Can a Judgment Be Removed From My Credit Report?
I had a Judgement entered on feb/2012 for a $400 medical bill. It increased to $800 once it was sold to a debt collector. The collector reached out to me to make payments but I could not due to lack of funds. Long story short. A judgement was served to my then boyfriend at the time (feb/2012) because he opened my door and confirmed I lived at that residence. Missed court date so the collector received a default judgement against me. Started making payments of $100 every month until I lost my job again. I haven't heard from them since. I made 2 or 3 payments total after the judgement was in place.
I want to fix this debt but I want the judgement to be removed from my credit report. Called the collector 2 months ago informing them I would make two split to pay balance in full within 1 month. They declined saying they would gladly accept the payment but will not remove the judgement they will only said judgement settled on my cr. The firm is a building not far from home maybe 20 min ago with an office of like 5 ppl. Not sure if i can go in face to face to make arrangement again with my same terms or speak to another agent and or person in charge. Not sure if its something i can do on my own to meet my terms or if i need to get my own attorney to do the negotiating for me. Really want to take care of this before it increase any higher than it already is or worse/wage garnishment. btw I live in M0.
How can I get a judgement removed off my account if I pay the balance in full? Is this something i can do on my own if told
—Jai
It sounds like your main goal is to resolve the debt and get the negative off of your credit report. Unfortunately, you are fighting a losing battle with the approach.
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Getting court judgments removed from your credit report.
The life time credit cycle of a debt that goes unpaid looks like this:
- 30 days after you miss a payment to a creditor, like a credit card bill, you should see a thirty day late pay on your credit report if the item appeared there already and is updated regularly.
- 60 days after a missed payment you now would have 2 payments skipped and are considered 60 days late.
- As long as you continue to miss payments month by month you are being reported as an additional month late.
- Ultimately the creditor will charge off the debt and take an accounting hit. The charge off is often then reflected on your credit report.
The life cycle of credit damage.
After missing payments on unsecured (and most other debts), your account may take on some additional qualities after charge off.
5. If a debt collector/debt buyer has the account and reports it as a collection on your credit report, with a balance due, the charge off from the original creditor remains, and the new negative will be reporting a balance due them, not the original creditor.
6. If you are sued for collection and judgment entered in the court, the judgment can turn up in the public record section of your credit profile.
Most of the negative credit impact from missing bill payments does not get to #6. One through 5 has a 7.5 year shelf life from the date you missed your first payment. There are some shenanigans that occur with credit reporting and debt collection accounts being reported with more recent dates, and even instances of multiple entries showing up for the same debt and more than one reporting a balance due, which is not right because you cannot owe the same debt to more than one place.
I am pointing out the above as a brief outline for later readers of this page. A little perspective of what happens to credit reports along the way when a bill remains unpaid is a good foundation for what I have to share about getting judgments removed from credit reports.
When it comes to credit reporting and debt collectors, debt buyers, or attorney’s collecting a debt.
Their is a hierarchy to who can do what when it comes to credit reporting. Debt collectors, debt buyers, and attorneys that collect debt cannot make your original creditor change what the bank is reporting to the credit bureaus. And even the original creditors have no real influence over the court records once the judgement is entered.
The judgment is a matter of public record. The integrity of that record is maintained by the court. You would need to get the judgment vacated, or the judgment creditor to somehow miraculously want to undo their suing you (doesn’t happen).
Unless you have a good argument for getting the judgment vacated, and are willing to spend the money on an attorney who knows what they are doing when it comes to accomplishing something like this, or dedicate a hell of a lot of personal time and energy to learning how to do it for yourself, the judgment will stay in the record with the court.
Judgment debt has a 7 year shelf life too, but the time only starts ticking from the date the judgment was entered.
Is this a big deal? Not for most people. Getting the judgment paid, even for less than the balance owed if that is agreed to, will result in a satisfaction of judgment being filed. You can use the court record to rapidly update your credit report yourself if you are dealing with the judgment in order to get a home loan approved, or refinance a current mortgage.
Be sure that any pay off agreement, whether in full, or for less than the judgment balance, includes filing the satisfaction with the court. There is no shortage of feet dragging when it comes to updating the court.
Paying off or settling the judgment debt can be done on your own.
It is always best to discuss legal matters with an attorney who practices in a specific area of law. In this case, one with credit reporting or debt collection experience. Hiring one to help resolve an 800.00 debt may not make sense unless you want to battle the judgment itself.
With a smaller debt amount such as this one, you can get the payment in and avoid garnishment. Just be sure that any agreement to pay includes in clear terms that upon receipt of payment, or the full agreement being met, a judgment satisfaction will be filed with the court.
Improving your credit report after payment setbacks and judgments.
I will have a series up at the beginning of the year that details credit report recovery and tips for increasing credit scores after bouncing back from a tough financial patch. In the mean time, if you can answer the following questions in a comment reply, I can give some more feedback:
What are your immediate financial and credit goals (buying a home, car, other)?
What other negatives appear on your credit report beside the original payment default related to the judgment debt, and the judgment itself?
What positive items are appearing on your credit report right now?
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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, and is a regular contributor to several personal finance websites.
What if I go to court, lose my case and have a judgement entered but paid it in full and years later the attorney files that a mistake was made and I overpaid? The court responded that judgement was reported as fully satisfied so no further action could be taken.. I previously overpaid in a suit for monies I didn’t owe according to the plaintiff and they tried to make it right. What do I do?
You may want to talk to an experienced consumer law attorney debt collection attorney in your state. You can find some using the drop down menus here: https://www.consumeradvocates.org/find-an-attorney
Years ago my husband got a vehicle loan in Missouri. Later moved to Texas and continued making payments. Then he got laid off. Living with family and unable to make payments he allowed the vehicle to go back. Several years later he received a notice to show up in court in Arkansas. Working again but unable to afford to take time off work or pay travel expenses he ignored the notice. We were looking to buy a house and a judgement showed up on his credit for over 9,000. Of course no one will give us a loan now. We can’t afford to pay the full about or hire an attorney or travel to Arkansas. Is there anything we can do ourselves to deal with this? Doesn’t really seem right that they can file in another state that my husband has never lived in.
It is not right. What was the date the judgment was entered in the court?
Also, it sounds like they already knew you were in another state, but please confirm that in reply too.
I’m not sure what date it was entered in court. The date on the report is empty.
The notification was delivered to my husband in Texas
Call and consult with one or more of the attorneys I just email to you in Arkansas. They all have the experience you will likely need to look into vacating the judgment for being sued in the wrong state.
The debt was paid in 2011, received court documents and a judgement satisfied letter. I have forwarded copies of these documents to the big three credit agencies. It is 2017 and my credit report has not been updated.
Did you send a dispute to the credit bureaus? Did they respond to your dispute within 30 days? If any of the bureaus responded, what did they say?
Hi….I have incurred some medical bills, that unfortunately I ended up with a judgment against me. The question I have is none of these medical bills are in my husbands name and the judgement is in mine and his name. Can you tell me if I can at least get the judgement removed from his name, since he did not incur the debt I did? We are in New York State.
Talk your situation over with an experienced debt collection defense attorney in New York. I can email you a list with the experience you need if you like?
Our home was recently foreclosed on. We had already left the home and were living in another state. Our daughter was staying in the home and when the house was sold at auction, the new owner filed an eviction on us and our daughter. She moved out of the home and now we find out we have a default judgement on our credit for an eviction from a property we didn’t live in. How can we get this removed from our credit? What do we need to file in the courts in California to do that? We can prove we lived in another state for a year and that our daughter should’ve been the only person evicted, not us. We need this off of our credit. Thank you.
Check out the interview I did with this California debt collection and Fair Credit attorney. Call him and see what he suggests.
I went to the courthouse yesterday to try and file a motion and the clerk told me all I need to do is contact the attorney who handled the eviction and have them remove it from our Experian. I called and left a very detailed message with the receptionist and am awaiting a response from the attorney. I found out that we would’ve had to file a motion within 6 months of the default so we are still within our time limit, although I am hoping we can solve this with the attorney instead of going to court. Thank you!
Hi Mr Micheal, This is Ram, Have a Derogatory mark (public record) in my credit report like below.
Date —
Status Filed
Amount $984
Classification Legal Item
Type legalitems
It happened in 2012 March.
I sincerely request you to give me an advice to overcome this (I am willing to close that payment with penalty with the Apartment complex owner (so far I am out of USA since then came back home country due to family emergency that time till now not been to USA) but to avoid this and want to be good and want to have clean report. what I have to do to overcome with no derogatory in my credit report.
Appreciate your kind advice.
Thanks
Ram
It is difficult to get the collection removed if it is legitimate. You can resolve the debt and get it updated to show as a zero balance and resolved. That will allow you to get credit and financing needs met still.
Hello. I’m trying to buy my first home. I recently paid off a small judgement and received the satisfaction papers to give to the court which I’m having sent to the Court. I was served at an old address and my mail was forwarded from my x landlord. Also the original judgement was 451.00 and the lawyer firm charged me 612 instead. I have 3 other derogatorys for medical bills and an old utility bill from 2012 which I intend to pay off since it’s in the same state we are trying to buy in. And we need gas and electric. I have opened 3 credit cards and I’ve been perfect with payments andonly using 10 percent or less of my credit limit. But the judgement is what’s scaring me here to get a house. What do you suggest sir?
You are already doing what you need to. Once that judgment is updated to show as satisfied in the court record, and those other 3 unresolved debts are update to show zero balance owed, you would likely qualify for FHA loan underwriting.
Hello. My husband and I are trying to settle a debt that has a judgment on it and then was sold to several different collection agencies. What should we do?
Just wanted to add that the judgement occurred in 2012.
Who is collecting on it now? What is the name of the plaintiff on the original judgment? How much is owed today?
A previous landlord obtained an eviction/default judgment against me back in 12/2012. I didn’t receive notification until after the court date, and I haven’t made any sort of payment to this day. From what I understand the statute of limitations on a judgment can continue to be renewed every 10 years by the creditor. If the creditor does renew/extend the judgment does the judgment also get extended on my credit report, or would the judgment be removed from my credit report after 7 years from file date regardless of whether the judgment is extended/renewed? If I were to pay the judgment does that renew the date of last payment/7 year period that it will report on my credit report like it would for other debts?
The judgment will fall off after 7 years of entry regardless of whether you pay or don’t pay. Nothing resets that. But just because it is off your credit does not mean they cannot collect on it through all legal means available.
Non judgment collection accounts are not allowed to reset for a fresh 7 year credit reporting period just because you make a payment either.
HI MICHAEL
Iam from SOUTH AFRICA I just found out that i have a judgment on ma record and i was about to be summoned i have received a letter from the court of sherif but after that matter i manged to contact the stored which placed that judgement and started to do some paymemt for the first time. So i just need to understand how will i work it out on this judgment or how long will take to be removed on my name
Thank you
Judgments are typically removed 7 years after entry in the court record. You can get the judgment updated to show as paid or satisfied long before the 7 years is up, which will still help you accomplish credit and financing goals.
