Chuck ignored a $5000 warrant in debt and got a $45,000 garnishment.
Updated: Sep 10, 2022
Chuck borrowed $3,000 from a loan company is 2002. At 36% interest, an unpaid debt
doubles every two years.
In 2004, he got a warrant in debt for about $5500. Since he knew he couldn't afford to pay, he didn't go to court. So the Judge hit him for the $5500 plus $1000 in attorneys fees. and the 36% interest kept running.
Fast forward to 2019. Chuck had been through some bad times--a lot actually. But was getting his life together and his credit score was in the mid 600's. It helped that the judgment fell off his credit report in 2014.
In 2019, Chuck gets a garnishment for $45,000! Chuck thought when the judgment dropped off his credit, it was legally gone. Nope. After a warrant in debt, the creditor can record it judgment in the Virginia circuit court; then it's good for 20 years. That's ten more years after it falls off the credit report.
The good news--if you can call it good--Chuck had never bought a house. If he had, the judgment from the warrant in debt would be a lien on his house, too. Bankruptcy can almost always solve a garnishment; removing a lien on real estate can be tougher.
Do you have an unpaid judgment from an old warrant in debt. Your creditor knows when your life improves. For exactly, your creditor knows when your credit score goes up. That tells them, now is the time to hit you with a lien or a garnishment.
Have a warrant in debt you haven't paid. It might be a good idea to talk to a bankruptcy lawyer, today.