This post is not written to be legal in nature, otherwise it would be a whole heck of a lot more boring, rather I just want to highlight the basics of a Default Judgment and what to do if you find out there is one on your credit report. I have never practiced in this area, this is no where near an expertise of mine, but rather I was prompted to write this post after helping a couple of my family members, who had a default judgment in their name.
I want to highlight 3 distinct questions, and then I can expand on these areas if questions arise:
- What is a default Judgment?
- How will a DJ affect your personal finances? and
- What to do if you get hit with something like this.
Before we get started, this post is not intended as legal advice, but rather just an introduction into the topic and as a starting point to discuss your situation with your legal or financial professional.
What is a default judgment?
Findlaw, an invaluable resource to those attorneys and non-attorneys, who need a legal definition, defines a default judgment simply as,
a judgment entered by a court after an entry of default against a party for failure to appear, to file a pleading, or to take other required procedural steps
Simply put, a default judgment is nothing more than a judgment obtained because defendant didn’t show up. This is the most basic definition and depending on your particular state there may be a more expansive defintion (i.e. a judgment predicated on a failure to produce evidence).
If you purposefully ignored a subpoena then you have a larger hurdle to overcome, but if you have no idea where it came from then continue to question #2. If you ignored subpoenas and now there is a judgment…get an attorney. Similarly, I implore anyone reading this,
IF YOU GET ANY LETTER FROM ANY U.S. ATTORNEY DO NOT IGNORE IT
Whenever I someone contacts me about a situation like this, I ask for all correspondence from attorneys, if there are any. Our constitution affords us the protection of Notice of any suit which is brought against a citizen as such every state has some sort of law associated with notice/service of a subpoena. Some states let you do a nail and mail (i.e. affix subpoena to the door and then mail a copy – NY Language), some do not, some let you serve people at work, some do not.
How does a DJ affect your personal finances?
A simple google search of Credit Report and Judgment provided a great wiki answer,
The Fair Credit Reporting Act [15 USC Section 1681c]
(a)Information excluded from consumer reports…
(2)…civil judgments…that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.
So, 7 years from the date of entry, or longer, if your state has legislation which allows it report longer.
Here is input from others:
* A judgment remains on a consumer’s credit report for 7 years from the “date of entry, or until the governing statute of limitations has expired, whichever is longer”. This time period applies to each legal action. Under certain circumstances and certain state’s laws, judgments can be renewed. The renewal of a judgment would allow it to show on a credit report for 7 years from the date of renewal, if allowed by state law.
* Generally seven, although most judgments are renewable in which case it could be on a cr a very long time. If paid it would be listed as “satified” and be expunged after the 7 years expired.
What do you do if you find out there is a Judgment out there?
Call a licensed attorney and get your butt down to the court house where the judgment was issued and see the pro se department.
Anyone have any experiences?
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how does or who reports default judgments to credit reporting bureaus?
Sorry for the delay! It is usually the creditor who will report the outcome of a judgment (default or otherwise) obtained by an attorney
Question I won a personal judgment against a landlord and the judgment was filed with the court how long will that judgment stay in effect.
@ Robert,
Judgments differ from state to state. My recommendation would be to contact the sherrif’s dept in the county you received the judgment and start asking questions.
In New York, a judgment is good for 10 years (or at least it was when I was studying for the bar).
What about me, the one who asked for the judgment against someone who owes me money? What happens to the person who said they owed it and would pay it, now I have to pay for it? What can I do to get my money back?
@Tonya,
To get your money back you are going to have to sue the person to obtain the judgment. For all intents and purposes, a Default Judgment (the point of this post) only happens after you file a lawsuit and the other person doesn’t show up.
So depending on the amount and your relationship with the debtor…get your butt into court. Many states, municipalities, villages, etc. have some sort of small claims system where you won’t need a lawyer.
We have a lawyer (albeit not a great one) who was supposed to go to court a couple of weeks ago to file the judgment. Assuming he has or will, what will we do then? Will a judgment be a means to getting our money back, or just if he tries to buy something?
