You owe a creditor some money! You can't pay! You just don't have the cash and there is nothing left in your budget. You tell the creditors, but they just want their money! This is how it usually starts out. You have every intention of paying your bills, but you just can't for one reason, or another!

The creditor decides to take its debt collection process a step further, and starts a lawsuit against you. In most cases, there is nothing to defend. You know you owe the money. The bottom line...the creditor gets a judgment against you.

Whether you realize it or not, the entry of a judgment against you puts a lien on all real property you have in the County where the judgment is entered, the only exception being that a judgment against just you won't be a lien against property you already own as husband and wife (at least in Indiana). But, if the judgment is against both you and your spouse, even that is no help. The judgment will be a lien against all your real property. The judgment lien is a lot like having a creditor get an additional mortgage against your property. And worse, assuming there is some value in your real property above the mortgages, the creditor may well be able to put your real property up for sale at public auction. This would be a tough way to lose your home.

To make things worse, the judgment gets bigger and bigger because the creditor has a right to interest as long as the judgment is left unpaid.

Then....adding insult to injury....the creditor can also come after other things you own, like your car, household goods, money in the bank, tools, equipment, etc. But first, most creditors must give you a right to claim certain "exemptions" (at least in Indiana). Exemptions are categories of property that, up to certain limits, the creditor cannot take, but only if you claim them. If you are like most people, by the time you need to claim these exemptions, you are so dazed and confused and used to ignoring everything, you don't even fill out the paperwork to claim your exemptions. That's not good at all, because not doing so gives the creditor the right to come after almost everything you have, except for money in retirement accounts.

The Creditor is awarded the judgment for whatever amount of money is owed, plus...in many cases...attorney fees and court costs. Lets say it's $2,000.00 as an example. What does this mean? Well! First it means that the Creditor can take the money out of your checking account, if he can find your bank account. Here's an example. You have just put your paycheck in your checking account. It was $800.00 and let's say the creditor knows where you bank and has already requested that the bank collect any money that gets deposited into your accounts. In this example, it would be $2,000. The $800 would be gone! If you have any money in a savings account, it will also be gone.

The judgment also goes on your credit report and that means no more credit in most cases. It also has some negative effects when you're working a job with a security clearance.

It's embarrassing! It's also something that can be taken care of using Federal Bankruptcy Laws! You can stop these negative affects of judgments fast! If need be...as for instance in the case of a "non-dischargeable" debt....and using Chapter 13...you can claim the right to pay it over up to 60 months in most cases. So! Over 60 months, your payment on this debt would be less than $10 per week. And that assumes you have to pay it at all. Many judgments...especially with respect to unsecured debts...never have to be paid back. It just depends on the facts of your particular situation.

Every thing you think is hopeless has a solution....if you ask the right person!

The Bankruptcy Law Offices of Mark S. Zuckerberg, P.C. can give you straight answers to tough questions. They can also start the process to take that monkey off your back on the first visit!