As I try to work out a lump sum type of settlement with Bank of America via a law firm/debt collector – is there anything else that is negotiable or, not necessarily negotiable, but something I should/can ask for with a settlement?
For example, I received a summons – if I settle this in advance of moving forward further in the court? Is it possible to have this removed and no longer visible from the state repository that is searchable by the public? Or, will it remain, but say withdrawn or something else?
And, is there any changing what is reported on my credit report? Or, will it say, “Settled – Less than full balance”? Is it at all likely that this could phrased differently? Or, would they ever indicate settled in full?
While I’m anxious to have this all settled and move on, I’m also trying to reduce the damage and clear the trail behind me – including public & credit records.
Thanks for your information and advice.
If it were me, my negotiations with Bank of America would include dropping the case. That will prevent any judgment appearing in the record, and avoid one being on your credit reports. But the court is a matter of public record. I am not sure the case getting dropped would remove any trace of it. Talk to an attorney that practices in your particular court about that.
Your credit report will typically be updated to show a resolved collection with a zero balance owed. The notation about paid for less, paid in full etc., means little. It is the zero balance you want and need to start to heal your credit. BofA will not do anything other than the minimum legal requirement in this regard, but that’s fine, as it is all you need.
Hi I have a judgement on my credit unpaid for 7 yrs from past landlord. I put myself in treatment for alcoholism at the time I was renting from them 2009. I was in treatment so I never got court date so now I moved to Indianapolis from Minnesota and my son and I can’t get an apt! I’m on SSI and work 25 hrs a week what can I do?
How much is the judgment for? Settling the debt to get it to show paid or satisfied may be the best option. You may benefit from reading this article about renting with bad credit.
I had a loss of income and a judgement was filed i have paid over 7000 dollars the amount of judgement was 7000 they say i still owe 6000 what can i do [edit: email removed]
What was the interest rate set by the court in the final judgment order? What was the date the court entered judgment? What state are you in?
I found out recently that my inability to get a loan is because of an eviction on my credit and the enormous charge that accompanies it. I was evicted in 2012 halfway through a 13 month lease – the apartment was less than $700 a month. Yet somehow the judgement on my credit report is for over $13,000. This alleged debt is not only excessive for the circumstance it is damning to my finances, it has made it exceptionally difficult to find a safe place to live.
I have no other delinquent accounts on my credit report aside from this gigantic item. My credit score is just below average and I cannot get a credit card without the line being secured, nor a car loan without a co-signer. When trying for a car loan last year I was told by the bank that it was the high dollar amount of this judgement that caused me to be automatically declined for any credit.
I do not understand how they could report that I owe them this amount of money. It is not only financially insurmountable, it is disproportionate to the lease commitment I still had and any other reasonable charges and fees besides.
What can I do to challenge the enormous amount I am said to owe for this eviction?
The time to challenge the amount you are sued for is when sued. After the judgment is entered you have few options to un-ring that bell.
Were you aware of the lawsuit as it occurred?
You can often negotiate a lower payoff on judgment debts. That will bring the cost down and help open up credit options again.
Hello Michael,
My name is Brenda and I have a credit card judgement on my credit report that needs to be cleared or vacated. I am looking to qualify for a home and on a fixed income. There are several resources available for me. However I must have this judgement removed. It is from Capital One originally 750.00 now 1,3200.00 with the creditor.
The debt is from 2009 and has been charged off but remains on my report score.
Please help me resolve this situation.
Thanks much
Brenda
It can take 7 and one half years from when you stopped paying for a debt to come off your credit. A judgment has 7 years from the date entered in the court record.
There is not much to do to vacate a judgment unless you have some legal arguments to bring to the table. Even if you do, I would suggest working with an attorney that has debt collection defense experience. That would likely cost more than the judgment.
The way to clear a judgment is often going to be settling it so the court record is updated to show paid or satisfied. You can still get a home loan with it showing that way.
I just for the first time got my credit report on my own and found that 3 yrs past a landlord died and that he has placed a Judgment against me. He had Alzheimer for 8 yrs prior to dieing so my question is how can a dead man put a judgement against me for something i didn’t do and wasn’t even living in the home that he and his wife had i and my family had moved out leaving behind a another tenant and there belongings and we moved out of state it wasn’t till i looked my credit report to rent a place and found a judgment from a dead man. How can i have this removed?
Is it possible that you left while still being on the lease and that the tenant you left behind caused a reason for the suit, but you go thrown under the bus too? Can you contact the tenant you left in the house and find out?
You should talk with an experienced debt collection defense attorney about any legal challenges you may have. What state is this old residence in?
I had a judgement against me and my wages were garnished. This has been paid off, for about 3 years now. On my credit report it still looks as though I owe the full amount. It does not look like I have ever made a payment on it. How do I go about getting this corrected?
Are you referring to the credit reporting entry of a charge off, or the judgment that is showing on the public record section of your credit reports?
Hello!
Thank you for this good information! I have someone I am assisting with credit, and she is owing a large debt to a former landlord. A judgement was filed in 2009 with a total debt owing at $4,615. The individual I am assisting is homeless and does not have the financials to pay the debt. The organization that holds the original debt is not willing to reduce debt. What is the best advice for the individual? Should she attempt to make small payments, in order to show good faith to prospective landlords? Or should she leave the debt untouched and hope for the statute of limitations to run out. WILL this judgement AND debt fall off in 7-10 years? We are in WA State.
Thank you!
The judgment will fall off the credit report in 7 years from date entered in the court. It is still there though, and can still be collected upon. Washington state judgments are in effect for 10 years and can be renewed for another 10 years.
I am not a fan of small payments on judgments as there is usually judgment interest being charged, so the smaller payments are not making a dent in the balance.
If there is a way to come up with half the balance owed as of today I would focus on saving up for that and trying to settle the judgment for less.
I had an ambulance bill and was not aware it was not paid fully by my insurance company because I never received a bill or anything from the Insurance company stating otherwise. I only seen it when I checked my credit rating and Seen a D for payments where I was always an A. I paid it however once took my case stated is the bill was in my maiden name when I shift with the creditors that were collecting. In short I just like to know how long before this comes off of my credit
Typically this kind of thing stays on your credit for 7 years. But paid medical bills have very little impact on your credit scores anymore.
Thanks for the info. I have a question, I’ve been trying to find an apartment but have been turned down d/t a public record judgement on my credit report. The judgement was paid and I was never evicted, is there anyway to get it removed?
I cannot currently recommend any sure shot way to get the judgment removed from your credit reports. It is there because it exists in the court record. Does it show as paid or satisfied on your credit reports?
You may want to check out some tips for renting with bad credit.
This article is awesome…..thanks so much for the info.and quick reponses. I live in alabama and was in Wisconsin previously. I did have a judgement against me for I think around $5000 from an unsecured loan in WI. It had dropped off my credit. I am in the process of settling abother judgement that still appears on my credit for less than is owed.
My question is, will the judgement that is no longer on my credit be brought up or found when we start our home buying process?
Any unresolved judgment is highly likely going to stop your home loan process in its tracks, and regardless of whether it is too old to stay on your credit reports or not.
How do I start going about finding where to settle this judgement? The only thing I know of is the original creditor.
Start with the court record. Who is the named plaintiff? Who is the collection law firm that handled the case?
For several years I have been trying to find the best way to handle some debt. I am divorced for almost 4 years now. I have all of the kids, but still pay a hefty spousal support to my ex. I wanted to file bankruptcy, but didn’t follow through with it, although I still think that’s my best bet. Since then I have had a group of lawyers challenging things for me and they have taken quite a bit off of my credit report. Being that I have all the kids and still pay a huge spousal support monthly, 5 creditors went to judgments (some two years ago and some 3 years ago). Three out of the five were removed from one of the credit bureaus (the rest to follow), but isn’t it possible for the courts to still act on those even though they have been removed? Of course, also since then one of the judgments was recently acted on and now they are taking a huge garnishment out of my check and I’m still looking to file bankruptcy anyway. I’m just trying to find the quickest path to get back into a mortgage.
Filing chapter 7 will prevent a mortgage for only 2 years if you use FHA financing. Can you come up with the money to settle and pay all of your debts, especially the judgments, in three years? How much do all the judgments add up to?
Hi,
My husband and I are in the process of purchasing a home. I was made aware tonight of a public record judgement against me in the sum of $1697 from a credit card when I was 18. I haven’t made a payment or anything in 8 years because I had honestly forgotten about it. My husband was in the military for the last 5 years and we have not been in the country or our state of Louisiana until a couple months ago.. I had zero knowledge of this being turned into a lawsuit or anything- I was NEVER served any type of papers on this and no idea of where to even go from here… if I was never served can I request it be removed or vacated? Or am I forced to pay a debt I do not think I fully owe? I do remember having the credit card and I do remember owing like $600 and making payments. But I was a teenager and jobless going to college I quit paying (stupid I know) but I know I didn’t owe that much!
It can be a real struggle to get an 8 year old judgment vacated. And even if you had a decent shot (you don’t), you want an attorney to help you, and the fees for that could easily be more than the debt.
I would look at negotiating this for less then the balance owed, but before you do that, check out this video about settling old debt when you are trying to buy a home.
I have a judgement on a credit card from my company that was closed in 2011 here in new mexico – the last payment was on 11/11 – the judgement was filed against the company and my self – however the amount is wrong and I was never served or notified at all – I recently found out about this because i was checking my credit report and I have never been notified by this law firm here in new mexico – has the time lapse on this
Find out who they served and at what address. You can do that by looking up the certificate of service in the court record. Once you have that info, give me a call at 800-939-8357, ext 2, or submit the “talk to Michael” form in the right column, and we can set up a consult time.
Trying to get a va loan. I have a judgment 1000 11/15, 2 delinquent 6/16, one open consumer loan, no open credit cards, only debt is a closed credit card (950 balance of 1000) limit, consumer loan balance is 3500 of 5000 original, charge off capital one credit card 250 from 10/14. Collections 1800 from 1/16. Make about 5500/month what do I do first
I would keep all active accounts current, and bring any that are only a month or three behind fully current (making up the late pays). I would settle any charged off debt for lump sum settlements, including the judgment.
Hello,I have a judgment placed against me on August 29,2016. I received court papers from the company that brought the account. From the original company I had financing through. If I make a arrangement to make mthly payments towards the judgment. Will that still effect me getting a mortgage?
FHA loans can still go through when you show 3 or more on time payments on a judgment debt. That may not be an option with conventional financing.
Hello I am trying to inquire about a judgement that was filed on 11/09 by original creditor and has now since been sold. Will the judgement fall of in 7 years or only if I pay off or come to agreement with collections or creditor ?
I have called them and they told me they have charged it off and cant find anything with my ssn.
Who is the original creditor involved?
Who is the named plaintiff in the lawsuit that was filed in 2009?
