Your Lawsuit’s Effect on Your Personal Finances
The most obvious effect the lawsuit will have on your personal finances is the money you personally spent on the suit. You may have gone deeply into your savings—or even gone into debt—to pay for it. However, the suit can have other effects on your financial life as well.
If you lose a lawsuit, the amount of the judgment goes onto your credit report. Why? Because the judgment amount is a debt, just like the debts you may have on credit cards or for the mortgage on your house. The amount of debt you carry, compared to your ability to pay it off, affects the decisions potential creditors make about how much money they can safely lend you. This is one reason that recording a judgment ...