Every year there are huge amounts of people that think that just because they do not work that if a creditor gets a judgment against them that it is nothing they can do. If only that was true. Let me give you some insight into this situation.

When you get a judgment against you from a creditor, they not only have the right to try to garnish you, they can also report the judgment on your credit reports and depending upon the state you live in, they can charge you interest on your account. Here is something else that can happen that people don’t think about. Check out this example.

A person gets a judgment for $10,000. Because they are not currently working, they put the judgment on the back burner. Depending upon the state that a person is living in, the interest that is charged on a judgment can vary from state to state. For example in Michigan the interest rate is 12%.

A $10,000 judgment after the first year in Michigan would be $1,200. A person that is not working may say so what, they can’t get any money from me. Three year later when they have now been working for six months, they are surprised when they discover that they have been garnished for up to 25% of their net income. This is just one thing that can happen if a creditor has placed a judgment against you. If you want help with a judgment that you have, you can call me at 313-744-5977 or e-mail me at [email protected].