What happens if I cant pay judgement?

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Need advice from lawyer/person with experience – I live in Texas where they cannot garish wages. I am married, have 1 daughter and another on the way and make just enough to get by. My wife does not work. We have 30,000 in student loans, 10-15 thousand in credit debts, 25,000 for our 2 cars and over 80,000 on our house. We have literally 0 equity in any of these because our interest rates were so high when we got the house/cars that we are barely paying towards principal at all. I am currently being sued by a plumber that we couldn’t afford to pay after he completed the job and it is the first of several probably to come as we cannot afford to pay our credit cards anymore because we don’t want to be late on mortgage and cars. When the court claims a judgment on me, what happens next? I already have terrible credit so does it really matter how it will continue to effect my credit?

  1. Reply
    Steve D
    May 1, 2011 at 1:41 am

    The plumber will file a mechanics lien on your house, meaning that you will never be able to sell it until the debt is paid.

    The cards will do the same thing – or even try to attach the car (which prevent syou from selling the car until the lien is paid). They can also garnish your bank accounts. Meaning if you need an account to cash your check and the bank places a hold on your check while it clears (or you have direct deposit), the card companies can get to that money that way.

    Some card companies will also try to get the judgment in a different state (the company’s home state) – which may be enforceable in Texas even though Texas has a no wage garnishment law.

  2. Reply
    timothy p
    May 1, 2011 at 2:03 am

    once the judgment is entered they will look to place liens against your property and other assets.

    I don’t like the idea of bankruptcy but in is sometimes necessary. Have you talked to a lawyer? Most will give free consultations.

  3. Reply
    May 1, 2011 at 2:33 am

    After the plumber gets a judgment he can file to lien the property/house
    under a mechanics lien or
    He can also attach any other property that you own or have in your possession.

  4. Reply
    Net Advisor™
    May 1, 2011 at 2:52 am

    I have answered this a lot over the last 3 years and my answers have been all essentially this:

    You need to talk to an attorney to help you with this.

    You are about to embark into a serious legal issue anytime you stop or seek change terms of any contract, including debt payments. The lawsuit (if you lose) can appear on your credit record and this can impact all your loans and ability to get credit or have favorable interest rates.

    Many attorneys will give free initial legal consultation. Ignore all those reduce debt scams, and get legal help.

  5. Reply
    Stephen T
    May 1, 2011 at 3:08 am

    If a court orders you to pay something you have to pay it or face contempt of court, which basically means regardless of your situation you are “thumbing your nose” at the judge. If you get charged with contempt of court you go to jail until you fulfill the court order. The only option to get out of this debt (if not ordered by a judge) is to declare bankruptcy and even then only certain debts are wiped away. For example, if you declare bankruptcy on April 1st they won’t wipe away anything from the previous few months, only old debts.

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