What Is a Judgment and What Happens After
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A judgment is an official document that explains the court's decision about claims made in a lawsuit. In a debt lawsuit, the judgment will decide whether the person being sued has to pay money to the other side and how much. The judgment may also say whether one side has to pay the other side's attorney fees or the costs of starting the lawsuit.
However, having a judgment doesn't mean the losing party has to pay right away. In a debt lawsuit, the judgment does not order you to pay, and you cannot be sent to jail or charged with a crime for not paying. It is up to the person who won the lawsuit against you to try to collect the money they are owed.
What Happens After a Judgment?
If the person or company who says you owe them money (called the "creditor") has a judgment, they have the legal right to collect the money you owe.
At this point, they may have other options besides contacting you and asking you to pay. Creditors can take money directly from your paycheck or bank account. They can go after your personal property, including your home, your vehicle, or other personal belongings that may be valuable. Going after your paycheck, bank account, or personal property is called "garnishment."
How Long Does a Judgment Last?
- In Oregon, a judgment lasts for 10 years and can be renewed for another 10 years, meaning it can affect you for up to 20 years.
- Interest may continue to be added to the debt owed, increasing the total amount owed over time.
Understanding how judgments work and their long-term consequences can help you make informed decisions about how to respond to a debt lawsuit or handle an existing judgment against you.
What Happens if the Other Side Gets a Default Judgment Against Me?
If you don't respond to a lawsuit by the deadline, the person or company suing you can ask the court for something called a "default judgment." This means the court automatically decides in favor of the creditor because you didn't respond.
The person or company suing you for a debt now has the legal right to collect the money they claim you owe, even if the amount is incorrect or the debt isn't valid.
They can take actions like:
- Taking money from your paycheck
- Freezing your bank account
- Going after your property
The judgment can appear on your credit report, making it harder to get loans, housing, or even employment. Interest may be added to the amount you owe, increasing what you have to pay over time.
If a default judgment has been entered against you, there may still be steps you can take.