Legal Question in Credit and Debt Law in Georgia

Short term probably nothing. But longer term that judgment may keep a future employer from hiring you when they run your credit, and even a decade later, once they win, they can seize bank acdounts and wages years later.

See a lawyer immediately - less than 30 days after you were sued - to see if you have potential counterclaims, or if you should file bankruptcy.

I agree with Attorney Ashman. While you have no job now (and hence wages cannot be garnished), the creditor can still try to seize assets or freeze your bank accounts unless you are solely getting unemployment compensation. The judgment will be listed on your credit file and while some employers do check (like if you are applying for a job that makes having debts/judgments a security clearance risk) then I would not be overly concerned with this. However, I would talk to any employer before you give authorization for a credit report.

Georgia law only provides limited exemptions - $21,500 in equity in real property used as your primary residence and $5,000 total for personal property. There is a process that you have to go through to file the exemptions There are more exemptions if you file bankruptcy. If you have at least $10,000 in dischargeable debt, you may want to consider filing bankruptcy.

If items are liened (like if your house has a mortgage or you are financing a car) it cannot be seized but it may depend on how much equity you have in the item. It also depends on how the item is titled and in whose name is on the lawsuit.

Judgments can be enforced for 7 years against property unless renewed. But that doesn't mean that they go away. You will not be able to apply for a mortgage loan with an unpaid judgment so it needs to be resolved at some point by either paying/settling or getting it discharged in bankruptcy.

There are things that you can do to protect yourself (like not having a bank account and going on a cash only basis or getting an online or out of state bank account or pre-paid debit card).

I also agree that you should consult with counsel if you can afford it. If you are thinking about bankruptcy, see a bankruptcy lawyer. If you have possible defenses to the legal action, see a litigation lawyer who specializes in credit card defense to file an answer if you have defenses (like statute of limitations - which is 6 years in GA from the time you last paid); or if the debt was sold to a junk debt buyer and you have inadequate proof of your responsibility for the debt.

Debts can always be resolved even post-judgment. The amount can vary, but most creditors and junk debt buyers will settle for somewhere between 50% and 80%. If you think that you may be able to come up with that and would like to try resolving the debt in a non-litigation non-banrkuptcy context, I may be able to help. Please contact me at [email protected] if interested.