What Happens If a Defendant Does Not Pay a Judgment?

You’ve received a judgment. Maybe it’s been there for a while. The amount is substantial.

You’re wondering if you should even pay it.

Ignoring a judgment creates serious consequences. You need to understand what’s coming.

Understanding What a Judgment Really Means

A judgment comes after someone sues you. The creditor files a lawsuit in court. The court decides what you must pay.

The judgment includes the original debt plus interest.

You’ll encounter different judgment types. Here’s what each term means:

• Default judgment: You get this when you miss the response deadline. The creditor gets everything they requested. Our partner Solo can help you respond quickly and avoid this outcome.
• Vacated judgment: The court wipes the judgment from your record. You can request this if you never received proper notice about the lawsuit.
• Unsatisfied judgment: You haven’t paid the debt yet.
• Satisfied judgment: You’ve paid the debt in full.
• Stipulated judgment: You and the creditor agree on settlement terms. This might include a reduced lump sum or payment plan.
• Renewed judgment: The creditor re-files before the judgment expires.

Consequences of Not Paying a Judgment

Nothing good happens when you ignore a judgment. The creditor gains legal power to collect from you.

The judgment gives them permission to take money. Your cooperation becomes optional.

Property and Wage Seizure

The creditor can request an execution from the court. An enforcement officer like a Sheriff gets authorization to seize your property.

They can take your car, sell it at auction. Perfectly legal.

Creditors can also place liens on your property. They essentially own it until you pay. Selling your house becomes impossible.

Any proceeds from the sale go toward your debt first.

Wage garnishment is another collection method. The court orders your employer to withhold money from your paycheck. Banks can pull funds directly from your account.

The amount varies by state. There’s a cap to ensure you can survive. VA benefits and Social Security are usually protected.

Potential Jail Time

Creditors have a sneaky tactic when they can’t access your assets. They schedule a debtor’s examination.

They ask you detailed questions about your finances. Miss this appointment and the court holds you in civil contempt.

Contempt means jail time. You stay there until you pay the bond.

The bond amount usually equals what you owe.

Always attend debtor examinations. Even if the creditor has tried this multiple times. They’re hoping you forget just once.

Growing Interest and Fees

Judgments accrue interest while they’re active. The interest never stops accumulating.

Most judgments last five to seven years. Some states allow 20 years or more.

That’s enormous interest growth. It’s also a crushing mental burden.

Damage to Your Public Record

Judgments appear on your public record. They show up on credit reports alongside bankruptcies and tax liens.

Your credit score takes a major hit. Lenders become reluctant to work with you.

Background checks reveal judgments too. Jobs paying over $75,000 annually require disclosure to potential employers.

Some judgments disappear when they expire. But creditors can renew unsatisfied judgments.

Time only helps if your creditor forgets about you.

What Happens After You Pay

The judgment comes off your credit report. Paying the debt starts rebuilding your credit score.

Get the creditor to file a Satisfaction of Judgment. They must file this with the court clerk.

They also need to remove any property liens. This step cleans your public record completely.

Don’t skip this critical step. You need documentation proving the debt is satisfied.

Finding the creditor later becomes difficult if you forget. You’ll need extensive proof for the court clerk.

What if the creditor refuses to file?

Send them a formal letter. They must respond within the required timeframe, usually under 30 days.

If they refuse or ignore you, the court may require them to compensate you. Maybe their delay caused you to miss an important deadline.

Many states require creditors to cover damages from their neglect. Once you satisfy the judgment, the court sides with you.

Protecting Your Rights With Professional Help

You don’t have to face debt collectors alone. Our partner Solo helps you respond to lawsuits correctly and on time.

Professional guidance prevents default judgments. You gain leverage to negotiate better terms.

Acting quickly protects your wages and property. Responding properly keeps you out of court contempt.