C. Anthony Rumore, P.A.

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judgment avoidance & settlement

In order to obtain a money judgment, a creditor will be required to file a lawsuit seeking payment of past due debts. In the credit card scenario, most borrowers fail to respond to the lawsuit, which allows the creditor to win by default. If the borrower never files an answer to the creditor’s complaint, the court will assume the debt is valid and automatically enter judgment for the creditor. If you receive court documents in the mail that you do not understand, it is always best to contact an attorney to make sure that your rights are protected. You are better off to hire qualified legal counsel to defend the money judgment suit that has been filed against you and for your lawyer to seek an affordable settlement arrangement with the creditor (possibly for pennies on the dollar) before you ever reach the judgment phase of the lawsuit.

does bankruptcy eliminate a judgment?

Filing for bankruptcy will discharge your personal liability for debts, including debts that are owed to judgment creditors. However, if a judgment creditor has placed a lien on your property, filing for bankruptcy will not, in and of itself, remove the lien. In some cases, your bankruptcy lawyer may be able to petition the court to have liens that impair an exemption avoided, but judgments themselves can be sticky. The best strategy is to take necessary action before they attach. If it appears that there is little or no hope of debt settlement negotiation with your creditors because the debts are simply too high and settlements unaffordable, bankruptcy may be your best option.

here are some ways you can head off a creditor’s collection attempts:

negotiate with the judgment creditor

It’s never too late to negotiate with your creditors. The creditor’s process of trying to legally seize property to pay a judgment can be quite time-consuming and burdensome for the judgment creditor. Also, the creditor might fear that you’ll lose or quit your job due to a wage attachment, or that you’ll file for bankruptcy. None of that would help the creditor get paid. A judgment creditor who receives a reasonable offer to pay will often stop a lien, levy, wage attachment, garnishment suit, or assignment order if those negotiations are handled correctly.

claim property as exempt

Simply because a judgment creditor levies on your property or garnishes your wages, it does not mean that the creditor is legally entitled to take the property. Florida and most every State for that matter, exempts certain property from creditors. In addition, you may be able to keep property that isn’t exempt if you can prove to the court that you need it to support yourself or your family. Filing for a Claim of Exemption from collection of a Judgment Creditor often requires thoughtful legal analysis and understanding of your financial and family circumstances. If a Judgment Creditor has noticed you of a lien, levy, seizure or garnishment, you should consult with experienced legal counsel to examine your possible exemption claims.

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