I had a judgment filed against me for over $9000. What should I do?
Full Question:
I had a judgment filed against me for over $9000 last spring I believe. First of all, I never received anything in the mail or in person regarding the summons but I was told that they could serve me by mail. They put a hold on the bank account I had at the time, which had nothing in it. I called to try to make some sort of arrangements but they wanted me to come up with like $4000 which was impossible. I haven't heard anymore since last year. I saw it on my credit report which made me think about it. What could happen next? What should I do? Why do you think I haven't heard from them in over a year?
06/04/2007 |
Category: Judgments |
State: New York |
#6154
Answer:
You might:
1. Repay the debt (make a deal directly with the creditor);
2. File a proposal to creditors; or
3. File for bankruptcy.
Unfortunately, once a creditor has instituted garnishment proceedings, the garnishment is difficult to stop without filing for bankruptcy. Many jurisidictions offer certain property exemptions to a debtor which will protect the property from the collection efforts of the creditor. In order to claim the exemption, the debtor must file certain paperwork with the court and creditor notifying both of the debtor's intent to exercise the exemption.