A judgment from 2009 will fall off of your credit reports sometime in 2016. But just because it is not seen on your credit does not mean it went anywhere. You can still end up with a lien, bank account levy, or a wage garnishment. And an unresolved judgment will typically turn up if you apply for a home loan and stop that from going through.
Hello
I have a 15k public record that I would like to settle for a lower amount and pay to show satisfied on my credit. Should I contact the original company, the collection company or courts? Or all three. Also after its paid will it be removed or just show paid.
Thank you.
Desperate to move on.
When did the judgment get entered in the court? If it was in the last year or two you are likely looking at dealing with the original attorney that sued. Call the original creditor and ask who they have the account with. They will tell you. If they pulled it back you may be able to deal with them.
Once paid, a judgment will show satisfied in the record. It will no be removed. The judgment drops off your credit after 7 years.
Thank you for the insight and direction.
Hello,
My situation is a little different. I have paid off the judgement against me 3 months ago but she has still not filed a satisfaction of judgement with the court. I’ve been told she asked her assistant to send it off. Then she sent it again and she doesn’t know why it wasn’t received by the court. I have confirmed the address with her multiple times. The court says there is no backlog for this type of paperwork. They said when they come in they immediately process them. I need to know how to get her to do her part because I’m being told that I can’t even bring in our emails, the signature on the certified mail that was send with the payment and the proof of payment(in certified funds) from my bank is not enough because they have to have it in writing from her before they can consider it satisfied. I’m trying to buy a house and they will not move forward without the court showing this has been taken care of.
File a complaint against the attorney with her state Bar Association. 3 months is a bit too long to update the court.
You may also want to file a debt collection complaint with the CFPB against the attorney.
For any later readers, 90 days after payment clears is enough time for a satisfaction of judgment to be filed. If it has only been 60, I would hold off on pushing the complaint button.
Hi,
I was taken to housing court on 9/2015 for a non payment case for rent arrears. I answered in person and got the court date for 9/17. I also appeared and a stipulation agreement was made to pay in full by 10/31/15. It was paid on 10/20/2015. The case was supposed to be closed however on 8/6/2016 i pulled up my credit report to see a judgment dated 9/15 from civil court. I also check my credit report on the monthly basis and that was never on there.
I then contacted the management and they said everything was paid and they are not sure how it got to civil court. In desperation i asked for a satisfication of judgment from the management company and they gave me one however problem is that this was paid already in housing court but the attorney probably forgot to close the case. What should i do now? Transunion deleted it however equifax is giving me problems! Please help
You might want to file a debt collection complaint against the attorney with the CFPB. You can also look to file a state bar complaint against the attorney.
That is only if the judgment was filed in error. And I would call the attorney to see if they can/will correct any error they made. I would give it a week or two.
Good morning Michael Bovee my question is this I was in court with my landlord for a judgment of $8200 of that it been paid but I don’t know what to do because it’s now a public record on my credit report I’m still living at the same home paying rent to the same landlord please i need help how to deal with this matter because I wanted to buy a home.
Were you sued, a judgment entered in the court record, and then later on made arrangements to pay?
What is the date the judgment was entered in the court record?
When is it you would like to be purchasing a home?
Are there any other negatives on your credit, or unresolved collections?
I also would like to know that since the collection agency send my payment Back what do I do? Also I don’t understand how the judge approved it without getting proof from that as to what I was asking for proof of me owing it. Is it too late to get the judgement vacated since it was 2012? I wish I could have the judge throw that out only because I don’t believe I owed 2,000 dollars. When I had that card I know someone had stolen the one I had before and I lost my job but had a protection plan at a time. I wish I did more research before. I think it would not make since to file bankruptcy I rather pay it if they were cooperating I figured they went out of business. Idk what to do. I am trying to buy a house and my clock is running out 🙁
It makes NO sense to file bankruptcy over this amount. And it would put you off your home ownership goal by typically 2 to 3 years.
What state are you in?
Missouri
Hi Michael! ! Please point me in the right direction. I can’t afford an attorney I would like to handle this myself but need to know how first. I have a judgement against me. I thought I was taking the right path messed up by missing to submit the answer I requested that the other party just provide proof of what I owed because no way it was all of what they claim. It was a credit card and actually I didn’t know but at the time it was passed sol but I didn’t know until now. I was sued in 2012. So since I didn’t turn the answer In time the judge send me a letter that I had to pay. After that I made payment arrangements with equable finance for Chase and they agreed that I pay 50 buck a month I made all payments on time. I say the 3rd payment they send back to me so i figured at the time that i didn’t owe them anymore because it was not showing on my credit report anymore. Now I’m trying to buy a house I notice they are still there and what’s crazy is they had me writing the money order to litow and pech which is not the same as the name on my judgement paperwork.
How much is owed today? Have you already applied for the mortgage?
I still owe about $1500 and honestly since it was years ago and when they send my payment back silly me was thinking I didn’t owe them anymore and I never heard from them since. Also I didn’t see it on my credit report anymore but it’s still in my record with the courts. How can I settle with someone that is not cooperating?
It does not sound like they are not cooperating, but that they had a records snafu and stopped trying to collect. You have to reach out to them to negotiate a payoff. The amount you look to save from negotiating in this situation can be impacted if they see you are trying to buy a home, which they can find out with a look at your credit reports.
I have a problem with some of how the lawsuit went down to begin with. I am sending you an email with contacts for experienced debt collection defense attorneys in Missouri. You can call one or more of them and run through what happened back then and see if there are some suggestions they make to challenge this. Otherwise, you are looking at negotiating the settlement, and getting that updated to the court record, before you home loan would go through.
Hi Mr. Bovee,
My situation is difficult so I would really appreciate all the help I can get. So back in March of 2010, my boyfriend was involved in a car accident with my vehicle. We both have the judgement for $8,542.79 plus $239 in court fees. We never received any papers for this so this is very confusing. But obviously I want to resolve this and move on with my life. We are trying to buy a house but need to fix this ASAP! What steps would you recommend?
Who got the judgment against you? What state are you in?
The judgement is from the insurance company/person that was driving the vehicle my husband was in an accident with. This happened in Illinois.
If you were not in a hurry I would want to explore the fact you never got served or knew about the law suit. Ho much of a hurry are you in? Can you raise 60 percent of the balance owed?
Hi Mr. Bovee,
I had lost a case against Midland Funding at the JP level in Texas three years ago. I filed a pauper’s appeal in Disctrict court and I had a summary judgment against me because Midland claimed they didn’t get an “answer” from me though I had dated letters sent by certified mail to both Midland and the court. I decided to file bankruptcy which dismissed the judgement in District court. Now I still have Transunion showing the JP level judgement though the Texas JP court told me they would have destroyed my file as soon as it was settled in bankruptcy at the district level two years ago. Is that enough info to ask Transunion to drop the JP judgment off my credit report? I have paperwork from the district court that says dismissed in bankruptcy but of course no paperwork for the JP level since it’s gone. Midland funding shows on both judgements of course. Both Equifax and Experian have already dropped the JP judgment from my credit report.
Linda
Have you filed credit report disputes? If so, what was the result of that?
Next I would look to file a credit reporting complaint with the CFPB.
Hello Mr. Bovee,
Thank you so much for your informative website.
I have 2 judgments against me.
One by LVNV FUNDING LLC in April 2010 for $8217.94 + Judgment Interest:$864.57 + Costs:$75.00 which totals $9157.15
The other by CORNERSTONE EQUITY PARTNERS INC in October 2009 for $3,856.28 + Judgment Interest:$13.31 + Costs:$20.00 which totals $3889.59
In both instances, I was not aware I was being sued because I never got served any court papers. However, those debts were probably mine. But I think the amounts were off.
In August 2014 my bank account was garnished for the amount of $3688.04 on the LVNV FUNDING case.
The same law firm (Protas, Spivok & Collins) filed both cases on behalf LVNV and CORNERSTONE.
I had called the offices of Protas, Spivok & Collins. They told me the accounts had been transferred to INVESTINET.
So I called Investinet, they then told me the accounts have been transferred to ASSET RECOVERY SOLUTIONS and NIAGRA CREDIT SOLUTIONS
My wife and I are hoping to purchase our first home really soon.
About a month ago I got the services of an attorney to try to negotiate a settlement for both of the judgments. She had initially advised that we should file to vacate the cases.
After getting in touch with Asset Recovery, they did confirm that they now hold the Cornerstone account but that the balance is now $6559.80. We offered to give them a lump payment of $2000 to settle but they rejected and countered with an offer of $4591.86 to settle this case.
My questions are:
Do these collection agencies/debt buyers have the right to charge interest on a debt that already had interest on it at judgment since they presumably bought the debt cents on the dollar?
Shouldn’t their offer be based on a fraction of the original judgment amount?
If I successfully vacate the judgments, will that hinder my being able to buy a home?
Your insights and advice will be really appreciated.
Thanks
Judgment interest is set by the court and governed by state law. So ye, it is normal for interest to be added post judgment. What state are you in?
Their offer should not be based on a fraction of the judgment amount. What debt buyers pay to acquire a specific debt will rarely have anything to do with what you can settle for. And less so if there is a judgment.
If you vacate the judgments it will be as if they did not exist. That would be the best outcome for your home buying goal.
Niagara Credit Solutions is often pretty easy to deal with. Where does that one stand?
Thank you for your reply.
I live Maryland and the cases were filed in Maryland. I am still waiting for a response from Niagara Credit Solutions. The Asset Recovery case is scheduled to be removed from my TransUnion report in 9/2016 and the Niagara case in 3/2017. Only the Niagara case is showing up in my Experian report and it scheduled to be removed in 4/2017.
The judgments will not go away after they drop from your credit reports. You are still at risk of lien, levy, and wage garnishment as each would apply in your state. If left unresolved, those judgments will prevent future financial goals, like a home loan, even thought they are not seen on your credit.
2012 had a rental judgement against me and was paid in full by one wage garnishment. But even now on credit report doesnt say it was paid or satisfied.. Do i just go to county clerk and show pay stub with garnishment or do i need to contact plantiff?
How long ago did this occur?
You want the other side to file the notice of satisfaction with the court. You can talk to the court clerk about your options, and sometimes you have to move things along yourself.
I would talk to the attorney you paid and see what’s up with them first. If this is not straightened out quickly, and it has already been 2 or 3 months since you paid the judgment, I would file a complaint with your state bar association against the attorney, and also file a CFPB debt collection complaint.
Hey there Mr. Michael Bovee, I noticed your post and just want to first off say thank you so much for helping these people and hopefully myself included, you don’t have to do this it is very much appreciated.
My situation involves me trying to buy a house. I was getting the pre-approval process started on my owning a home and it came up that I have a public record from a circuit court from when I was in college 6 years ago for the sum of 3,500.00. How would you recommend I to go about handling this situation to get it resolved? Does waiting the 7 years for the debt to fall off work in this situation? If I pay it off, can I get an agreement from the court to remove this incident from my credit report? I want to go ahead and get the ball rolling on trying to get a home, what is the quickest and best way to go ahead and get this taken care of?
