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How to Deal with a Default JudgmentFinding out that you have a default judgment against you can be a scary thing. While you may be overwhelmed about the implications, don't ignore the situation. It will not go away on its own, and you will need to do your part to repair your good name and credit history. What Exactly is a Default Judgment?Default Judgment Defined: A default judgment is a judgment in favor of the plaintiff (creditor) when the defendant (consumer) fails to appear in court to settle a debt. Can You Remedy a Default Judgment? If Yes, How?You may have grounds to have a default judgment dismissed if you can prove that you never received notice of the court summons. Step 1: If you find out that a default judgment has been entered, request the court paperwork immediately and look for errors such as your mailing address, notification procedures, and names and dates of people contacted, etc. Step 2: Question the validity of the debt. Typically, you are given about 30 days to object to a default judgment and, if you can prove that the debt is not valid, then you can get the hearing dismissed. If the debt has passed the statute of limitations for collections, then you may have grounds for having the default judgment removed from your credit report. However, you also need to check individual state laws to see if they allow the debt to be renewed. (In other words, does the creditor have a legal right to collect a debt that has already expired.) Step 3: Dispute the debt. If a default judgment is legally still on your credit report, you should dispute it with the credit bureau first, before contacting the judgment creditor. The judgment may be removed from your credit report without even paying it because there is a 30-day limit on validating a debt. Due to court case loads, there is a good chance that the court will not be notified of the debt within that time frame. Therefore, if the court does not validate the debt by the deadline, the credit bureau will delete it. Consequences of a Default JudgmentNo matter what, do not let a default judgment be entered against you. If you legally owe the money, you should make every effort to settle out of court. Remember, the judgment creditor really only wants the money, regardless of how they get it. The best thing for you to do is to negotiate a settlement before the court date so that it will be put on hold. Otherwise, you will pay much more for this debt in the long run. You can have your wages garnished or asset liens imposed. And, the consequences of a default judgment have a serious impact on your credit score. The statute of limitations on judgments can last 12 - 20 years at a minimum. Some judgments are renewed and can stay on your credit report forever! Don't let this happen to you...consider speaking with a paralegal from Lexington Law to learn about techniques to legally remove a default judgment.
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