How Can I Improve My Credit After Late Pays and Lawsuits
Hello CRN,
I was recently taken to court concerning a credit card debt. Unfortunately, the Attorney and I were not able to reach a reasonable agreement and he eventually "voluntarily dismissed" the case. Does this mean I can send the court documents into the three credit bureaus and have whatever was placed on my credit in reference to the lawsuit deleted? How can I use the court judgement to benefit me?
How can I use the court judgement to help improve my credit?
—T
Short answer
A lawsuit that gets dismissed does not produce a judgment entry with the court. Without a judgment entry, there is normally nothing in your credit report about the case at all, only the underlying card debt.
Key points on this page
- With no judgment entered, what should appear is the original credit card debt reported as many months late and eventually charged off by the creditor
- The same debt may also be reported separately by a collection agency or a debt buyer
- If there are multiple entries for one debt and more than one shows a balance due and owing, that is a problem, and it can be corrected
- What is actually appearing in the public records section of your report is the detail that decides the answer
- The last entry in the court record for the case matters too, because that is what establishes how the lawsuit ended
I am going to need some clarity on the background information you gave before making anything other than general comments about your credit report and the lawsuit or judgment with the court.
Were you sued and the lawsuit was voluntarily dismissed, but you still show something about the lawsuit in the public records section of your credit report? If there is something about the lawsuit in your credit report what is appearing?
Who was the creditor suing you and what is the name of the collection attorney?
What was the agreement you were trying to reach?
You mention using the court judgment to benefit you. What is the last entry in the court record for this case?
General comments:
A lawsuit that gets dismissed does not result in a judgment entry with the court. Without a judgment entry there would typically be nothing reported in your credit profile other than the original credit card debt being late many months and eventually charged off by the creditor. There is also the chance that the debt is reported by a collection agency or debt buyer. If there are multiple entries on your credit report for the same debt, and more than one is reporting a balance due and owing, that is a problem and can be corrected.
Post your answers to the above questions in the comment box below and let’s go from there.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
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