A judgment is an award of money given to a plaintiff in a civil lawsuit. A judgment is a non-criminal legal award, usually damages. Damages are most often money amounts.
A judgment is received by the plaintiff when their lawsuit is successful. A judgment can be awarded by a judge or a jury. In some cases, a judgment is automatically awarded because a defendant fails to appear in a civil lawsuit.
A judgment usually remains valid for five to seven years. The time frame varies across jurisdictions. In some states, for example New York, the judgment is valid for up to twenty years. There are a number of ways a plaintiff can collect their court judgments.
Judgments can appear on an individual’s credit report under the Fair Credit Reporting Act (FCRA). The amount of time it will appear on a credit report varies by state. Judgments are not reported directly to credit bureaus but they are documented in county court records.
County court records are reviewed by credit bureaus. A judgment is treated as a negative action by the credit bureau and will lower an individual’s credit score.
One example of a judgment may be a default judgment. In a civil lawsuit, a defendant is required to file an answer to a complaint within thirty days.
If the defendant fails to do so, a default judgment may be issued against them. A default judgment occurs without the court hearing the case and is an automatic win for the plaintiff.
What Is a Dormant Judgment?
After the time frame defined in a jurisdiction, a judgment expires. After a judgment expires, it becomes dormant. This means the plaintiff or creditor has waited too long to take action to collect on the judgment.
Just because a judgment has lapsed, that does not mean it has gone away. Under the Fair Debt Collection Practices Act (FDCPA), a creditor may contact you and ask you to pay on the judgment.
If a debt collector contacts you and gives false information about how old the judgment is, they may be violating the FDCPA. A creditor may also request the court revive the judgment so that action can be taken to satisfy the amount owed.
For example, if an individual leased an apartment for a year but only stayed a month, they may be liable for the rest of the year’s rent. In most cases, a lease can be terminated with notice as specified in the lease, but sometimes individuals do not follow those guidelines.
The debtor has likely moved and did not appear for their hearing and the apartment complex received a default judgment. The court may enter a judgment against the debtor for the eleven months of rent.
If the apartment complex does not take any steps to collect their debt for several years, the judgment becomes dormant. The length of time varies by state.
It may happen that after ten years, a new manager is hired and tries to collect old debts. That manager will have to petition the court to revive the debt.
Eligibility: A judgment becomes dormant once a specific period defined by the relevant jurisdiction has passed without the plaintiff taking any action to collect on it. The exact duration will vary by state.
Once this period expires, the judgement will be considered dormant. This means the plaintiff can no longer use methods such as wage garnishment or seizure of property to collect the debt without reviving the judgment first.
What Happens When the Judgment Lapses?
After the judgment becomes dormant, or lapses, the plaintiff cannot collect on the judgment by any of the following methods:
- Wage garnishment
- Seizing property
- Seizing or garnishing money held in bank accounts
- Requiring the defendant to appear in a debtor’s examination hearing
Just because a judgment lapses, does not mean it disappears. The debtor may still be obligated to pay what they owe at a later time. The plaintiff can also contact them and request that they pay their debt voluntarily.
State Variations: The process for reviving a dormant judgment may vary significantly by state. These variations can include differences in the statute of limitations for judgment revival, the specific procedures for filing a motion to revive, and the defenses available to the defendant.
It is important to consult with a local lawyer who is familiar with the laws in the relevant jurisdiction in order to understand the requirements and procedures for reviving a dormant judgment.
Can the Plaintiff Revive the Debt?
Most states allow a revival of judgment. In most cases, the plaintiff has ten years from the date the judgment lapses to file a motion to revive the dormant judgment. Depending on the state, a judgment may be revived multiple times.
Process/Steps: To revive a dormant judgment, a plaintiff will usually need to file a motion with the court, as noted above. This motion will ask the court to reactivate the judgment, which allows the plaintiff to pursue their collection efforts again.
The defendant will then have an opportunity to respond to the motion and raise available defenses to the revival. The court will then decide whether or not to grant the motion and revive the judgment.
Costs/Fees: The costs and fees that are associated with reviving a judgment may vary depending on the jurisdiction as well as the specific court that is involved. These may include filing fees for the motion to revive in addition to potential attorneys’ fees. Typically, the party who initiates the motion, the plaintiff, will be responsible for paying the initial filing fees.
