Protecting Your Home Against a Judgement

Will I Lose my Home Because of a Judgement or Lien Against Me?
If you are asking whether it is possible to lose personal assets because a creditor is threatening or filed a judgement against you, sadly my answer to you is - Yes - Absolutely.

Once you ignore a debt for so many months your creditor must take the issue to court. You can be sure the result will somehow cost you. The result, like your case, is always unique. Circumstances will, like the outcome, be different for each individual.

Typically, after you've been served with your judgement papers you'll be given thirty days to respond. The judgment papers notify you that you are to appear in court regarding the debt. Use those thirty days to negotiate a resolution with the plaintiff-creditor!

Wage Garnishment and Property Seizure with a Judgement
If you have a judgement placed against you, depending on the state you live in, your personal assets can be seized, your wages can be garnished, or a lien can be placed on your home or property. Having a lien means you cannot sell or borrow against the property until you have paid the lien.

Possible Consequences of a Judgement

  • Personal asset seizure
  • Wage garnishment
  • Lien on your home
  • Lien on your real property

Will a Judgement Ruin my Credit?


All these horrible results listed above are in addition to the devastating effect it will have on your credit score! A judgement can stay on your credit report for an incredibly long 10-12 years. In fact, a judgement is only slightly less harmful than a bankruptcy. In these "credit crunched" days, having a good credit score is more important than ever.

Your creditor just wants to be paid - often for a significantly discounted amount. Alternatively, payment plans give the creditor a way to avoid suing you to get their money.

You Must Act Fast!
In any case, if you allow the courts to rule against you, your options will dry up quickly in the face of a court order. Judgements are always something to be avoided, if at all possible. Sometimes creditors can be flexible to find a suitable plan. However, you must communicate with the creditor to find that solution.

If necessary, hire a good credit attorney and get some expert counsel before it's too late. Dealing with debt problems head-on is always better than avoidance. Get started today, you'll be glad you did!