What is the process involved in Judgements?

[Shrike1070]

What is the name of your state?What is the name of your state? CO

Can anyone explain what the timeline is for a judgement process and what happens all the way along the line towards garnishment, liens, levies, etc?

I know that it starts with a creditor filing suit in the court most local to the debtor. And then the debtor will be served a summons to answer the complaint, at which time the debtor has 20-30 days to file an answer with the county/court clerk.

I assume that there will be a hearing if the debtor decides to file an answer; if he does not, then the creditor - or his attorney - will ask for a default judgement.

What happens next if a judgement is awarded to the plantiff (creditor)? How long does it take for garnishments, etc to take effect? Are there any additional hearings after the judgement has been finalized to arrange for the hand over of assets, bank account numbers, etc. Or would I suddenly show up at the bank one day and discover that all my money was gone? Likewise, for money on a paycheck. How would my employer receive notice to garnish?

Sorry for all of the "hows" and "whys" questions!!!! Thanks for your help - and education - of this dumb poor guy.

[Ladynred]

I assume that there will be a hearing if the debtor decides to file an answer; if he does not, then the creditor - or his attorney - will ask for a default judgement.

Not necessarily. If the Plaintiff doens't think your Answer is good enough (basically), then they will ask the court for a summary judgment. They will likely file a MSJ anyway, its a typical tactic. With any luck you WILL get a court date so you can defend yourself.

What happens next if a judgement is awarded to the plantiff (creditor)? How long does it take for garnishments, etc to take effect?

Once a judgment is rendered, there is a waiting period (typcially 30 days but can vary by state law) in which you can appeal the judgment. Its also the time they expect you to make arrangements to pay voluntarily. After that, there's no telling how long it will take them to take action.

Are there any additional hearings after the judgement has been finalized to arrange for the hand over of assets, bank account numbers, etc.

If they can't find your bank accounts or other assets, then you may be called to court for a debtor's exam where you must give them ALL that info. They could do this via interrogatories which you must answer or be found in contempt.

Or would I suddenly show up at the bank one day and discover that all my money was gone?

If they find where you bank, yes that's a possibility.

Likewise, for money on a paycheck. How would my employer receive notice to garnish?

That's a little different. Your employer would be served a writ of garnishment and you must be given a copy of it, so wage garnishment should come as NO surprise.

[Shrike1070]

Ladynred, thank you for your quick and thorough reply to my questions. I have a couple of others if you don't mind:


1) Would the plantiff have reason, or the ability, to put a lein on my auto title if they already were able to both garnish my wages and seize my bank account?

2) What if I decided to file BK in the intermediate period between the awarding of the judgement and the issuance of the writ of garnishment/leins/levies? How would the stay order get to the proper people in the court? Would it go through the plantiff since they would be included on the matrix? Would I still need to vacate the judgement after BK if it never actually went into effect?

OK, I guess that was more than just a couple of questions...

[Ladynred]

1) Would the plantiff have reason, or the ability, to put a lein on my auto title if they already were able to both garnish my wages and seize my bank account?

They could, but unless you're driving around in an expensive car, they probably won't bother. Card depreciate very quickly and they never bring close to even trade-in value at auctions. If you're still paying on the car, they'd have to pay off the lien holder then pay you the value of your exemption first.

2) What if I decided to file BK in the intermediate period between the awarding of the judgement and the issuance of the writ of garnishment/leins/levies?

Bankruptcy stays ALL collection actions, including lawsuits, judgments and garnishments. The judgment creditor would be notified thru the court from your matrix. Just for good measure, I'd walk a copy of the BK case info down to the courthouse and have it filed in the judgment case file for good measure.

Would I still need to vacate the judgement after BK if it never actually went into effect?

Maybe. If the final judgment is never entered, then you may have to have the lawsuit dismissed if the creditor doesn't dismiss it during the BK process.

[Graden]

(Alabama)
Are collectors required to notify the co-signers of their debtors of impending court actions? Or can the co-signer simply be "cold-****ed" later, when pursued for payment of the amount in full, immediately?

[Ladynred]

No, they are not required to notify co-signers. However, if the situation arises from a repo, the original creditor MUST notify the co-signer with all the same papers and notices they're required to send a primary signer.

The fact is, if you co-sign, you've agreed to be on the hook if the primary quits paying. Co-signers of delinquent accounts get their credit reports dinged so there shouldn't be any 'cold-****ing'. Creditors and collectors will pursue co-signers prior to lawsuits, and if that's happened to you, then you weren't paying attention.