Legal Question in Credit and Debt Law in New York

Re: The explanation of a claim and a judgement

If you owe money to anyone they have a claim against you for that debt. In order to collect it from you without your paying it voluntarily, they have to sue you. If they sue you and win (for a variety of reasons) they will receive a judgment from the court. THis is a piece of paper that confirms you owe the debt. THe judgment entitles the creditor (the credit card company in your case) to seek and seize assets belonging to you (with a long list of exceptions) to satisfy (pay off) the judgment. Most commonly, judgments are use to restrain funds found in your bank account or to garnish your salary. If you want to avoid the judgment you can contact your creditor and try to make a deal...reduce the amount and make smaller installment payments until th debt is paid off...do this in writing and get your creditor or your creditor's collection agent to PUT THE DEAL IN WRITING. Keep good records of payments. Also make sure that the debt is not barred by any applicable statute of limitations (laws that limit the time for your creditor to sue). Usually they have 6 years from the date the debt was incurred. (also a long list of exceptions).

Finally, any law suit brought against you is a matter of public record and will get noted on your credit history as will any judgment. THese negative listings stay on your credit history for up to 6 years. Try to avoid that. Good luck.