Civil Court Judgment Survival Tips

It can happen to anybody.  Loss of household income due to layoff, the passing of a loved one or a divorce from someone who happened to be an income earner, health issues in the family resulting in loss time from work and/or mounting medical bills.  All these things make conditions favorable for a perfect storm – a civil court judgment.

Avoid the Judgment If At All Possible

The first thing to do is avoid getting to the point where a party wants to take you to court.  

At the first indication of getting behind, write a letter detailing what led to the current personal financial crisis.  Don’t write a sappy letter to pull the heart strings and try to get sympathy because basically they don’t care.  Just write a to-the-point summary of what has happened. 

In the next paragraph, write what you plan to do about it.  If you can’t pay anything, then you can’t pay anything.  If you can send something as a good faith payment, then send it.  Keep them updated consistently on the situation and try to send something first opportunity.

Send any and all payments by money order only and do not obtain the money order from your banking institution.  Anyone with a judgment can subpoena information, but no sense in making it easy for them to know the location of personal bank accounts to issue a garnishment should a judgment takes place.

On a side note with that being said, if asked the place of employment or employer/company name, don’t disclose.  Any information obtained is used to collect a debt. They tell you that up front.   Again, a subpoena can be served to obtain this information and it may be asked during a court hearing - which in both cases, must be disclosed.

The sooner intention is shown to pay the debt even if not financially able at the present moment, the better the party owed the money will try to work with you.  Some companies could call everyday.  If a letter was sent or a conversation took place within 30 days, tell them:

• to check their records on the last communications
• tell them nothing has changed since then and if it does they will be notified immediately,
• tell them the date which would be 30 days since the last communications on when you will give them an update.

Don’t let the harassing calls shake you up.  Plus, being upset will only push the brain to the back making a person prime to make an unaffordable arrangement out of persistent nagging – a technique that bill collectors have perfected.

Court Hearing Set for Judgment

Many years ago, a party filed a civil case.  To make a long story short, the money to cover the debt owed was coming, but wouldn’t be in time to avoid the judgment and I didn’t want to screw up my credit.  Since I had access to an attorney, he suggested that I could file an answer*.  He told me exactly what I would need to say and then I downloaded a court filing template.  Filled in the information and sent it to the court via US Mail – certified and return receipt.  This caused a series of events that postponed the hearing (this is best that I can recollect because this was when I was a youngster… but bottom line we never made it to court and I sent them the money and the case was dismissed).  

The key in this is having access to an attorney and seeking legal counsel to properly advise.  Not playing attorney.

*An answer can also stimulate the filing of subpoenas from the other party for information including place of employment, all sources of income, and all banking information. 

Gavel is Struck - Judgment is Granted

When judgment is granted, income and assets are open for garnishment.  Depending on the type of debt and amount, liens could be placed on property.

This is the time to make a payment arrangement that is satisfactory.  If the payment arrangement is not satisfactory to the other party, then the process begins for them to seek collection through garnishment.  It’s not hard for companies who have judgments, especially those who have attorneys on retainer (they filed for judgment didn’t they?), to find out place of employment and banking information.

Usually, the funds that are deposited into accounts not related to earned income, unemployment, child support, etc. are wide open for the taking.  So, if the income tax refund check is deposited or a Certificate of Deposit or savings account is opened, that money is subject to garnishment.  The garnishment from earned income is requested directly with the employer and the employer takes the money out of the check and then sends it to the company.

Sometimes a series of garnishments can collect more money than was owed.  Other than seeking legal counsel and chasing after everybody to get the money back that shouldn’t have been taken, this could be exhausting and sadly…..possibly fruitless.

In Summary:

1. Don’t hide.  Be upfront about the situation.  Initiate the conversation and stay in control of the conversation – preferably in writing.  Keep copies.
2. Try the very best to make a realistic payment arrangement for you and them.
3. Only communicate information on a need to know basis.  Just because somebody merely asks a question, doesn’t mean you have to answer – especially without a court order for the information.
4. Seek Legal Counsel.  All possible scenarios and all the ins and outs about judgments, court filings, and garnishments were not included in this blog post.  This was merely an overview.

If sick, there is the doctor.

If the teeth need attention, then there is the dentist.

If surgery is needed, it’s performed by a surgeon.

SEEK LEGAL COUNSEL FOR ANY AND ALL LEGAL SITUATIONS.

 N