How does a creditor get a Judgement against you?
Isabella Turner
Updated on January 22, 2026
The court enters a judgment against you if your creditor wins their claim or you fail to show up to court. You should receive a notice of the judgment entry in the mail. The judgment creditor can then use that court judgment to try to collect money from you.
How do you beat a credit card Judgement?
- Respond to the Lawsuit or Debt Claim.
- Challenge the Company’s Legal Right to Sue.
- Push Back on Burden of Proof.
- Point to the Statute of Limitations.
- Hire Your Own Attorney.
- File a Countersuit if the Creditor Overstepped Regulations.
- File a Petition of Bankruptcy.
How are judgments collected?
A simple way to collect a judgment is by deducting money out of the debtor’s paycheck using a wage garnishment. The debtor must have a decent income because both the federal government and states cap the amount you can take, and certain types of income, like Social Security, are off-limits.
What makes a person Judgement proof?
Judgment proof is a description of a person who does not have enough assets for a creditor to seize when a court order requires debt repayment. A debtor who is broke and unemployed can be considered judgment proof, as can a debtor who only has certain legally protected types of assets or income.
What percentage of judgments are collected?
Collecting from your wages The creditor has the right to collect up to 25% of the amount over the federal minimum wage that you earn (as long as it is not exempt under other rules). This only works if you are employed by someone else.
What happens if a Judgement is made against you?
A judgment is a court order that is the decision in a lawsuit. If a judgment is entered against you, a debt collector will have stronger tools, like garnishment, to collect the debt. All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords.
What can a credit card company do with a judgment?
A judgment gives the creditor the right to use additional collection methods to collect the debt owed to them. For example, if the credit card company proves to the court that you owe $5,000, a court may enter a judgment saying that you owe $5,000 (plus costs and interest). The creditor may then use the additional collection methods to get paid.
Can a credit card judgment be in your favor?
If it has provided enough evidence to show this (typically in the form of a signed credit agreement and accounting or billing statements), the court will issue a judgment in its favor, unless you have proven to the court that you don’t owe the money.
What happens when a judgment is sold to a collection agency?
Debt Transfer. Although it may appear that the original creditor sold your debt to a collection agency, if the original creditor already obtained a judgment against you, it’s more likely that the collection agency is merely collecting the judgment for the original creditor in exchange for a portion of the proceeds.
How does a credit card debt collection agency work?
Collection agencies. A collection agency is a company that the creditor hires to collect the debt on the creditor’s behalf. Collection agencies usually get paid with a percentage of the money they recover or a flat fee.
