How many court cases led to debt judgments?

Just how many cases led to judgments is a difficult number to find in the fractured court system. Debt cases are handled in a variety of small claims courts and state courts subdivided into districts. But consumer attorneys studying the issue say that a flood of lawsuits by debt buyers is keeping courtrooms busy.

How does a judgment work in a debt collection case?

In a debt collection case, the judgment is a court’s decision that you owe a specific sum of money. Armed with the judgment, the holder of the debt, called a “judgment creditor,” can take legal steps to seize the amount. It can also charge interest at a court-approved rate, typically in the range of 5 percent to 10 percent, until you pay up.

Can a debtor fight a default judgment in court?

Fight the decision. In most debt judgments, consumers never got their day in court. Often these one-sided “default” judgments can be erased, giving the debtor another chance to fight the charges. If you’re willing to fight, the creditor’s case may even crumble in court, if it lacks documents proving the debt.

What happens when a judgment is filed against you?

But after a judgment ruling, the creditor can take steps to seize part of your wages, freeze your bank account, or even haul away your belongings. Having a judgment for debt filed against you is frightening, but not the final word.

How does a debt settle after a judgment?

Many post-judgment debt settlements are concluded with a phone call from a bankruptcy attorney, giving the debtor more leverage. When creditors’ lawyers hear from a bankruptcy attorney’s office, “they understand that bankruptcy is a reality,” Arizona bankruptcy attorney James Kahn said, ratcheting up the pressure on them to make a deal.

When does a debt collection agency Sue You?

While each case is a little different, and different states and courts have different rules, here’s what generally happens if a collection agency sues you for nonpayment of a debt. A debt collection lawsuit begins when the collection agency files a “complaint” (sometimes called a “petition”) in court.

What happens when a default judgment is entered?

In fact, statistics show that more than 90% of people who are sued by debt buyers don’t file a response with the court. The danger of allowing a default judgment against you is once this occurs the debt buyer can garnish your wages and your bank accounts.

Can a debt collector fight back in court?

If you are being sued and fight back in court, you may have a better chance than you think. It is not unusual for a plaintiff in a debt collection lawsuit to drop its lawsuit because many debt collectors lack the documentation they need to prove a debt.

Can a debt collector get a judgment on your credit?

The only scenario where an old collection account can affect your credit is if you are sued and the collector gets a judgment against you. That new judgment would have its own seven-year reporting period. You can get your free annual credit reports to see if you’re facing a judgment.

When was I sued by a debt collector?

I was sued by a Debt Collector in March of 2012 For a Discover Card Debt for Aprox. $7,000.00 Destroyed my Credit, I just found … My daughter broke her lease now her landlord is hitting me up for months missed in paying. I received a civil suit asking me to pay back months and damage. … 2010 truck repo – we can’t pay!

Why is my phone number being called about an old debt?

First let me explain why a collection agency is writing or calling your phone number, out of the blue, about an old debt. More than likely you have an old, unpaid account such as a phone bill or medical bill that was recently sold to a new collection agency. It could also be credit card debt or even student loans from your distant past.

Can a debt collector still collect after 6 years?

In most states, they run between four and six years after the last payment was made on the debt. This means that even a debt that is older than that may still be able to be collected on if you’ve made a payment sometime in the last four to six years.