1. Cloud on the title of your Homestead Property
If you own a home, a judgment can cloud the title on your Homestead. In Texas, your homestead is protected by the Texas Constitution from a forced sale of the property from this type of creditor, however, it will make it near impossible for you to ever sell or refinance your home if a judgment is not released and removed from the property.
2. Garnish, Freeze, or Take your Bank Account
After a judgment is taken, the creditor can garnish and take from your bank account, even months or years later.
3. Seize "Non-Exempt Property"
A creditor that has taken a judgment against you can seize your non-exempt property and sell it. Usually, a judgment creditor will obtain a Writ of Execution from the Sheriff's office to allow the search for non-exempt property that can be seized.
4. Credit Reporting of Judgments
A Judgment is reported as a Public Record, normally at the very top of the listings of bad credit history on your credit report. Judgments are devastating to a credit report score. Although most bad debts are removed from your credit report within 3-7 years, a Judgment remains for TEN (10) years, or more, if it is renewed.
1. Fight the the lawsuit BEFORE the creditor takes a Judgment
2. Settle the Debt before and after the Judgment is taken
3. File for Bankruptcy Protection, eliminate debts and judgments.