You cannot wait for this to roll off your credit report and get on with life like you can with non court debts. The lenders still find the court records and will hold up approval on home loans and refinancing.
At this point I would get a copy of the judgment from the court and look to negotiate the best settlement possible in order to save money, and get the court record updated to show it has been satisfied.
What was the debt about?
Hey, thanks man. The debt was from Credit cards.
Settling a credit card judgment that old is pretty common. I tend to target 50% of today’s balance (there is often judgment interest added) as an optimistic, yet still realistic outcome.
Who is the judgment creditor (name of plaintiff that sued)?
It doesn’t say and I’m looking from Credit Karma. And to be honest I really just cant remember, it’s been a long while now,,,
You can often pull up court records on line now, so try the courts website. If they do not make that available you will need to call or go to the court for the info.
I will do that now, thank you so much man, I really appreciate the help.
Hello Michael,
I currently have a judgement entered against me in Indiana. This is the third owner of the debt, and I want to make sure the information they sent me is sufficient to continue the judgement. I want to settle and get it over with because the negative marks should be falling off of my credit report next year, but I’m also afraid that if I pay, it would start the 7 years all over again. I could really use some advice if you have the time. They’ve frozen my bank account which had student loan money in it. I asked for a sooner court date because of those funds being ‘exempt,’ but have had no luck yet. I’m really between a rock and a hard place, so any advice you could offer would be extremely helpful. Thank you so much.
You cannot restart the credit reporting clock on a judgment by paying or settling it. It will still fall off, but if left unresolved, will still be collectable through wage garnishment, bank levy, or property lien. An unresolved judgment will still come up when you try to buy or refinance a home, even when it is no longer on your credit reports.
Who is it that owns the debt now?
Who is the collection law firm handling it?
I have a bunch of negative accounts on my record. I never had a credit card, never any outstanding balances, there’s several items that I have not known anything about. Do you think someone else is using my identity, and I’ve never received any information contained by any of these creditors, just happened to look now that I’m trying to purchase a home?
Identity theft happens more than many people realize. Check out this site from the FTC about what to do next: https://www.identitytheft.gov/
I was recently contacted that I a being summoned to court in another state. When I was young and foolish I had enrolled at a college and didn’t drop my classes in time. The amount they are saying g I owe is about 800 more than the original debt. I am in the process of trying to rehabilitate my credit. How will a judgment effect it and will it help as I am paying it off? Since I am not in the state to go to court, what steps can I take to try to get it possibly lower?
I would first look to get the case dismissed for being in the wrong jurisdiction. Then deal with negotiating something out of court. Post the state you are being sued in and I can email you attorney contact details of lawyers that have practices that focus on debt defense.
Who is it that is suing (name of plaintiff)?
Hi I had a judgment on Brazioria county , Texas on 1/24/11 from my HOA and was satisfied by my paying in cash over 19000 in court to the sheriff , he gave mi a receipt, but the attorneys from the HOA did not file a satisfied form until 7/1/2016 and the judgment still on my and my wife credit as unpaid and satisfied on the court public record , it has affected my credit as a result we can’t get credit , I’m trying at this time to get student loan for my kids as a consigner and been denied and paid hi interest on other credit since , how can I get the judgment remove from our credit and can I sue the attorney and association for not filing the satisfied judgement that cost me to paid higher interest rates on my loans since 2011?could you email me thank you
You will want to contact an experienced debt defense or FCRA attorney in Texas about what your options are to pursue the attorney. If the satisfaction is filed with the court as of last week, you should be able share that with the DOE for the plus loans. It take some time to update to your credit reports organically. You can dispute the entries with the credit bureaus and upload or send a copy of the satisfaction the court now has as part of your dispute. It can often get corrected quickly that way.
Hi Mr. Bovee,
I have a judgement on my credit report for $565 from an eviction in 2013. I called the court to pay the full amount and they said I needed to pay the plaintiff which is the apartment complex. I contacted to apartment complex, spoke with the manager (and plaintiff) and stated my intention to pay the amount of $565 that is shown on my CR. We set up an appointment to meet at the apartment complex and she has a court document from 2013 that has a much higher amount because it factors in court costs and interest. She says that regardless of what the credit report says, she can not release the judgement until I have paid off that amount. I never actually received a summons or letter or however they notify you in TX so I never went to court. I didn’t know about the judgement until applying for a loan pre-approval. I paid the $565 that shows on my credit report and I have the receipt plus a copy of the money order with everything filled out and all signatures. So where do i go from here to get the judgement removed?
You typically want the other side to file a notice with the court that the judgment is paid or satisfied. If you did not pay the full amount of the judgment, and that often will include the fees and costs, plus the interest on the judgment amount that the court sets, you are not going to be able to get the record updated in the way you need to in order to get your home loan through.
You do not get the judgment removed per say. You get the record updated to show it is paid. That will allow your credit report to be updated too, but you can make progress on your loan even before the credit bureaus are updated (using the court record). You can get your loan through with a paid judgment.
I took my little brother to a dentist appointment back in 2011 because they said he was getting anesthesia and of course he can’t drive himself home. Me being young and naive, I signed a document (thinking it was to ensure he had someone present to take him home) that I later found out was me taking responsibility for any unpaid medical bills. At the time, my brother was insured and 18 (they swear he wasn’t of age but he was) and won’t provide me the document I signed. I found out I had a judgement on my credit report because I do not live with my family and no one tells me about mail that comes in my name. I found out because I was trying to purchase a home and when they ran my credit, it showed up. On my report it says I must pay $610 but the dentist office said it’s $641 and also said I have to pay them, not the court. Is this true? I wanted to buy a house and this ruined it.
If you are confident your brother was 18 at the time I would file a debt collection complaint with the CFPB. People are hearing back on those in a matter of weeks.
I know the balance is low, but I would not pay something like this just to get the home loan through. I do understand why that is an appealing thought though.
I am in the middle of closing on a house (June 10th is the date). My credit score was 785 when I applied for the mortgage. Now a public record has appeared on my report from 2014. It’s been paid in full since 2014. My bank said they do soft credit inquiries through the closing process to watch for any changes to my credit score. My credit score has now dropped to 730; Am I at risk of the bank not approving my loan due to this new public record? Or is it OK since it shows it’s paid off?
I think you will be fine, but who is the lender you are working with for the home loan?
MB Financial Bank
Talk to the loan officer you are working with at MB Financial and see what they have to say about this. If the rate changes you could shop for a better one.
I have a judgement on my credit since 2012 from an appartment I had. The apartment complex has had 3 different owenrs since then. Is there any way the new owner of this property could write it off? Is it too extensive to have done, too much stress? I could pay it but not all of it. The balance was actually for 3500. the judgeent is for 1700. What direction should I go, This is the last thing on my credit that I need to remove and also I have paid 3 other debts but they are still on my credit report showing as negatives. I have asked them to please remove the negative and to update all 3 credit agencies and it has not been done, but the accounts are settled. What would be the best thing to do for all of this?
DO the 3 settled accounts show as paid collections? I want to know if the people you settled with updated your credit reports to show them as a zero balance owed now. And if they have, that is really all they are required to do. Getting someone to delete the negative is not all that common, but also not all that necessary depending on your goals.
The judgment is not something the new apartment owners can just remove off your credit. That is a public record. You are likely looking at having to settle the judgment and getting it updated in the court record to show satisfied. Have you tried to negotiate the balance down already?
hi, 2 judgements have been taken off the credit file, on 4/16 and the other 5/16. Will the credit card holders come after me again.? Judgements were filed in 2009. I’m in Ct
Just because the judgments are deleted from your credit reports does not mean they go away or become uncollectable. You are still at risk of wage garnishment, bank account levy and property liens, and in many instances for 20 years or more in your state.
I live in texas, also where I went to college. After I graduated I was hit with the issue of finding a job, thru the whirlwind I tried to pay stuff as well as I could basis. Some things were late, etc. Fast forward a few years to 2012, I have all credit card debt paid off and my student loans in rehabilitation and going fine, I get served with papers to appear about state/federal grants that turned into loans bc I didn’t graduate in time. Me thinking it was for the loans in rehab, I foolishly ignore it. Fast forward to 2016, I have a great job, credit score in the 730’s, apply for a mortgage loan to buy a home and BAM, they tell me about this public record judgement from 2012. The issue I have here is, should I pay it off or just let it drop off my report in 3yrs? The judgment is for $12k. The worst part is that I was never contacted ever again about any payment arrangements or anything to indicate this was part of my credit report record. I would have gladly taken a monthly payment plan option if it was offered. I don’t even know who to contact for this, or if I should, I’ve read that if you make Contact they can renew the judgment? Need some good advice here please. Love the site!
Are you certain these federal student loans Nic? If they are it can be tough to negotiate much of a reduction.
You will want to resolve the debt one way or the other regardless of it being on your credit reports. You will not be able to finance a home with an unresolved judgment. It will hold you up because it is public record even when it is too old to be on your credit.
Confirm who the named plaintiff was on the original summons and complaint with the court and let’s go from there.
Hi Michael,
I really appreciate all of your information! Here is my current situation. I got divorced in 2009 and became a single mom of 2, in Illinois.
I was recently considering purchasing a house, and found out about 2 judgments against me. One was from a Target Visa, filed 7/2012 for $7900, and the other was a Capital One card filed 4/2010 for $1600. I knew my credit took a hit during my divorce, but honestly, I was not fully aware of all of the accounts my Ex had opened in my name. There are a few other smaller accounts that I had settled or paid off prior to contacting the mortgage broker, and still a few left to tackle.
I have some savings that I was planning to use for a down payment. Obviously, my goal is to settle these for the lowest amount possible so that I can start saving up for the down payment again. I contacted the collection company on my report for the Target account, Portfolio Recovery, which referred me to Blatt, Hassenmiller, Liebsker & Moore. I call them, and they tell me the Target balance is now $10700.00, but they will settle for half, and they have another account of mine as well. I thanked her for her time, but told her I wasn’t in the position to pay that amount right now, we didn’t discuss the other account, but I assume it is the other judgment.
The smaller accounts I settled were for about 20% of the balanced, but I’m not sure if a judgment works the same way? In your opinion, what do you think is the lowest they would accept on this balance? And if they have both, maybe they can do a combo deal or something?
If/when I do settle with them, will they make me pay upfront or can I ask for something in writing first to show what we agree to? And..what do I agree to, that they will update with the court as satisfied?
Thank you in advance for any help on this!
Not all debts settle for 20%… far from it. But when you are trying to negotiate debts that reached the court, 50% is an optimistic, but still realistic target.
You should be able to get Blatt Hassenmiller to give you 50% off the other judgment too (or real close to it).
You do want to get everything in writing before you pay. Be sure to read more about that here: https://consumerrecoverynetwork.com/debt-settlement-letters-agreements/
You can also prepare yourself better for negotiating judgment debts by reading up about it here: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
I have a judgement on my credit report from a junk debt buyer (Hanna and Associates). I still have a small balance. They were sued by the government and have to pay $3.1M in damages. Since that happened, do I still have to pay off my judgement?
