The full explanation
With a judgment, depending on your state's law, the creditor may garnish your wages, place a lien on your home or freeze your bank account. A default judgment can sometimes be set aside if you have valid reasons for not appearing.
An example
Ana did not open some court papers about a credit card debt. Because she did not respond, the court entered a default judgment. Now she asks a free legal aid organization for an appointment to learn whether she can ask to have it set aside.
You will see it in…
- The court summons, with the deadline to respond
- A letter from the court or the collector that mentions a judgment
- Your credit report, where a judgment can appear as negative information
