Find Bad Debt Consolidation and Solutions

Passing Judgement on Debt

Bad Debt Consolidation

A Judgement debt, also simply called judgement, refers to the verdict of the court in the event that a creditor files a case against a debtor in court. If one owes outstanding debts, a creditor can take the matter to court. In case the debtor’s defense is unsuccessful, the court will issue an order for judgement debt against the defaulter. This means that the court confirms the debtor’s responsibility for the debt and requires the person to make the payment.[br]

A judgement debt can be issued against a debtor even in his or her absence. The creditor can enforce the court’s judgement for up to 15 years from the date on which it is issued. A judgement is reported on the debtor’s credit history for up to five years.

Judgement Debt: Options for Creditors to Recover Debts

If a debtor has been given a judgement debt by the court, creditors can take the following steps to recover their money:

• Request the court to make a ruling on the amount the debtor must pay after an oral examination of the debtor’s financial circumstance.
• Agree to accept a monthly installment that is easily manageable by the debtor.
• Obtain an order from the court to take a regular fraction from the debtor’s salary or bank account.
• Obtain a warrant for seizing and selling the defaulter’s property.
• Initiate proceedings to declare the debtor as bankrupt, if the amount owed is greater than $2000. This can be done before or after the legal costs and penalty interest have been added.[br]

Judgement Debt: Options for Debtors

The following are some of the options that a debtor has when s/he faces a judgement debt:

• Pay the debt. This would mean drawing out a formal or informal agreement with the creditor. The debtor must carefully maintain a copy of the agreement and the receipts of any amount that has been paid.
• Apply for the court’s permission to pay the debt in installments. However, the debtor would then have to pay the interest charges during the payment period.
• Apply for voluntary insolvency. There are several serious implications of this situation, although there are also some benefits.