Florida Credit Card Judgment Penalties

A credit card judgment occurs when a credit card company or collection agency sues you for an outstanding credit card balance. If you do not show up at the hearing, or you show up but fail to present a valid defense to the court, the judge will grant a judgment to the plaintiff. Each state's laws differ concerning the rights a court judgment grants to a creditor. In Florida, creditors have a variety of additional collection privileges following a successful lawsuit.

Wage Garnishment

In Florida, a judgment creditor can garnish your wages. Wage garnishment is the process by which your employer withholds a percentage of your paycheck to pay a creditor. The garnishment will continue until the judgment expires ,or you pay off your debt. A creditor can request a wage garnishment by obtaining a certified copy of the judgment and submitting it to the court, along with a formal request for a writ of garnishment and a $100 fee. Once approved, the creditor can deliver the writ of garnishment to your employer to initiate the wage garnishment process.

Bank Levy

Bank levies are similar to wage garnishments in that they are a method of involuntary debt recovery that only credit card companies and collection agencies have access to following a judgment. To levy a bank account in Florida, a creditor must apply for a writ of garnishment and serve the garnishment order on your bank. Your bank will then freeze your bank accounts, preventing you from accessing them, and withdraw the full amount you owe to send to your creditor. If your bank account has exempt funds, such as child support or Social Security payments, you must notify your bank of the exempt funds in order to protect them from being seized.

Property Lien

Under Florida law, creditors who win a judgment can place a property lien against your home or any other property that you own, such as your vehicle. As a title encumbrance, the lien effectively prevents you from selling the property without first paying off the judgment. If you fail to pay the judgment, the creditor then has the right to seize your property and sell it as payment for the unpaid credit card bill.

Credit Damage

After the court enters a judgment against you, the credit bureaus will pull the record of the judgment from the court's public records database and enter it into your credit report. The judgment will negatively impact your credit rating and can cause you to be turned down for loans, credit cards or insurance in the future. The Fair Credit Reporting Act states that a judgment may remain on your credit report for your state's full enforcement period. In Florida, judgments expire after 20 years. Thus, the credit card judgment will remain a damaging part of your credit record for up to 20 years after the lawsuit.