Credit glossary
Judgment
A court's decision that you owe a debt, often entered by default when the person sued doesn't respond to the lawsuit.
If a collector sues and you don't respond by the deadline in the court papers, the court can enter a default judgment for the amount claimed plus allowed costs, interest and fees. Depending on state law, the creditor can then garnish wages, freeze bank funds or place a lien. The CFPB calls a judgment very hard to change or set aside after the case ends.
Judgments used to appear in the public records section of credit reports. The CFPB says the bureaus removed all civil judgments in July 2017 under the National Consumer Assistance Plan. They still exist in court records, which tenant screening companies may draw on, and they keep their collection power. Respond to every lawsuit, even one you think is wrong.
Guides that go deeper
- Sued by a debt collector: what to do in the first two weeksA debt lawsuit you ignore usually ends in a default judgment. What to read on the summons, how to respond on time, and where to find free legal help.
- The statute of limitations on debt, and how a payment can reset itA statute of limitations limits when a collector can sue, not whether it can ask you to pay. How the clock starts, how it can restart, and what Reg F bans.
Sources
- What should I do if I'm sued by a debt collector or creditor?, Consumer Financial Protection Bureau
- New retrospective on removing public records, Consumer Financial Protection Bureau
- What is a tenant screening report?, Consumer Financial Protection Bureau
- Debt collection FAQs, Federal Trade Commission
This is education, not legal or financial advice. Spot an error? Tell us and we'll fix it.