Judgments and Supplementary Process
Hearings
What is a judgment?
A judgment is a court ruling that a consumer owes a creditor a
specific amount of money.
How will I be notified of the judgment hearing?
After the creditor has filed a complaint with the court, a document
called a summons will be delivered to you either by registered
mail or by an officer of the court. The summons will detail what
type of lawsuit has been filed, what the creditor in question wants,
and what you need to do to respond to the lawsuit. A summons usually
indicates the date, time, place, and presiding judge for a court
hearing.
Do I have to go to the hearing?
Usually, if you do not attend the court hearing, the creditor
will win the judgment by default. A default judgment means that
you have lost the opportunity to defend yourself. If your primary
source of income is from some type of public assistance at the
time of the hearing you may be considered "judgment proof" which
means that you do not have the means to repay the debt. If you
believe that you are judgment proof, you should write your creditors
and explain your situation. The creditors may decide not to pursue
collection activity. If you do not reach a written agreement
with your creditors before the hearing, you should attend the
hearing. Most likely, the creditor seeking the judgment will
be given a postponement of judgment or "continuance." At the judgment
hearing, do not agree to repayment terms with the creditor's representative
prior to appearing before the judge. Any arrangement you make may
then be presented to the judge and made a court-ordered payment
plan making you legally liable for this payment arrangement whether
you can afford it or not.
If you wish to dispute the validity of the debt you must do so
at the judgment hearing. Take the proper documents with you to
the hearing to confirm your claim. Once the court establishes the
amount and the validity of the debt, a favorable judgment will
be given to the creditor and you will be legally responsible for
repayment of the debt along with court costs and attorney's fees.
What happens if I do not repay the debt after my creditor
has been awarded a favorable judgment?
If your debt to a creditor remains unpaid, the creditor may apply
for a supplementary process hearing and attempt to collect the
debt through a court-ordered payment plan. You will be summoned
by an officer of the court to appear at the hearing. You must appear
at this hearing; failure to appear will result in a charge of contempt
of court.
At the hearing the court will examine your ability to repay the
debt. The court may order that you transfer any non-exempt assets
to the creditor for sale or auction to help satisfy repayment of
the debt. (Non-exempt assets are ones that you would not be able
to keep according to Chapter 7 bankruptcy.) Alternatively, the
court may order a schedule of payment to be made to the creditor.
If the court finds that you are unable to repay the debt, payments
may be deferred.
Wage garnishment is another option for a creditor who has been
granted a judgment.
What happens if I do not follow the court order?
If your creditor wishes to pursue the matter further, you may
be arrested for contempt of court. You may then either be fined
or jailed. After the contempt charge is settled, you are still
responsible for paying the debt.
The above information should be understood to be a general
discussion of the subject matter and DOES NOT constitute
a legal opinion about the situation. For further information
please consult a qualified attorney.
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