You can learn more about how your case may be impacted by reading the consent order here.
Maybe I just have no idea what I am reading, but I didn’t see anything for previous suits they have filed. Am I missing it or am I out of luck?
You should seek a legal opinion, but nothing I know of in the CFPB action against Hanna and Associates would get you off the hook from needing to pay the rest of, or otherwise resolve the judgment debt.
If it were me I would look to resolve the judgment debt, get the court record updated, and get that behind me.
In applying for a home loan I learned that I have an unsatisfied judgment for Arrow Financial from 6/2010 for $3076. I contacted the court and it appears to be for a Providian Credit Card. I assume the debt was sold to Arrow – both companies are no longer in business. I have no record of this debt or any knowledge of this Judgment. The court confirmed they have no record or affidavit of service for the Judgment. The Judgment is also listed under my nickname “Kim” and I always use my legal name “Kimberly”. I have disputed the judgment with all 3 credit bureaus and they are removing the judgment from my credit reports. However the mortgage company is saying the judgment must show as satisfied per the title company. I don’t want to pay for a debt that I don’t think is mine.
Where are you located?
My husband has a judgement against him in Maine for $485 from a now defunct oil company who filed for bankruptcy and restructured. The trustee is the one listed on the judgement to deal with, but he refuses to meet with us and basically called my husband a low life on the phone. We contacted the attorney that did the restructuring (happens to be a friend of ours) and said he couldn’t do anything – it has to be released by the trustee. This is the only thing holding us back from a mortgage. Is there anyone else we can legally deal with to get this removed? We have no problem paying for it. There’s just no one who wants to take our money. Any help is greatly appreciated. Thanks!
You may want to look at filing a complaint against the trustee with the DOJ.
I recently disputed a judgment with the credit card company and they have it deleted, but this information still shows in the public record. How can I have this removed?
Credit card companies cannot delete judgments, but they can delete their own collection entry.
What is your dispute about the judgment, or what is the premise for it to be deleted?
Hello. I recently was given notice of a wage garnishment for a small claims judgement that had been filed against me for an auto loan back in 2002. The original judgement shows it was entered in 2002 and then it was renewed in 2012 before the SOL ran out in California. Now in 2016 they are trying to garnish my wages. If I can make a payment arrangement with the creditor and they agree to stop the garnishment, can they start reporting the judgement on my credit once I start making payments? A judgement has never showed up on my credit which is why I wasn’t aware that I had one. I just don’t know if I start making payments, whether they will have the right to begin reporting this 14 year old debt.
Judgments only report for 7 years from the date of entry. That time was up years ago. They do not get more time to show on your credit than that regardless of whether you pay or not.
As you know though, the judgments can still be enforced.
I’m trying to purchase my first home and after the prequalification I was told I need to resolve two judgments and about four collection accounts. The debts stem from accounts I had in 2007-2008. I also have student loan debt of $90,000+ that is in income based repayment.
My question is should I attempt to pay those accounts even though they are reaged debts that initially went to collections in 2007-2008? Or should I play the wait game or should I press the issue to have them removed by filing a complaint with them?
Call me for a consult Yasmin. You can reach me at 800-939-8357, choose option 2.
You may only need to resolve the judgment debts. Those are what is likely holding up the loan process, and it does not matter if they are not on your credit reports. Judgments turn up as part of a public record search.
I can dig deeper when we speak, but I would encourage you to reach out to speak with debt collectors that are not on your credit and not part of a court judgment. If there are collectors showing on your credit that should not be we can cover some actions steps to resolve those too.
Thank you for your support.
Can I ask a quick question?
I settled a judgement and paid $500 of the $680 original amount last year (April ’14)
I had to fight to get this record showed as PAID with Experian. After I proved it was paid, this record is still haunting my credit report.
The fact that it still says PAID and is ON my credit report is hurting me in more ways than one.
Please tell me what I need to do to get this record OFF my credit report completely.
Do I need to hire a lawyer and get it expunged?
Any advice appreciated!
Thank you!
-Rob
You typically cannot hire an attorney to get a judgment expunged or removed from the court record. You can make sure that the courts show your judgment as paid or satisfied, which ultimately leads to your credit reports showing same, but you have to wait out the 7 years for the judgment to drop off.
What are your current credit and finance goals?
Hi I have a judgement on my credit report how can I talk to the attorney to settle for a lower amount?
Who is the judgment creditor? What is the name of the collection law firm that handled the case? How much is the judgment for?
You want to be careful when negotiating judgment debt if your goal is to save as much money as you can in the process. You are welcome to call me for a consult at 800-939-8357, option 2 rings to me. I do have an article up about how to approach negotiating a judgment.
Do you have a specific credit or financing goal you are looking to accomplish that the judgment is holding you back from?
Michael,
There is a Civil Judgement against me in Texas for an apartment lease in the amount of $6187. I have tried to settle it with the creditor and have spoken to their attorney but he has yet to respond. He said that he would speak with his client and call me back. That was a week ago, after two weeks of no response via e-mail. I am wondering if he doesn’t respond, can I somehow challenge the judgement and have it vacated or dismissed off my credit report, similar to the way the credit bureaus delete inaccurate or non-responsive debts from credit card companies.
Also, I am an Inactivate Real Estate Agent and have to either have a payment plan in place or the judgment satisfied by July to reactivate my license. What can I do if he doesn’t accept a payment plan or refuses to enter a release of judgement with the court, can I sue for non-performance? As I know to get any agreement in writing.
There is a little bad blood and I think the creditor or attorney sniffs that I have plans and either wants to prevent me from achieving them or just give me the run around and charge more attorneys fees. I could be wrong.
What is your best advice to settle, satisfy and or remove the judgment so that I can be a Real Estate Agent again?
Vacating a judgment requires a limited angle or strategy. It is not commonly done. What reason would you have to try to vacate? It would be best to run your situation by an attorney with debt defense experience to see what is viable. What is the name of a large city near you? I will email you contact info to some I know with the experience you need.
More often than not, settling the judgment is most recommended. Can you come up with 50 to 60 percent of the balance owed? How long will that take?
Hey Michael
My goal is to purchase my first home. I was able to have a judgement removed yesterday from my Transunion Report. They had the wrong information on it so i disputed it over the phone. Now I’m trying to figure out what would be the best strategy to have the same judgement removed from Equifax and Experian credit reports.. Both reports show errors on them. as far as date and amount and I was thinking about using the letter that Transunion is sending me to show their findings when trying to validate the judgement. As far as other items on my credit…I have about 8 or 9 medical bills in collections….6 are from this year and I’m applying for assistance to have those paid off and 3 are from about 5-6 years ago(I’m also considering paying those off) I have a little under 60,000 debt in student loans that are in deferment(thinking about maybe undoing that and start making payments)….???… I have one secure credit card for $300……an old unpaid electric bill for $400 from 2011 and a balance of $100 owed to another company that’s is set to fall off my reports in 2016. Wondering how paying off any of these accounts(medical/other) would effect my credit scores. I also was wondering if you know about fico 9 and what lenders may be using it? Also do you know how much my scores could increase without the ($3000) judgement on there???
I am not aware of any mortgage lenders using FICO 9 yet.
If you are disputing the judgment debts on your credit reports with the purpose of being in better shape to get a home loan approved, you are likely under the wrong impression of how that works. Mortgage underwriting will find the judgments. They are part of the public record even when they are too old to show on your credit reports anymore. Unresolved judgments, whether showing on your credit or not, will prevent home loan approval.
Unpaid collections of virtually any flavor can prevent loan approval. You will want to resolve all of them (does not matter if you pay in full or settle for less than owed), and get that updated to your credit reports. Paid or resolved medical debts weigh less on your credit scores these days.
Given your state goal of getting a home loan approved I would use available funds to resolve collection accounts and judgments before bring student loans out of deferment.
How much is the judgment?
Michael,
We have multiple liens on our house from defaulted credit card debt. How do i get a list of ALL the liens on my house, just in case we get some resources with which to negotiate settlements?
Your county recorder should be who you can go to in order to get a listing of liens and encumbrances on any specific property. If you have not moved around much you can often look up your name and get a listing of all judgments in your county court, but that is not always the case, and not all judgments result in property liens being filed.
2200.00 Judgment with capital one, scheduled to remain on my credit report until August 2016.
What is my best course of action with this judgment? Should I still attempt to pay it off? If so, do i call Capital One directly?
It was good to speak with you on the phone Lisa. Keep me posted with what develops on your Capital One account.
I have a judgement from a real estate deal and the plaintiff has died with no heirs. The judgment is from 2010. How do I get rid of this judgement that I never deserved? Thank you for taking the time to answer the above questions there’s a wealth of information to be found there.
What state do you live in?
How much is the judgment for?
well the thing is that my husbands credit is around 480 i dont know how much will his credit score increase with one satisfied judgement and the other vacated. the lady that is currently helping me stated that i dont need to pay my medical bills “because it doesnt hurt the process of buying a home”. if i pay them will my credit increase? she stated that i might b able to get the loan under my name i honestly dont know how. i have no knowledge of credit and when i do try to search on the topic many people state different things.
Which credit reporting agency has your husbands score at 480? What do the other two have his score at? FHA underwriting typically requires a 580. What are your scores?
Yes, your husbands credit car improve significantly once collection accounts are resolved.
Paid medical collections often do not factor. Small unpaid medical collections can sometimes not factor, or are not reported on your credit.
How many medical collections appear on either of your credit reports?
I honestly dont know… when the lady that is helping us pulled his credit she said his credit is 480 something. then she told me mines is 547. we both have about 7 medical collections together. I have about 4 other ones that are from tmobile and sprint. them i have a student loan that was paid and closed. i just reported today that updates on both judgements. i dont know how long will that take. we are going through a hard ship and we were hoping to buy a home because its much cheaper than to rent, should i focus on the other ones first and then tackle the medical bills? my husband has on auto loan for about 7 months and has been paid on time every single month. thats y we wanted to use his credit because he atleast have a loan out.
Sorry I have 5 medical collections (which two of them are reported twice dont know why) my husband has only one and the two judgements.
and sorry AGAIN i just saw that my husband has two more old judgements that were satisfied.
In order of priority I would focus on making sure all updates are reporting correctly and updated to show paid/satisfied.
I would then focus on any unresolved debts that are showing as collections. If those are all medical debts, start tackling them either by settling for a lower lump sum you negotiate, or paying them off.
Paid medical does not impact credit scoring like it once did.
It sounds like you will accomplish your goal of buying a home through an FHA type of program. You just have to wade through resolving unpaid accounts and be patient a little while longer.
Ok so I’ll try to settle everything on my credit little by little because to be quite honest we don’t make much money. We actually took out a loan to pay the judgements. But thank you for all your time and help. You are very much appreciated.
I have a question. on Credit Karma it shows that a medical collection dops my husbands credit almost by 50 points. when i remove it will it go back up? hospital agreed to remove it once i pay it.
