In the debt collection arena, judgments/judgment
risk/judgment collection AND judgment
recovery are always a big concerns. Such
concerns include thinking about; would a creditor sue and seek legal judgment
against me? OR what sort of judgment will it be? OR Is there any option I am
left with?
Debt collectors must be abided by their state's Statute of
Limitations (ALSO KNOW AS ‘SOL’) for the period of time to sue a debtor for
“payments”. This means consumers’ first step is to determine if SOL for
collecting a debt is over or not.
Moreover, if the SOL has not yet passed; you as the consumer
must weigh the risk factor of judgments when determining if you should pay a
past due. Judgments may allow the creditor to hire an authority to come and get
your property.
But, sometimes it is simply so much time and opportunity for
a creditor to take action against you.
Ø
JUDGEMENT: “A decision issued by a court by the
end of the lawsuit. If in favor of a creditor it not only verifies the debt but
can increase the debt by summing interest, court fees, AND collection/attorney
fees an may extend up to 20 years on the credit file. A decision in favor of
the debtor makes a debt unrecoverable and may include reimbursement of legal
costs to the debtor. It also employs a judgment recovery specialist to deal
with all the activities involved in this whole process.”
Ø
JUDGEMENT PROOF –: “A debtor has little or no
property that a creditor can legally take to collect in the foreseeable
future.”
As per Credit Info Center; "The risks of judgments AND
property seizures must be properly balanced against the likelihood that such
drastic collection measures will ever happen. The bottom line is that the risk
and the decision to take that risk are entirely yours if you're in such a
position."