@Tonya,
1) Where do you live? If you are in the NY area I can probably recommend someone (NOT ME).
2) If you have hired a lawyer, he first needs to obtain a judgment. This does not mean he can walk in and demand one from a judge. The other side might have fought back, the other side might have gotten a lawyer themself. There are a million different things that could have happened.
3) Once a judgment is obtained, in most states, it then needs to be filed. That is a state to state procedure, but one that your lawyer SHOULD handle.
4) Once filed with the proper authority (i.e. a sheriff) that sheriff can then go seize bank accounts, put a lien on a piece of property, garnish wages, etc.
The most important thing is – CALL YOUR LAWYER! Open communication with those professionals in your life is HUGE.
Thank you for your help. My husband talked with him today and he is moving in the process.
Let me know how it goes! Keep us updated…
I sure will.
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HELP! I was served with papers to appear in court for a debt. I have just lost my job and have nothing right now. I have not even received unemployment benefits. I am scared to go to court. What will happen if I ingore this? Can I go to jail? Pleas reply via my emial address
Sick,
DO NOT IGNORE THE SUMMONS AND COMPLAINT! Opening up a default judgment is a much bigger pain in the butt than it is to try and defend. I understand your fear but not showing up is a horrible idea.
Also you should put in an Answer. Most clerks will help you draft a denial
Evan, thanks..I am going to go face the music…I am Florida…Is it possible the courts will work with me on a better payment plan? I contacted the collection compnay and they wanted a 20% down payment that I dont have
Usually the Court will ‘urge’ the attorney to work with the debtor. I know you are hard up for money, and I am not sure the amount of the debt, but be very careful before you sign anything. You also may want to contact Miami Univ Law school and see if they have a free law clinic.
I just pulled a copy of my credit report and found a civil judgment for $2,400 from an apartment complex I walked away from back in 2005. The judgment was not there last year when I checked my credit and I never received any notice or court documents. I only had three months left on my lease, but at the time I had to walk away. I was recently married and we were just started looking into buying a house. Is there anything that I can do? I am willing to pay the balance in full, however I am worried that if I don’t educate myself on every option, I may miss something. I understand that the debt is my responsibility, but I am nervous to go about this situation in the wrong way and be stuck with the Public Record if there is a way to satisfy the debt and still have it removed from my report. Thank you in advance for your advice.
Right off the bat, nothing said can be construed as legal advice…with that out of the way,
I would get my butt to the county clerk’s office or district court (no idea what state you are in) and find your case! Bring lots of quarters and make copies of everything and then you can see where the judgment came from, and your options.
Thank you for your advice Evan. I understand that it can’t be construed as legal advice, but I appreciated your expertise non-the less.
I live in another state now, but will be going home to visit very soon. I will head strait to the district court to find my case with lots of quarters. Do you think this is something I should speak to a lawyer about or do you think this is something I can handle on my own? Just in your opinion of course. If I do need to speak to a lawyer, do you know what kind of lawyer I should speak with?
It all depends on the information you find when you pull your case. I have found on smaller stuff like this it may be useful to do it pro se (on your own in latin talk). Most courts have a pro se dept filled with lawyer to help you out.
That being said, it is always helpful to talk to an attorney that knows the facts of your case.
Thank you Evan, I appreciate your time and help. I think I will head straight down to the district court office to figure out what is included with my case and see if there is a way for me to do this pro se.
in 2002 i was served with papers to go to court for a reposessed car. I was in state prison “california” at the time, so I could not get to court. they expect me to pay them 19,000 dollars for a car i was only paying 12 for ,and they sold at auction for 850.00. the transmissin went out on the car at 60 thousand miles and ford wouldnt grant warranty for said vehicle. any way since i have proof that i was in prison and could not be in court to plead my case ,can i have this judgement overturned after 8 years ?
If the judgment was discharged in a bankruptcy case, Will the judgment still remain on the credit report? In 7 years or whatever the time limit is, can the plaintiff file another lawsuit for the same reasons even if it were discharged in the bankruptcy? TIA!