Credit card lenders and their debt collectors obtain a large number of judgments each year. By obtaining a credit card judgment, the lender gains the ability to use judicial process to sell the borrower's property or seize money out of bank accounts. The lender with a judgment can attempt to collect for 10 years or more. While credit card judgments themselves are seldom an impediment to bankruptcy, judgments that have become judgment liens required special considerations.
Credit cards are one of the most common forms of unsecured debt. They are revolving lines of credit, where money is borrowed and repaid on an ongoing basis. Oftentimes, a combination of extraordinarily high interest charges and many fees will result in debtors having credit card balance far greater than the amount they originally borrowed. Occasionally, the age of the credit card debt and what was purchased will matter in bankruptcy proceeding.