Get After The Creditor Wins The Lawsuit:

However, a paid or satisfied judgment will hurt a credit score less than an unpaid one. Even after a satisfaction and release has been generated, a satisfied judgment remains on a person's credit report for seven years. In other words, reporting agencies will not remove the history of the judgment once it's been paid.

If a lawsuit is filed, you MUST respond. If you don't show up for the court proceeding, the judge automatically rules against you and will order you to pay the full amount. Credit cards are unsecured debt — meaning there's no collateral at stake, such as a home or car — so the lender has limited options for collection. Can a Credit Card Company Sue You? How to Respond | InCharge incharge.org https://.incharge.org › debt-relief › sued-credit-card... incharge.org https://.incharge.org › debt-relief › sued-credit-card...

If you lose a civil case and are ordered to pay money to the winning side, you become a judgment debtor. The court will not collect the money for your creditor, but if you do not pay voluntarily, the creditor (the person you owe money to) can use different enforcement tools to get you to pay the judgment.

How do I collect my money? If you know where the Judgment Debtor banks, you can ask the Sheriff to collect money from their account (bank account levy). If you know where the Judgment Debtor works, the Sheriff can collect 25% of the debtor's wages each pay period until your judgment is paid in full (wage garnishment).

You can collect from their pay or bank accounts, or put a lien on their property. A lien is claim on their property like a bank loan on a vehicle or a deed of trust on a house. You can try more than one of these things at the same time. There are many different legal options to enforce a judgment. How to collect a judgment | California Courts | Self Help Guide ca.gov https://selfhelp.courts.ca.gov › civil-lawsuit › how-collect ca.gov https://selfhelp.courts.ca.gov › civil-lawsuit › how-collect

If you do not pay the judgment, the judgment creditor can "garnish" your wages. An Earnings Withholding Order (WG-02) tells your employer to send a portion of your paycheck to the Sheriff instead of you. The standard portion withheld is 25% of your net (after-tax) pay.

You may lose the ability to dispute the debt, if you believe you don't owe it or that the amount is wrong, and depending on your situation and your state's laws, the creditor may be able to: Garnish your wages. Place a lien against your property. Move to freeze funds in your bank account. What should I do if I'm sued by a debt collector or creditor? Consumer Financial Protection Bureau (.gov) https://.consumerfinance.gov › ask-cfpb › what-s... Consumer Financial Protection Bureau (.gov) https://.consumerfinance.gov › ask-cfpb › what-s...