If a creditor has obtained a court judgment, they can legally freeze certain finance-related accounts with your name on them and/or place a lien against real property that may be owned or inherited by you. Through the process of a court judgment, a creditor will legally be able to take out the amount due to them and refund whatever is left after all their costs. It is important to note that, though a creditor may obtain a court judgment to secure what is owed to them, they do not always do this. Even when they obtain a judgment, they may or may not exercise their right to place a freeze or a lien against your assets. You should consult a nonprofit consumer credit counseling agency to review your credit file and discuss resolving past debts before the situation gets to the point of legal judgments against you. We would like your feedback on this Personal Finance Frequently Asked Question.

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