How Bad Is A Collection Case Judgment In Alabama?
“How Bad Is A Collection Case Judgment In Alabama?”
Four Negative Results From Collection Judgments
First, it is a judgment and that damages your credit report.
Second, you can have your wages garnished.
Third, you can have your bank account garnished.
Fourth, the judgment often earns interest at 12% or more which means that the judgment, if not paid, will double in approximately 6 years. And then double again in 6 years. And it keeps on repeating….
How To Fix A Judgment Issue
If you were not served properly, then you may be able to undo a default judgment. See the video below:
If the judgment was properly obtained, then you need to make a settlement with the company that owns the judgment or you can look into bankruptcy to see if that is a viable option for you.
Better Yet — How To Avoid A Judgment In Alabama
The biggest danger to you suffering a judgment in a collection action is by defaulting. While occasionally default judgments can be set aside, it is difficult. So answer the collection lawsuit and avoid having to get rid of a judgment.
If you are going to lose, at least make the collector prove its case. But often when you stand up and fight, the collection case may not be successful.
You may want to read our article (or watch the video) on the Five Secrets Debt Buyers Don’t Want You To Know About When They Sue You In Alabama.
If you have any questions and you live in the state of Alabama, you can give us a call at 1-205-879-2447.
I look forward to chatting with you!
Have a great day.