Friday, April 20, 2007

What Is a Judgment for Nonsecured Credit Card Debt?

A judgment for unsecured credit card debt is an entry entered on a civil court's docket that signifies that a credit card company has prevailed in its lawsuit against the cardholder for recovery of the default balance owed.

Obtaining a Judgment

    A judgment may be obtained either after a trial on the merits or by default if the debtor fails to answer the credit card company's complaint after it is filed in court.

Significance of Judgment

    Once a judgment is obtained, a creditor may avail himself of the postjudgment collection procedures afforded by law. The credit card company is designated as a judgment creditor and the cardholder is characterized as the judgment debtor.

Postjudgment Collection Procedures

    A judgment creditor may initiate, with prior approval of the court, a number of legal remedies in order to enforce payment of the judgment. These include garnishing a judgment debtor's wages, attaching his bank account, and/or placing a lien against the debtor's real property.

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