Evidence/Documents: In order to support a motion to revive a dormant judgment, a plaintiff will usually need to provide documentation related to the original judgment, such as a copy of the original judgment, proof of the amount that is still owed, and records of any previous attempts to collect the debt. The defendant may also have to provide documentation if they are contesting the revival, for example, proof of settlement or payment.
What Can I Do To Fight a Motion To Revive the Judgment?
If a defendant wishes to fight a revival of judgment, they can file an answer to the motion to revive. The answer should include a legal justification why the motion should not be allowed. The defendant usually has three legal defenses to a motion to revive:
- The statute of limitations has passed
- The debt was paid in full
- The debt was settled as agreed upon
The Importance of Hiring a Lawyer: Trying to navigate the dormant judgment revival process without having representation from a lawyer can present several pitfalls. The revival process can involve complicated legal procedures and deadlines that may be difficult to understand and adhere to.
Without having legal guidance, an individual may miss important deadlines, fail to present effective evidence, or make a procedural error that jeopardizes their case. Having assistance from a lawyer can help ensure that all of the necessary steps are taken correctly and that the individual’s rights are protected.
What Does “Vacate the Judgment” Mean?
A defendant may file a motion to vacate a judgment. If a defendant files a motion to vacate, they are asking the court to withdraw the original judgment because of a legal reason. Reasons may include:
- A clerical mistake in the judgment
- New evidence that justifies a new trial
- Fraud or misrepresentation by the plaintiff
An example of a vacated judgment may occur if a default judgment was erroneously entered against a plaintiff who was not liable for the debt. This may occur when individuals have the same name.
The incorrect plaintiff may notice a judgment on their credit report that they are not liable for. The court would then correct the judgment to be entered against the proper plaintiff. This is one reason reviewing your credit report periodically is important.
Do I Have Any Other Options To Avoid Having the Debt Revived?
One way to avoid having the debt revived is to file for bankruptcy. Bankruptcy is a legal proceeding which allows a debtor to eliminate debt or to set up a payment plan to pay off their debt over time.
After a bankruptcy proceeding is completed, the debtor is no longer liable for the debts they incurred. The bankruptcy court will enter a discharge order which gives the individual a clean financial state. However, the bankruptcy can remain on their credit report for up to ten years.
Bankruptcy can have many long lasting consequences. It should only be used during a time of extreme financial hardship. There are many issues an individual should consider before choosing to file for bankruptcy.
Chapter 7 Bankruptcy, or liquidation bankruptcy, could be used by a defendant to discharge all legally dischargeable debts. There are rules about who qualifies, how to file and what type of debts that can be discharged.
If a defendant has the means to pay off their debt, based on the previous six months of income, they are not eligible to file for Chapter 7 bankruptcy. It is important to consult with an attorney to make sure bankruptcy court rules are followed.
A second option is filing for Chapter 13 Bankruptcy. Also known as wage earner’s bankruptcy, Chapter 13 bankruptcy is a way for a borrower to restructure their debt and make affordable payments.
Chapter 13 bankruptcy is usually for individuals with higher incomes who wish to keep their property. In this type of bankruptcy, some debts may be eligible for discharge. However, other types of debt may require payment in full through a payment plan, usually set for between three and five years.
Risks/Penalties: If a creditor tries to enforce, collect, or place a lien on an expired civil judgment without legally reviving it, they can face legal risks including permanent loss of the debt, liability for consumer damages, and lawsuits.
This can be a violation of the federal Fair Debt Collection Practices Act (FDCPA), allowing a debtor to sue for actual damages, statutory damages, and attorneys’ fees. Additionally, a creditor may face contempt of court for engaging in this type of conduct.
Should I Talk To a Lawyer Regarding My Dormant Judgment?
If you have any questions regarding a dormant judgment, consult with an experienced civil lawyer. Your financial lawyer will help you evaluate your situation and will review your options to fight a judgment request. They will also advise you regarding filing for bankruptcy.
In just a short time, you can complete the submission process on the LegalMatch website and find a civil lawyer in your area who can help resolve your dormant judgment questions or concerns.