If the account at issue is the only thing that happened to drop his credit score, removing it would likely bring it back, or close to it (but so long as there were not other changes to his credit).
yes, that was the only thing that changed last week. i am going to settle it for $75.00 n pay it hopefully this friday. They said they will remove it within days since i work at thehospital.
Hey Michael… first off i wanna thank you for taking your time to respond to those that are having some troble with their credit. I myself am also having some problems…. most of it is not having the understanding about credit. I have one Judgement on my credit and my husband has two. One of his which I also have is a Tax lien. it was filed in 2013 and we just payed it 2 weeks ago. they promised to vacate it and i have already received the letter stating that. My credit score says 547 but i have no credit…. i also have a few collections (medical bills) and i believe one from sprint. i am paying off my medical bills this month but my question is will my credit improve much even if i dont have a credit line?? ok… so moving forward with my husbands account.. the tax lien is paid and its on its way getting vacated but the second one is a law suit. We settled that one and paid it 2 weeks ago but the lawyer stated that he cant remove it all he can do it send me a warrant of satisfaction. will that do anything to my husbands credit? that fact that we paid it….. we r trying to buy a home asap. but i need to wait on the updates on our credit report. is there any way we can vacate the law suit?
thanks for all your help.
You will want to resolve unpaid debts on your credit reports and also add new positive credit. Once you get everything resolved I would look into getting a small limit unsecured card from someone like Capital One, or start with a secured card.
You want the satisfaction to be filed with the court so that his credit reports can be updated to show a paid judgment. His credit can improve from there, and the home loan can go through. That satisfaction notice is something you can give to a loan officer for manual processing or rapid re-score.
You need a reason to vacate a lawsuit. It can take a good deal of time and attorney fees to do that, and you could lose in the effort even when you have a good reason (never served properly, disputed debt, etc).
Hi Mike,
I had a medical judgement against me. I paid in full within time span on the documents. Now, six months later it is showing up on my credit reports knocking my score as low as 7 points. I’ve been trying to clean up my credit I am now at a high 570 something. My only open line of credit is my car payment that is perfect. Will I be able to get this off of my public record? I planned on getting a secured credit card next week. I have small goals for now..car insurance in my own name…so high with bad credit…then a used harley that I can pay off but planned on trying for a loan to show payments on time and a house in 4 to 5 years.. any suggestions I would be grateful!
Thank you,
Christina
I moved your comment from the home page to this reader question about getting judgments off of your credit reports. Read the original article and above and into the comments too. This will help you better understand what is likely to happen from here with the judgment in the public records.
I would continue taking all the steps you outline about rebuilding your credit and be ready to meet the ability to repay rules for a mortgage when you are ready to buy. That can mean having a healthy debt to income ratio, a large enough down payment and/or shopping for the homes at the right price.
I have a public record showing on my account that doesn’t show that its paid not really sure what happened but when I first received I believe it was for a gym membership that my ex bf and I had I started making payments on and then that company got sold to LA Fitness so on my credit report it just shows under ” legal item” doesn’t show that its paid what does this mean and who can I contact to see if this is the same one Im thinking about also my one judgement that’s satisfied was for a medical bill I thought there was a new law that medical bills didn’t reflect on your credit score or something like that
Paid medical collection accounts have a muted impact on your credit score, or depending on the scoring model, a zero impact on your credit score. But yours is a judgment, which is not part of those recent score factoring changes. If the judgment is satisfied then you just keep building credit from here and let time help push your score back up.
I would contact the new club owners collections department and find out who the account was sent or sold to. That is… if the gym membership is not already a judgment. I could read your comment to say that. Is there an additional judgment besides the medical debt?
Yeah I remember getting the paperwork and doing automatic payments then when Bally got bought out by LA I never heard anything from them again so the judgment shows un satisfied not sure if it just went away because the company got sold or what
Existing judgments generally will not just go away. If you do not hear from anyone about collecting what is still owed on the judgment, it can appear that way.
I would contact the LA Fitness billing department and see what they can tell you.
It may help you to read over my article about settling and paying judgment debt.
My husband has a old judgement on his one credit report. It is over 10 years but received confirmation of a renewal recently through our local court. He was unaware of this until he received the paperwork from the court. When he ran his report, the two showed he had a score 650+. We did not run all three. When he applied for aVA loan it came up on the third report. The original judgement was approved for garnishment of his state taxes to pay the original debt. After several years of not getting his state taxes, he assumed the debt was paid or at least pretty close to settle. The original loan was for 4000. We sent an offer letter to settle and they stated he had to call to settle. When he did this they told him the pay off amount is over 9,000 but they would settle for 8,000! How can this be? He requested the paperwork to prove this figure, the refused and said we had to request this in writing, sent by registered mail. I am doing this now, but my question is can they do this and what can I do? Thanks for any help you can offer.
The balance on many judgment debts is growing from interest set by the court. The interest allowed to accumulated on judgment debts is often capped by state law. Many states cap at around 10%. That can make a debt more than double after this much time.
You could probably get a better settlement than that. Call me for a consult if you like at 800-939-8357, choose option 2.
I have a question about how to handle a judgement on my record. i had an account with chase that was charged off back in 2009 when i fell onto a difficult time being pregnant on bed rest & we ended up losing our home in the process as i was unable to work. they sold it to midland & in process turned into a judgement in 2011. It states on my credit report that the chase (Original creditor) reporting should fall off my report this year. i had contacted a local law office who asked me to find proof i was gone on day they served me papers as i do not recall being served but it was so long ago and not sure i can find something to prove that this far out. i heard that if i contact midland that they will then begin reporting it as of the time i contact and pay which could draw out the statute of limitation on reporting. what is the best route for me to take to resolve this issue? do you have any attorneys in orange county california that you can refer me to? my score is around 690 right now even with the judgement on it. i was able to get a few credit cards this last year and the reporting on them is excellent – always on time and always pay more than the minimum. we eventually would like to be able to purchase a house again someday so i would like to resolve this judgement in whatever way would be most beneficial to my credit report. naturally midland keeps hiking up the amount but i have not been contacted by them in some time and nothing has been levied as of yet. we have a large family and under a tight budget so not sure how i would come up with the $ to pay them but again want to know what my options are to handle this with the goal of eventually being able to purchase a home one day again. thank you for your time! i appreciate any tips you can give…
What you heard about Midland Funding setting a new credit reporting date after you contact them or pay them is wrong. If that did happen it would be a mistake and easily fixed.
I can help you consider the best next step given your goals. You can reach me at800-939-8357 and choose option 2.
My bank account was recently levied for a judgement. In the state of MN, 25% of your disposable income is all that can be taken for a work garnishment, is this the same for a bank garnishment? And who determines how much of my money is protected? The bank told me that they don’t determine how much 25% is, so who does is my question? They took $921 total, can they take all of the money in my account? I have no exemptions but who do I live of they take ALL money in my account every chance they get?
What is the judgment about? Who is the plaintiff that sued, and the collection attorneys levying your bank account?
Generally, Minnesota protects deposited wages from bank levy. You will want to connect with an experienced debt collection defense attorney and discuss your rights.
Michael
I have an Advanta account listed on my credit report. The account was closed and charged off in 2007.. It was then reported again in 2010 that I made a payment. My question is should it drop off my credit reports 7 years and 180 days from 2007 or from 2010? If it is 2007 should I dispute it? Thank you . I took yours advice about the judgment being satisfied and the credit bureaus have already marked as satisfied.
Hello Michael,
I too have a judgment on my credit report. The judgment has been paid in full, released, and satisfied. I called and talked to reps from TransUnion and Equifax and quoted the last paragraph on my released letter stating that “The above tax judgment having been settled, cancelled, and/or satisfied, the same is hereby discharged upon payment of the court costs by the defendant to the Clerk of Courts.” I also faxed this document in and they removed it from my report. Experian will not remove it and I do not know what else to do. What can be done in my situation?
Paid tax liens can stay on your report for 7 years. How long ago was this resolved? What type of tax was this?
Hi Michael,
I have a judgment on my credit report dated 12/2008. I have done a research since my sister and I have the same last and first name (different middle name). This record comes with my sister’s middle initial, unfortunately during the time Capital Bank filed this claim I was out of State married to a Military guy so I didn’t know I had to appear on court neither a case was open.
On the case says “estimated month and year this item will be removed 8/2015”. Do you think I should appeal the court to remove this from my file or just wait until it get removed?
This judgment was filed in Florida.
Thank you for your time and help
The judgment will still be there even though it does not appear on your credit reports. It will still prevent you from getting a home loan approved etc.
You will want to attack this at the source, which is through the court. If it were me, I would definitely petition the court that this be removed. I would suggest talking to an experienced debt collection defense attorney. If you need help locating one, post the name of a large city near the court in Florida the judgment is entered. I will send you an email with contacts to any I know in the area.
I have a judgement on credit report since 2004, it was from when I was young and working full time and going to school full time. Obviously judgement do not fall off. It is through the circuit court. I have the money to pay it off in full, but does that hurt or help my credit at this point. It’s 10 years later and I am slowly rebuilding my credit but this thing just lingers over me. Thanks
What is the judgment the result of (the underlying debt)?
Who is the judgment creditor?
Typical judgment debts for most of us stay on your credit for 7 years. The debt is still collectable and with legal options to garnish wages, levy bank accounts, and lien property, so you will still want to resolve the issue, but the credit reporting after 10 years is odd. Call me to talk about this some more before you go to pay it off if you want. I can be reached at 800-939-8357, choose option 2.
It was for a line of credit at at a bank, The bank is the creditor I would assume, credit report is showing its with the county court office. I will definitely give you a call.
That is not a scenario that should last more than 7 years on your credit reports. Something is up. If you get my voice mail be sure to leave a message. I am often tied up on the phone.
Thanks Michael,
I just double checked my credit report, and apparently they didn’t file until 12/2008, even though the loan went bad in 2004. so it won’t be removed until December of this year (15).. I am assuming based on your previous response to another person, I should still look into getting it taken care of even if it will removed this year? Do I contract the courts or the original creditor?
Yes, you still want to resolve judgment debts even when they are too old to show on your credit. They still can be collected on and with legal options such as wage garnishment, bank account levy, and property liens, all will vary depending on the state you live in.
You will likely be dealing with the collection attorney if they still have the file, and not the court or the creditor. Really old judgment debts may not be with the attorney anymore, or with a new one.
If you need help with strategy, let me know.
Hello Michael,
I am a 100% disabled veteran, only receiving VA disability. Asset Acceptance sued me for an old HSN bill (that was originally $653.00). Sadly, I was battling health issues and was unable to show up for my hearing. Not surprisingly, a default judgment (now ballooned to $1000.00) was entered against me in 2012. Since it’s too late to try and vacate the judgment, I corresponded with this shady collector via email and presented them with a copy of my total and permanent disability paperwork from the VA. They responded in writing that they were “ceasing all collections activities and would be filing the appropriate dismissal paperwork with the court.” They know I am judgment-proof, so in exchange for Asset to file paperwork to vacate the judgment, I am offering them $100. Basically, the money is a carrot for them to file the paperwork. They know they aren’t going to get a dime otherwise, and I can “wait” for this small judgment to eventually be removed. Asset is one of the WORST collections agencies out there and their practices unscrupulous.
