How Long Do Judgments Last? Bankruptcy Can Help

In a Nutshell: If a creditor sues you for unpaid debt and wins, the court issues a judgment against you. Judgments give creditors legal power to garnish wages or freeze bank accounts. Judgment length varies by state. Some expire after five years while others last up to 20 years. Many states let creditors renew judgments. Filing for bankruptcy may eliminate judgment debt you cannot afford to pay.

How Long Do Judgments Last?

In most states, judgments last 5-10 years. However, some states enforce them for up to 20 years. State law determines the exact timeline for money judgments.

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Stop wage garnishments and bank levies immediately. Discharge unsecured judgment debt from credit cards and medical bills. Speak with a bankruptcy attorney today to see if you qualify for a fresh start.

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A money judgment is the most common judgment type. It confirms you owe a debt. It allows creditors to collect through wage garnishment or bank levies.

Creditors may also obtain other judgment types. A judgment lien gives them a legal claim against your property. Some states have different time limits for different judgment types. A money judgment may expire sooner than a real estate lien.

What Is a Judgment?

If you fall behind on credit cards, loans, or other debts, creditors may sue. When they win, the court issues a judgment. The judgment is a court order confirming you owe the debt.

A judgment gives creditors legal power to take serious collection steps:

Wage garnishment takes money directly from your paycheck
Bank account levy freezes and withdraws money from your account
Property liens attach to your assets and prevent you from selling them

If you do not respond to a lawsuit, creditors can win by default judgment. Default means they automatically get the court order because you did not appear.

You can avoid default judgments by responding to lawsuits. Many people successfully respond on their own. You can also get help from our partner Solo, which has helped over 280,000 people respond to debt lawsuits.

Can a Judgment Be Renewed?

Many states allow creditors to renew judgments before they expire. Renewal extends the collection timeline. Renewal rules vary by state.

For example, Idaho judgment creditors have five years to collect. After five years, they can renew for five more years. Some states only allow one renewal. Other states allow indefinite renewals.

A judgment creditor is a creditor that won a lawsuit. They have a court order against you to collect on a debt.

If a creditor does not renew the judgment, it expires. You no longer owe the remaining balance. However, some states allow creditors to revive expired judgments with a simple renewal request.

To find out how long judgments last in your state, contact your state court. You can also reach out to a local legal aid office or your state’s attorney general.

How Long Do Judgments Stay on Your Credit Report?

Judgments no longer appear on credit reports. In July 2017, the three major credit bureaus stopped reporting civil judgments. Equifax, Experian, and TransUnion made this change. A judgment itself will not hurt your credit score.

However, the debt that led to the judgment can still impact your credit. Missed payments can appear on your report. Accounts sent to collections can remain for seven years. Charge-offs also stay on your report. These negative marks can damage your credit score for seven years.

The judgment will not be listed. But the financial trouble that caused it may still affect your score.

How Do Creditors Collect on Judgments?

As long as a judgment is valid and collectible, judgment creditors can pursue serious collection measures. They can garnish your wages, levy your bank account, and place liens against your property.

Wage Garnishment

Wage garnishment allows judgment creditors to take money directly from your paycheck. Federal law limits how much they can take.

Creditors can typically garnish up to 25% of your weekly disposable earnings. They can also take the amount that your weekly disposable earnings exceed 30 times federal minimum wage.

Certain types of income cannot be garnished. Social Security income is protected from wage garnishment.

Bank Levy

A bank levy is similar to wage garnishment. Instead of taking funds from your paycheck, creditors take money directly from your bank account.

Once a creditor gets a court order for a levy, your bank will freeze your account. You cannot access frozen accounts. The bank will then send funds to your judgment creditor.

Creditors can levy your bank account multiple times. They can do this until the judgment is paid off.

As with wage garnishment, certain income types are protected. Creditors cannot levy Social Security income or child support payments.

Property Lien

If you own property and a creditor gets a court judgment, they can place a lien on your assets. Judgment liens can attach to real estate or personal property.

A judgment lien is recorded with the county recorder. It works just like a mortgage or any other property lien. If your property has a judgment lien, you usually must pay the lien before selling.

In some cases, you can pay off the lien using sale proceeds. Getting a lien can be expensive for debt collectors. They often prefer to garnish wages or bank accounts instead.

Can You Get Rid of a Judgment?

You can deal with a judgment in several ways:

Pay the judgment: Many judgment debtors cannot afford to pay in full. You can try to negotiate a payment plan with the judgment creditor. If you do not negotiate, the creditor can garnish your wages. Once the judgment is satisfied (paid in full), it goes away.
Wait it out: You can try to wait for the judgment collection period to lapse. Most judgments last a minimum of five years. Some can last 20 years or more if renewed. While you wait, you risk serious collection measures unless you are judgment-proof.
File bankruptcy: Filing for Chapter 7 bankruptcy can eliminate judgment debt from unpaid credit cards, medical bills, or other unsecured debt.

Filing Bankruptcy To Get Rid of Judgments

Bankruptcy erases certain debt types, including judgments for credit card debt and medical bills. Chapter 7 can take up to six months. But there are immediate advantages to filing if you face unaffordable judgment debt.

Filing for bankruptcy immediately stops debt collection lawsuits, wage garnishments, and bank levies. The automatic stay provides this protection. If your Chapter 7 bankruptcy is successful, your unsecured debts will be discharged.

However, if a creditor has a lien against your property, Chapter 7 will not discharge it. Property liens are secured debts. You need to address secured debts differently in bankruptcy.

If you are struggling with judgment debt and other overwhelming bills, you can speak with a bankruptcy attorney for free to explore your options.

Frequently Asked Questions

What is a judgment and how does it affect me?

A judgment is a court order confirming you owe a debt after a creditor sues and wins. It gives creditors legal power to garnish your wages, levy your bank account, or place liens on your property until the debt is paid.

How long does a judgment last in my state?

Judgments typically last 5-10 years in most states, though some states enforce them for up to 20 years. Many states also allow creditors to renew judgments before they expire. Contact your state court or local legal aid office for specific information.

Can bankruptcy eliminate a judgment against me?

Yes, Chapter 7 bankruptcy can eliminate judgment debt from unsecured debts like credit cards and medical bills. Filing bankruptcy immediately stops wage garnishments and bank levies. However, judgment liens on property are secured debts and require different treatment in bankruptcy.

What happens if I ignore a lawsuit from a creditor?

If you do not respond to a lawsuit, the creditor can win by default judgment. The court automatically issues a judgment because you did not appear. You can avoid this by responding to the lawsuit or getting help from a partner service.

Do judgments still appear on credit reports?

No, judgments no longer appear on credit reports. The three major credit bureaus stopped reporting civil judgments in July 2017. However, the debt that led to the judgment, including missed payments and charge-offs, can still appear on your credit report for seven years.

How Long Do Judgments Last? Bankruptcy Solutions Explained