If, while perusing your credit report, you discover a credit card judgment listed as a derogatory public record, this means that a credit card company or collection agency filed a lawsuit for your unpaid credit card balance and won.
Function
Judgments give creditors collection rights they would not otherwise have. A credit card company, for example, cannot simply garnish your paycheck or freeze your bank accounts if you default on your credit card bill. Winning a judgment against you gives it the right to use these tactics when recovering the debt. State laws differ, however, regarding what creditors can and cannot do after obtaining a judgment.
Considerations
A creditor must notify you after filing a lawsuit. You then have the opportunity to defend yourself in court or ignore the summons. Ignoring the summons results in the court awarding your creditor a judgment by default. If you weren't property served your initial court summons, you can apply with the court to vacate the credit card judgment.
Time Frame
Each state has different guidelines concerning how long a creditor has to enforce a judgment. Once the statute of limitations on the credit card judgment expires, the creditor can still collect the debt, but cannot force you to involuntarily pay the debt through garnishment.
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