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A credit card judgment is a court order which confirms that a debt is owed and the steps which will be taken to recover the debt. Typical \”steps\” to recover a credit card debt include the garnishment of wages, seizing of assets, or even placing liens against real property.

It typically takes months to get to the point where a credit card judgment may become an issue. This usually follows months of continual attempts to collect the amount owed. You shoudl try to do everything in your power to keep this from happening. If you feel you may be facing a credit card judgment, this article will relay general information about the process and will give you several things to consider as well.

Falling behind on your credit card payments will bring endless letters and phone calls your way from the credit card provider requesting that you make arrangements to bring your account current. The credit card provider will ask that you pay the amount due in full or make arrangements for monthly payments. If you do not bring your credit card account up-to-date within a specified amount of time, your credit card account may be charged-off.

It is best to work with the credit card provider to reach a payment arrangement. If this does not happen, your credit card debt may be sold to a collection agency. It is normally the case that credit card debt is purchased for anywhere from 8 cents to 12 cents for each dollar bought. The collection process will begin again with the collection agency contacting you and requesting that you pay the credit card debt owed. Again, your credit score will take a big hit if this happens.

As collection agencies normally purchase debt for just 1/10th of the total amount owing, collection agencies are usually not motivated to file a legal action against you because this is typically a small amount to them. If the collection agency feels it is not getting anywhere with your debt, it may opt to sell your debt to yet another collection agency. If this happens, you will begin the collection process all over again.

If you cannot come to an agreement with this second collection agency, it may decide to file that dreaded law suit. This is when you may be looking at a credit card judgment coming your way. Legally speaking, you have the right to plead your case to the judge. If you can prove that the debt owed is not yours or if you can prove that there are extenuating circumstances, the judge may revise the judgement.

Adversely, if you cannot show that the debt is not yours or cannot show that there are extenuating circumstances, a judgment will be issued by the judge which will spell out how the debt may be recovered. Examples of these avenues of recovery may include garnishment of your wages, taking money from your bank account, seizing assets, and possibly even filing liens against your real property. These examples are dependent upon state law.

You should consider working with the credit card provider and collection agencies to get the debt paid. This will lessen the damage to your credit score. If you can come to an agreement with the credit card provider or collection agency, you will be able to dodge a credit card judgment.

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A court order which acknowledges that a credit card cardholder owes a debt and explains the way the debt may be recovered is called a credit card judgment. Typically a credit card judgment is issued when a credit card cardholder fails to make required minimum monthly payments and has not attempted to work with the credit card provider to come to an agreement for bringing the account current.

To keep the situation from getting out of hand, it is best to contact the credit card provider and try to work out an arrangement for payments. It is often the case that credit card providers are willing to work with you. By doing this, it may be possible to come to an agreement with regard to monthly payments or a lump sum payment to bring the account up-to-date.

If a credit card provider feels it will get nowhere with you regarding your credit card debt, it may sell your debt to a collection agency. If so, you will then have to negotiate with the collection agency as the credit card provider has removed itself from the equation. Most collection agencies do not want to file a law suit against you as it is time-consuming and costly. They would much rather work with you to settle the debt, either through a lump sum payment or by arranging monthly payments.

If your debt does come before a judge for a credit card judgment, you have the right to appear before the judge and plead your case. If the debt is not yours or if the seizing of the assets would mean serious difficulties for you, the judge may take this into consideration. However, this is viewed on a case-by-case basis.

Additionally, not all assets may be seized and a judge may determine exactly which assets may be taken. A judge may also order that money be taken from your bank account to pay the debt , may set a ruling to garnish your wages (depending upon state law), or may even order the filing of a lien upon your real property, if you own any.

It goes without saying that a credit card judgment will create havoc with your credit score. You will most likely be denied for most credit products and, if you are approved for any credit products, exorbitant annual percentage rates (APRs) and annual and monthly fees will be associated with those which are offered to you. Additionally, your credit report can carry this credit card judgment for up to seven years.

As if this wasn’t enough, this credit card judgment can also affect your chances of future employment or advancement in your current job. Also, searching for reasonable rates on home and car insurance may be affected.

It is best to pay the credit card debt off as quickly as possible once the judgment has been issued. Once you have paid this debt off, you should try to contact the credit reporting agencies to attempt to have the debt removed in its entirety or to request this entry be revised to a “paid” status, at the very least.

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