What happens when a debt judgment expires?
Summary
A debt judgment can limit a creditor’s ability to collect money after it expires, but the process varies by state and type of judgment. Creditors may renew judgments before they expire to extend their power to collect, and expired judgments do not always erase the debt itself.Key Facts
- Total household debt in the U.S. reached $18.8 trillion in the second quarter of this year.
- A debt judgment stays enforceable for years and can affect borrowers long after the original debt was due.
- When a debt judgment expires, creditors usually lose the right to collect through court actions like wage garnishment or bank levies.
- The length of time a judgment is enforceable depends on state law and the type of judgment; some last 10 years or more.
- Creditors can often renew judgments before they expire to keep collecting, following state rules and deadlines.
- Renewed judgments may include added interest and collection costs, increasing the amount owed.
- Expiration of a judgment doesn’t always remove the debt obligation or clear liens on property.
- Borrowers should check court records and state laws to understand if a judgment is still active or has been renewed.
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