When a credit card is granted a judgement against you - do they then autimatically have the right to seize your assets, garnish wages etc.? Or will the judge allow you to make certain payment arrangements & only if you don't follow through allow them to take your assets?
State/Country relating to Question: Alabama
Negotiating a settlement payoff but I don't have the money to even pay that at even 2/3 off.
They do not have an automatic right to seize assets or garnish wages. They would have to get a court to order that they have those rights and if they petition the court you will get notice and you can fight it or ask for an Exemption showing you are low income or you have very few assets so that the court denies their request.
So at the initial court date will the judge determine some type of payment arrangements for me to stick to & make that part of the judgement?
No the judge will only decide if you should be ordered to pay the full amount or not, he will not require the creditor to give you a payment plan. You can ask but it is very unlikely it will be granted.
So what should I expect to happen at court & after court if they win the judgement against me & why wouldn;t they if I clearly owe the money but it doesn't matter that I don't have enough income to make the large payments that they would want?
More than likely you will lose since you owe the money. The only way to win is to show that you did not use the credit or that they have falsified how much you actually owe. The judge will give them a judgment. That is just a piece of paper. Then they will start collection of the judgment by sending you a document to complete listing you income and assets. If you have little then you will probably not hear from them again. If you are working they can try to get up 25% of your wages garnished then you file an exemption request and you may get the court to rule they can not garnish so then they are left with no way to collect.
So what do you suppose would be the next step when they do win & my husband & I both have businesses & a few assets but no sufficient income because neither are making a profit yet?
Then they may place a lien on your home or any property your own so that you can not sell it without paying them first, but that would be it.
Can they touch our businesses or the few business assets with the judgement as they are both sole proprietors?
Also my home already has a lien for the full value of it from a relative.
They can not force you to sell or lose anything, they could just put liens against any of the business assets.
So they couldn't for instance take our car or my husbands rather expensive truck which he needs to move objects in the business - they could just put leins on everything?
I know I'm asking alot of questions but I'm freaking out & know zero about any of this & this is just the beginning of the problem - there are probably 5 more in line ready to do the same thing.
That is right they can only place liens. The truck is required for his business and it would be expect from seizure, just as your family car or the one you drive for work.
So what type of things can they actually seize than with a judgement?
If you won more than 2 cars, or more than one house, they can ask the court to allow them to seize those assets.
Could they ever try to take like personal things out of our house if they thought they were of value?
Only if you have some antique or item that is a luxury. But normal household goods are protected.
Attorney-Business degree from The University of Texas
Thanks so very much!
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