How to Not Pay a Judgment for Unpaid Debts
If you have unpaid debts and are facing wage garnishment, learning how to not pay a judgment is a good idea. There are a few different options available to you to solve this problem. Depending on your situation, this may include filing for bankruptcy.
Dealing with debt and filing for bankruptcy can be overwhelming. DoNotPay can help you get through the process successfully and with less stress. Here's what you should know about avoiding a judgment.
What Is a Judgment?
If you have an unpaid debt, your creditor may have the option to file for a judgment against you. If a judgment is granted, your creditor will have access to more aggressive options to pursue you for your debt. These options can include:
|Wage Garnishment||Property Lien|
|Your employer will send a certain amount of your earnings, up to 25%, directly to your creditor.||A creditor can force you to sell property like a car or real estate to pay off your debt.|
What Can You Do to Avoid Paying a Judgment?
If you're struggling with a debt and the lender is considering filing a judgment, you have four major options to avoid it.
1. Set up a repayment plan.
Depending on the amount and interest rate of your debt, you might benefit from contacting your lender and asking about an adjusted repayment plan. You may be able to arrange smaller payments, a lower interest rate or some other benefit that allows you to pay off the debt more reasonably.
2. Dispute illegitimate debts.
There are a number of reasons a creditor might pursue you for a debt you're not responsible for. You may have been a victim of fraud or have your name attached to a deceased loved one's account. If this is the case, you should dispute the debt. Be aware that this can be a challenging process that requires you to go to court.
3. Claim available exemptions.
Certain types of property and federal benefits payments are exempt from being collected by a creditor. Some common exemptions are:
- Your primary residence
- Social Security payments
- Unemployment payments
- Life insurance benefits
- Child or spousal support payments
Your creditors cannot use any of these to collect payments toward your debt. This means that if most of your assets are exempt, you may not have to pay the judgment.
4. File for bankruptcy.
If you are unable to work out a different solution, filing for bankruptcy to eliminate your debt may be the best way to avoid paying a judgment. Bankruptcy is a complicated process, but you can file on your own if you choose, or hire a bankruptcy attorney to help you. If you're seeking to avoid paying a judgment, you'll probably be filing for Chapter 7 bankruptcy. The process for this includes:
- Gathering documents
- Attending credit counseling sessions
- Filling out forms
- Going to court to file
- Attending a meeting of creditors
Easily File for Bankruptcy With DoNotPay
If you're facing a judgment and you decide that filing for bankruptcy is the right solution for you, DoNotPay can help. Going through the process yourself can be overwhelming and hiring an attorney when you're already in a bad financial position can be expensive. DoNotPay's fast, easy and successful system will help you avoid stress while completing your bankruptcy filing effectively.
How to file for bankruptcy using DoNotPay:
If you want to delete old accounts but don't know where to start, DoNotPay has you covered in 5 easy steps:
- Search for File for Bankruptcy on DoNotPay.
- Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.
- Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.
- DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.
- Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.
And that's it! Once done, the court will give you the:
- Bankruptcy case number
- Name of your bankruptcy trustee
- Date, time, and location of your meeting with your trustee
At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course!
What Else Can DoNotPay Do?
DoNotPay can help with any aspect of the bankruptcy filing process and debt management, so you can easily:
- Understand Chapter 13 bankruptcy
- Learn what happens when you file for bankruptcy
- Get a debt verification letter
- Get a 609 letter
- Learn how long bankruptcy stays on your credit report
- Understand the downsides of bankruptcy
- Learn about the costs of filing for bankruptcy
- Understand the different types of bankruptcy
If you'd like to file for bankruptcy to avoid paying a judgment, contact DoNotPay now.