Everything to Know about Judgements
It’s impossible to understand how easy it is to fall into financial crisis until it happens to you. If you’ve been issued with a judgement, you’ll probably want to know exactly what it is, what it means for your credit score – and most importantly, how to move on from the ordeal with your head held high.
It’s not impossible to bounce back after being served a judgement by any means. Take a look at this article to learn more about judgements, and equip yourself with the information to prevent yourself from landing in a similar situation again.
What is a judgement?
A judgement is issued by a court, and legally obliges you to pay off a debt. It happens when a creditor sues you for late payment or failure to pay off the outstanding balance on your credit card, and is successful.
How does the process work?
If you haven’t paid off your credit card debts, you won’t automatically be faced with a court hearing. But if your debts have been racking up over a long period of time, and it’s starting to look highly unlikely that you’ll pay them off, a creditor may decide to take action.
Once you’re in court, you can present certain information that may help your case, but ultimately, if you lose, you’ll be issued with a judgement that will order you to pay the balance off within a certain time period.
But I don’t have the money to pay off the debts – now what?
A judgement essentially means that a creditor can gain access to whatever assets you own in order to retrieve the cash value that you owe. This might mean accessing your bank accounts, but if you’re not financially equipped to pay your balance off, it could also include your property and household assets, or chopping into your wages.
How long will a judgement stay on my credit report?
Unsurprisingly, judgements will be documented on your credit report, and they’ll negatively impact your credit. You can expect a judgement to stay on your credit report for seven years – but this doesn’t always have to be the case. It may be possible to have your judgement removed from your credit report at an earlier date, by disputing its accuracy. Learn more about how to do this at Crediful.
How do I recover after being served judgement?
It’s never nice to have a judgement issued against you, especially if it results in the loss of your personal assets. However, it can act as a wakeup call if you’ve been struggling financially for some time now. It’s the biggest sign you’ll get that something in your life needs to change, whether that means moving house, getting a better job, or altering your lifestyle.
You’ll never have to face a judgement again if you can learn to manage your finances better. It isn’t always easy – and you should seek help and support from both your family and a professional should you need it. If you require legal advice, don’t hesitate to contact an attorney.