The nitty-gritty of the process will vary depending on the state where you live and the particular court in that state where the judgment was entered. That said, a summary judgment is generally considered a final judgment, meaning that the collection agency can take steps to collect from you via wage garnishment and alike.
In response, you have a couple of options. In some courts, you can ask for reconsideration -- or if summary judgment was granted because you failed to answer, that it be set aside. Otherwise, your best recourse is likely to be appealing the decision. I would strongly recommend that you contact an attorney to discuss these options.
That said, in this climate, you can often head off this whole process by either contacting the creditor, or hiring someone to do so on your behalf. Often, debts can be settled for half, or less, of what remains owing.
Yes. It is a final order and the creditor can then use that order to freeze bank accounts and garnish wages, depending on State law. You have the right to appeal the final order of the trial court.
When you file Bankruptcy you create a financial estate. That estate is “administered” by a Trustee. There are very different paths to the same outcome if you file a Chapter “7” or a Chapter “13” Bankruptcy, but the result is the same: you get rid of “unsecured” and maybe other kinds of debt.
Bankruptcy is filed by creating and filing a Petition. In the Petition you list all of your assets and income for the household; and all of the debts and obligations for that property or person who is filing.
After everything is listed your attorney applies “exemptions” to the property. Exemptions are creatures of State law in New York. Quite simply, they are the “things you get to keep” as defined by specific statues and laws.
There are many exemptions. It does not matter if a person files a Chapter 7 or a Chapter 13 Bankruptcy. These exemptions apply to all cases:
Homestead exemption: This is where the homeowner who is on the Deed and living in the property gets to protect $50,000.00 (in New York…other States Vary!!!)each (up to two) of equity in the property. So, if one person is on the Deed and they live in the house and the home is worth $50,000.00 and is paid off, they get to keep the home and no one can try and take it if they file Bankruptcy. If two people are on the Deed and reside in the home the house can be paid off and worth $100,000.00 and nothing will happen to it if they file a Bankruptcy.
Personal property: The vast majority of people do not have to worry about losing property when they file Bankruptcy. However, it is your obligation to report all property. Most people’s furniture, bedroom sets, dining room sets, clothes, etc. are normal consumer items that we list, but since the PERSONAL PROPERTY EXEMPTION IN NEW YORK IS $10,000.00 DOLLARS (In New York…check your State) we have found that it is not worth the trouble by the Trustee appointed to oversee your Bankruptcy to take and sell the property.
Take out a second mortgage to pay credit cards;
Transfer property to family members or friends to “protect it”;
Take money out of your retirement account to pay credit cards.
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Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship. The opinions expressed herein are those of the author only and the fact that he has worked as an Assistant District Attorney; State Supreme Court Clerk; Special Assistant United States Attorney (Hawaii); Assistant Cornell University Counsel or Judge Advocate, United States Marine Corps should not be relied upon to assume that these statements reflect the policy of these organizations.
You have 21 days to appeal the order. After the appeal time runs the creditor can presnet the judgment to your banks and they are obligated to take what ever money resides or enters the accounts and send it to you creditors until the judgment is satisfied.
The creditor can also obtain a wage garnishment and present it to your employer. The garnishment will allow the creditor to take 25% of your check.
You could file for bankruptcy protection to stop the judgment. If you file a Chapter 7 then the debt is eliminated. If you file a Chapter 13 then the debt is consolidated with the rest of your unsecured debt and then a payment plan is developed wherein your creditors get all, some or none of their debt repaid.
Strongly suggest you contact an attorney so you don't end up loosing all your savings and find that you no longer have any money with which to cover bills and living expenses.