What are the odds they will take the money and file the paperwork. (everything will be in writing, of course)
Any further advice would be helpful. (and yes, I can prove I was at the VA hospital on the hearing date, although one attorney told me it’s mute at this juncture).
Kind regards,
L
Can you clarify or confirm the following:
Asset stated plainly to you they would be dismissing the court action.
If they told you they will be dismissing the court action than they will likely do that. You would not need or want to offer them a carrot of $100.00 to remove the judgment from your credit reports. That shows a willingness and ability to pay. They are agreeing to cease all collection and drop the judgment because you meet the criteria for them to do that.
I should point out that while you say Asset Acceptance is the worst ever, they are one of few debt collectors that will openly state they cease all collection activity, and even legal actions, when someone meets their definition of being non collectable. I only know of one other debt collector that states this policy publicly and they are owned by the same parent company as Asset Acceptance.
Hi Mike-
I had a judgement filed against me from a furniture company in VA Beach after losing my job. I was working temp jobs and paid when I could. I moved back to MD with my parents and made sporadic payments. Although I made a payment in October 2014 my account was still past due and a judgement was filed in November 2014. I did not get any notice of the court date because they sent it to my old address. i found out about it in January 2015 when I received an alert from CreditKarma. I called the company and set up a payment arrangement. I asked for the arrangement in writing and my representative sent me an email outlining the payment arrangement. A month later in February after my first payment was drafted from my account I called to make sure they received it and that all was well. The company then said that after the payments would be made that it would not clear my balance and close my account. I referred to agreement in the email sent in January and they honored it. The judgement is still on my credit report even though i have paid it. I am trying to figure out how to get it removed because I would like to buy a home. I have done some research and found a form on the court website called MOTION TO SET ASIDE DEFAULT JUDGMENT. On the form there are reasons listed for why the judgement should be set aside. I am wondering if the reason “an accord and satisfaction (attach proof).” would be work if I attach the email and showed proof of payments, OR is the accord and satisfaction only for actions taken BEFORE the judgement was filed. If I am grasping at straws here is there anything that you can suggest that I do to try to get this off of my credit report. 7 years is a long time to have to live with my family until my credit is worthy of a home mortgage loan.
Thank you in advance!
Is the judgment at least updated to show that it is paid or satisfied on your credit reports? If not, you can dispute that with the lender and also with the credit reporting agencies.
You will not likely be able to set aside this judgment for any of those reasons. But it will not matter. A paid judgment will not hold you back from getting a home financed using FHA underwriting standards. If the judgment were unresolved you would be declined today, but yours is resolved. Make sure it shows that with the court and then with the credit bureaus.
What are your current credit scores?
Thanks for the response Mike!
My score on CreditKarma is 527 Transunion and 526 Equifax. On Credit.com its 626 and my Vantage is 537. The judgement is not showing as satisfied on my Equifax. .Why is there such a big difference in my scores and which one is most reliable. I have old medical bills that I am paying off. I put myself on a 6 month pay off plan which I have been following and I am currently on month 4.
Thank you!
The wide variation in credit scores will often be sue to different information being included in each, and also the scoring algo used. The new Vantage score does not factor in paid collections for example. Paid medical collections will not factor in as heavily with FICO is another.
I would start with making sure the judgment is updated to show paid satisfied with all of the bureaus, and then start looking for any other inaccuracies or out of date incomplete info, and attack those next, and try to have all that cleaned up by the time your medical bills are paid off. Once you have all of that done you will begin to see a clearer picture of where you are at credit wise.
Thank you for the quick response and for providing me with a plan of action. What would be considered out of date information?
Accounts that have a derogatory nature that are more than 7 and one half years old; an address you never lived at; employer information; mortgage loan servicing is not updating correctly have changing hands… all are some examples of things to look for.
I have a judgement that I have been making payments on but I can’t afford to keep up on the payments. I’ve expressed this to the collection agency but they say I don’t have a choice because they are not willing to change the payment amount. I told them I would work through a credit counseling agency they told me it doesn’t matter because they won’t take less than $375 a month from them either. They already have access to my bank account and are not threatening to levy my wages. I can’t keep up the payments at $375 a month, what can I do? I offered a lower amount to pay but they will not accept a penny less than $375 a month. A collector once told me that as long as I send them something per month there is nothing they can do, is this true? And what options do I have as far as getting a lower payment amount per month?
They do not have to accept the amount you say is all that you can afford.
Whoever told you that as long as you send something, they cannot do anything, did not know what they were saying. That is simply not true.
Let’s dig in and see what you have. Answer the following questions and lets go from there:
Who is the collection law firm that you are dealing with?
Who is their client, or the named plaintiff?
What state are you in?
What was the balance of the judgment, what is the total amount still owing?
What all has occurred recently that is going to prevent you from making the payments you already have set up?
The collection agency is Messerli and Kramer in regards to a judgement from Capital one bank in the state of MN. the original amount was about $4100 or so and we are now down to $2800. I could NEVER afford the payments my bank account keeps going negative and I get charged with over draft fee’s. I have pointed this out to Messerli and Kramer but they refuse to budge on the amount of $375 per month.
I would stop the payments if it were me in that situation. I would probably re-approach them shortly after the date for my prior payments had passed and negotiate a new lower payment (so that I could remove any fear of lien, bank levy, or wage garnishment). Either that, or somehow pull together roughly half the amount still owed and see about negotiating a lower lump sum pay off.
I could possibly come up with a lump sum and negotiate the remaining balance. It would put me in a tight financial bind for a couple of months, but it’s better than having to deal with them. How much do you think I could get it dropped down? The judgement expires in 2017, which is why I think they are pushing so hard and the original credit limit on the card was $2500
Connie – are they threatening to garnish your wages or not? If so how much is your weekly pay?
My targets for settling judgment debts are often 50% of the balance owed at the time of negotiations. There are reasons this target will go up or down. Having just come off of regular payments, and unless payments were ceased due to hardship, it could be good to be prepared to pay 60% of what remains owing.
Michael
I have paid off a judgment and I have recorded it with the clerk of the district court. Do I need to send
copies to the three credit reporting agencies?
You could send a dispute to the credit bureaus with the documents (use certified court copies) to support that the judgment is satisfied. If you do, send the letter and supporting documents via certified mail return receipt.
If you are not in a hurry to get your credit reports updated (close on a home or other financing), the credit reports should update in the normal course, which can take a month or two.
If it were me, I would send the disputes showing the judgment is paid, even if I was not waiting some credit transaction.
Thank you so much for the advice I will try it that way. My husband has a credit card currently at 1700 with a 3000.00 limit. Is it better to pay that down some so the utilization is lower before tackling mine. Since we want to try for the house in December? He is currently at 615 for his mid score. Im thinking if we save the 800.00 to use it for his cc bc thats what is gonna get us closer to having the house than tackle mine. Would it make sense to get to the judgement after medical bills? The medical bills are split up from different places and dates. But are all more current than the judgement.
You could pay down his credit card, but run that by a mortgage loan officer (might be a good idea to start working with one now).
You could leave the judgment lay until the medical bills are settled. How many separate bills are there?
I have a judgment listed on my credit report to a state agency for $443, with a court address listed. However, when I attempted to contact that state agency, they sent me to a collection agency that the debt had been sold to, who now demands $3200 to satisfy the debt. Is it possible for me to pay the $443 judgment amount to the court to satisfy the judgment? Or do I have to pay the collection agency the much larger amount? The folks at the state agency office claim that I can no longer pay them in order to satisfy the judgment..
How old is the judgment? What state are you in? What interest did the judge set on your judgment? Who is the debt collector you are now dealing with? What was the original $443.00 about?
It’s from late 2009 in California, but I’ve lived in Washington since that time. It was from an income tax return overpayment that I foolishly ignored at the time.
I don’t know what the interest rate was set at by the judge – the last notice I received simply said that an “automatic judgment and tax lien” would be filed by a certain date, and since then the only record of it that I have is on my credit report.
I’m actually not sure of the debt collector’s name either – when I call the payment hotline given by the state, it redirects me to an automated recording that just says “Debt Collection Services” and gives the amount owed along with payment options. I’m not even sure how I would contact them other than sending a letter to the address given in the phone recording. There are no options to talk to anyone, etc.
The amount is likely being inflated based on an interest and/or penalty that is set for judgment debts, or that may be applied based on state legislation for debts owed to the FTB.
You could send a written request for a break down of the amounts owed, but you could also look up the judgment in the court record (probably free access on the court website) and see if you can tell from the judgment entry documents how the math works out to such an inflated amount today. It is not uncommon to have tax debts inflate so much.
If it were me, I would do both.
You cannot pay the court the original 443.00 to satisfy the judgment. That is the base judgment amount and would not satisfy what is owed today.
Does the recording you heard, or anyone you spoke with, directly tell you that your debt has been sold off, or refer to a debt collection agency name?
Thanks, I’ll try those two options.
The recording doesn’t explicitly say that it has been sold, but the person I talked to told me that I couldn’t pay her office because it was “sent to collections”. I suppose that could just mean a separate department or something and not a separate company. She just referred me to that automated phone system.
Hi my husband and I would like to purchase a home by Dec. or early January. My credit is pretty much shot. His is up and coming I suppose. We would like to use his credit but since we are in TX I know he needs to qualify holding my debts. So I want to clear up as much as possible.
510 Experian 488 Transunion (539 as of today) 542 Equifax (536 as of today) He did just add me to his capital one credit card as an authorized user. I believe this has helped my credit go up some from the time this was pulled.
I know the credit card utilization brings me down. Which the limit is 500 and it’s at 230 currently so I can bring that below 30%, how much will that help? Payment history is very poor as I haven’t had any accounts to pay I guess. I have medical debt and student debt currently against me. I am in a repayment program for the loans in July I will be eligible for deferment I believe. Will this affect my score any? I have 19 hard inquiries on my report and 1 judgement (a chase cc I think from 2006) the file date is 07/2010 which I know is hitting me pretty hard. What’s my next step? What will bring my score up the fastest and how do I get this judgement off. I don’t really have the money to pay it (1600 is the amount I believe) but I need it gone. I am concerned that it will just renew if left unpaid.
If you are going to be part of the approval process for a home loan you will need to resolve any unpaid debts before then. That means settling the judgment and getting it updated with the court to show satisfied.
How much is the medical debt in collection on your credit reports?
Do not apply for any more credit (create any hard inquiries).
How much are your student loans, and is it that your loans are coming out of default, and you will then be able to defer? What will the deferment be based on?
We plan to use only his credit for the home. Will the judgement fall off in 2017 as in no longer affecting my credit?
The medical debt is 1,496.00 and student loans that are past due are 30,905.00 they will be out of default after the 10th payment and yes then I can defer. Deferrment for economic hardship.
