How Judgments can impact credit

The credit reporting rules for judgments are different from the rules that would apply to the original debt. The Fair Credit Reporting Act (FCRA) states that judgments must be removed from credit reports after seven years from the date of entry "or until the governing statute of limitations has expired, whichever is the longer period."  A judgment can hang over your head a long time. The statute of limitations for collecting a debt using a...

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Do Judgments accrue interest?

The answer is yes.... Just about every state allows the Judgment to collect interest on unpaid monetary Judgments. The interest rates varies state by state, as well as the calculation or new rates and accrue from the date that the Judgment is entered. So if you have a Judgment that has not been satisfies, it's worth more now, than we the Judgment was entered. If you are not able to enforce and collect on your Judgment, consider consulting with a...

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Beware of Deficiency Judgments

  If you have had a property in foreclosure the lender repossesses your property, the value of the property may not pay off the loan. For example, you might owe $200,000 on your mortgage, but it bank only sells for $150,000. You're $50,000 short, that you still owe the bank, do you have that 50k to pay.. Guessing the answer is no, since you were not able to pay for your home in the first place. The lender will want full amount paid back, if...

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Controversial Florida Case Blocks Creditor from Enforcing Judgment Against Foreign Assets

Source: http://www.bipc.com/ A recent opinion from Florida's Fourth District Court of Appeal held that a Florida court does not have jurisdiction to compel a judgment debtor to turn over stock certificates located outside the state of Florida to satisfy a judgment. Sargeant v. Al-Saleh, 137 So. 3d 432 (Fla. Dist. Ct. App. 2014). While this opinion has been heavily criticized by many in the legal community, the case should serve as a warning to creditors seeking to enforce judgments against debtors in Florida. In this case, the creditor...

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Do I Need to Pay Tax on a Vehicle Accident Settlement or Judgment?

Source: www.nolo.com If you have received a settlement or judgment following a vehicle accident, you're probably wondering, “Do I have to pay taxes on that money?” The short answer is, “In most cases, no.” However, that is not a hard and fast rule, and the answer depends on the nature and circumstances of your settlement or judgment. It is important to know that only your tax advisor can give you tax advice. The comments in this discussion will help you formulate the appropriate questions to present to your tax advisor. Only by discussing...

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Court Rules Debtors Can Sue Collectors Under More Onerous State Laws

The West Virginia Supreme Court of Appeals affirmed last week that consumers can sue third party debt collectors under the state’s Consumer Credit and Protection Act (WVCCPA) – a statute that carries greater punitive damages for violators than the federal Fair Debt Collection Practices Act (FDCPA). The ruling came June 14th in the case of Linda Barr vs. NCB Management Services Inc. and HSBC Bank of Nevada.  It’s the final say on the issue unless the state legislature changes the law, which is not expected. However, if a new law were passed,...

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