Getting your student loans out of default will help that part of your credit reports start to heal.
The judgment may not appear on your credit report after 7 years from the date of entry in the court, but it does not go away. It can be located through the public record, and can still be viewed by potential creditors. This fact can mean that unpaid judgments will hold you back from credit goals, while not necessarily holding down your credit score.
Judgments can be settled for less than the balance owed. Can you come up with half?
Medical bills can be settle for less in some circumstances too. How old are the they? Did insurance cover any portion?
What kind of credit goals? Even if my score is higher I would still be unable to obatin credit? No I couldn’t come up with half anytime soon. The medical debts range from 2010 up to 2014. I was under my mothers insurance up until the end of 2012 so I am not sure about coverage at that time. I also had medicaid coverage through that time as well. I wouldn’t even know how to go about determining what’s what. Would i call each creditor and set up arrangements?
You would contact the current debt collectors on the accounts to resolve them. I think you have a shot at negotiating the judgment debt for half-ish based on your current financial situation.
If it were me, I would save up to settle the judgment with a lump sum offer first. After that is out of the way I would approach the medical bills the same way.
Its 8 to 10 different medical bills.
You can work to settle or pay those one at a time as money comes in too. Keep me posted on your progress.
A debt (which I do NOT own) went to collection in early 2010. On 04/24/15 I had a judgement filed against me. My court file has a “Certificate of Service” but the stated serve date 04/05/15 is incorrect. FYI, I have not responded to the notice.
Goal: Get this completely removed from my credit report AND public record. I am willing to pay IF it will achieve my goal.
Why: I am planning on leasing a car in 2 months. And I am pursuing a career in the financial industry (taking Series 7 and 66 soon).
Question: What are my options? What is the best and worse case scenario?
Can you be more specific with some details about how this is not your account?
How off is the date off service filed with the court (an inaccurate date is wrong regardless, but I do want to understand how much of swing there is between the dates)?
You will often find you need to petition the court formally in order to vacate or set aside the judgment. If your scenario is just way out there, and should have never happened had the debt collector understood the facts, it is possible to get a collection attorney to do the right thing and dismiss the suit, but post answers to those questions and lets go from there.
Hi Micheal.
The collection account is for a medical bill and at the time of service, I had full medical coverage, When I checked into the hospital, I gave them all my insurance info. Several weeks later, I received a bill in the mail from the hospital showing I owed the full amount. I called the hospital right away. I gave them my insurance info (again) and the person I spoke with said they would apply my insurance and that my balance would be adjusted. So…. the hospital did NOT apply my medical coverage.
I searched ALL my records to find my insurance info, but I couldn’t find it. During a move to a new home, some boxes got lost.
As for the date, it was off by a few days.
Questions:
1. Since a judgement as already been made, does that mean the collection agency is going to garnish wages from my paycheck?
2. Since I cannot find my insurance documents, I’d like to resolve the matter and remove it from my credit report and public record. If I call the collection agency, would they even be able to remove it completely? I am willing to negotiate a payment to resolve this ASAP.
3. Is there a another number to call? I tried calling the 800-939-8357, but I was not able to speak with anyone. Or is there a preferred time to call?
THANK YOU SO MUCH!!!!!!
Not being able to find your insurance information is not a good reason to roll over on this. How much is the bill total?
The hospital or medical service provider should have your insurance on file, you could coax it from them perhaps. Was it an employer that provided coverage, they will be able to get you the info you need. If private coverage, your bank records will reveal the name of who you paid, and a quick search will provide the contact information you need, then you call and they look everything up by your social security number.
A debt collector will not be able to undo the judgment. That is something that the court has to be involved in, so it is a formal process.
I would really want to get to the bottom of this. Why not respond with all of this through the court process?
You can call the debt relief hotline and reach different services for different needs. Option 2 will connect you with debt settlement experts, sometimes even me. If no one picks up you have to leave a message if you want a call back. Everyone that is connected to the hotline will have set hours. 9 to 5 weekdays are a safe bet for calling times.
Whether, and for how much, you could be garnished is based on state law. Where do you live?
I am working on cleaning up my credit in order to buy a house. I currently have two positive lines of credit, car payments and a furniture company that reports to my credit, I have one card paid off and closed, and I have 4 student loans I am making payments on. Out side of that I have 6 medical bills ($11000) and one judgment from an apartment complex ($646) My credit score is currently now 501, I am looking to have my credit score up as soon as possible to be able to purchase a house next year. Where should I start? How should I handle the judgment that is from 2011? I have been doing my research and am really torn on where to even begin. I’m in Dallas Texas. Thanks for your help.
When were the medical debts created (date of services)?
Did you have insurance, and did that cover any portion of the bills?
How much money do you have in reserve currently in order to resolve the debts?
I have an old judgement that was with citifinacial in 2008. The account was then sold and I ended up paying the collection agency portfolio recovery associates. My issue now is no one filed a satisfaction letter with the court so it is still showing as a debt on my report. I contacted portfolio and they said since they didn’t file it they were not responsible for the satisfaction letter. It is also impossible to get ahold of the legal department at citifinacial unless you’re a lawyer. They citi and port are reporting 0 balances but not the court. So my question is who is responsible for filing it with the court and will I need a lawyer? Thanks in advance
I am not entirely sure it would not need to be Portfolio Recovery Associates that would need to update the courts. When was it you spoke to PRA and they told you they are not responsible?
You could also file a motion with the court yourself in order to get this all finalized. I would encourage you to work with your own attorney if that is the direction you take.
Hi I have judgment for 4000.00. It was incurred under my maiden name. So was the debt. My mother-in-law and my husband pulled some money together to buy a car so my 16 yr old could learn to drive. The car was put in my name. The title hasn’t come yet. Can someone come in the middle of the night and snatch this car from my driveway? The price paid was 5400.00. It should have been in my husbands name but because I researched it test drove it etc the day we went to pay for the car the bookkeeper had a a 3 inch thick file with papers I signed in triplicate with only my name on it even though it was requested it be put in my husbands name time was a factor (had to go to work). The title hasn’t even come in the mail yet and I am loosing sleep over this.
What state are you in?
How old is the judgment, and when was the last affirmative collection effort made by the judgment creditor?
You will have time to transfer the title to your husband through the DMV.
Hello,
i have a judgment against me from 2005. i am currently making payment/settlement arrangements with the creditor to avoid garnishment. i have not yet made any payments, and know to get an agreement in writing BEFORE paying them anything. i live in texas so they cannot garnish my wages, but i have only just begun to try to rebuild my credit, and i am trying to avoid having my bank account frozen.
my question is this – since it has been over 7 years since the judgment was filed, am i correct in assuming it no longer appears on my credit report? and when i start making payments to satisfy the judgment, will that affect my credit score? once the judgment satisfaction is filed with the court (many years from now, most likely), will THAT impact my credit score in any way?
i know that even if none of the above scenarios will impact my score, this judgment will follow me around for the rest of my life if it is never satisfied, so i am trying to deal with it now as best i can. the amount of the judgment is $10,834.65. The creditor (a large, well-known bank) is asking me to propose a payment plan that includes a down payment and monthly payments. they also told me i can propose a lump sum settlement at any time.
do you have any idea what they might expect for a monthly payment, as far as a percentage of my income? they have asked for my last 2 tax returns to support my proposal amounts. i plan to enter into a monthly payment agreement, then make a settlement proposal next year when i get my tax return. to further complicate matters, i have been filing taxes jointly with my child’s father but i left him recently, and we have not yet begun the process of divorce, and i have no idea when i will actually file. he is unpredictable, and i dont want to pursue without legal representation. i have spoken with a lawyer, but have not been able to get together the retainer fee. How will our filing jointly status affect how they will determine if my proposal is acceptable? or does it matter at all?
mostly, though, i am concerned about how all this will affect my credit score, if at all.
The judgment should not be on your credit reports 10 years later, but check to make sure.
Your payments, lump sum settlement, or update to the court record to show a satisfied judgment will not re-list the judgment on your credit reports, or impair your credit.
I need to know the name of the judgment creditor and the collection attorney handling it in order to offer anything like the feedback you are requesting. You are welcome to schedule a phone consult if you are unwilling to post who those companies are. Send me an email (same address you get these comment notifications from) and we can schedule something.
Hi Michael,
A judgment was entered against me in Illinois back in 2011.
Once I paid the awarded judgment off, I received a “RELEASE OF JUDGEMENT” from the prevailing party’s Attorney.
Is a Release of Judgment any different from a Satisfaction of Judgment or a Vacated Judgment?
If so, how can I have it removed from Credit Report?
Thanks in advance
It is the same for the most part. You cannot use it to get a judgment removed from your credit reports, but could use it to get your credit reports updated to show the judgment is satisfied if need be.
What are your current financing goals that have you concerned about the judgment being on your reports?
Thanks for the prompt reply Michael.
My current goals are to purchase a new home within the next 2 years.
However, because of the judgment on my file I may have to wait until 2018 to have a high enough score to get a good interest rate. Meanwhile I will continue to save $ and have an even bigger down payment on a new home in the future.
Also, how much of a hit is a judgment worth on credit score points wise even if it is shown as paid in full?
What are your credit scores today?
How many open and current accounts are showing on your credit reports (car loan, credit card, student loan)?
Unfortunately I have 2 judgements against me one from Capital One Bank for $4,000 and another from Midland Funding for $1,356, they are both being handled by a collection agency here in Minnesota. I am currently making payments on both of them. The larger judgement from Capital one comes off my credit report in 2017 but the one from Midland Funding doesn’t come off until 2019. My question is how long do I have after the judgement to go back to court to try and have them vacated? Or if I just pay both of them off but they remain on my credit report, how much will it impact my score? I want to buy a house in the next couple of years but of course with judgements it’s impossible to do so. In 2009 When my Capital one card got charged off I was pregnant and on maternity leave with limited income. I should have done something at the time but I was dealing with a becoming a new and single parent. Now I’m trying to get everything straightened out and just need an idea of what I can do to get this removed. Not to mention I’m paying $450 a month to get this resolved, I can’t afford it but I feel like I’m being bullied because when ever I can’t make a payment they try to withdraw from my bank account. Please help!!!
It is very rare to make any effort to try to vacate judgments that you are making payments on. What would be the premise for you to attempt to get the judgments vacated?
If you pay the judgments off, your credit reports will be updated to show they are satisfied. You can still get home loans, car loans and other financing approved when you have resolved judgments on your credit reports.
How much is going toward each judgment?
$375 per month for the Credit one and $75 for HSBC. Credit one will be paid off in about 8 months.
Sorry meant to say Capital One and Midland funding. I get mixed up because I have 2 cards with credit one bank that are in good standing
I’ve read some of the other comments and replies and it has become evident that vacating the judgement will most likely not happen. I have other items on my credit report, some I negotiated the amount and settled and some not paid. Most of them are close to the 7 years and coming off in 2015. Can collections show up on your report again after 7 years if resold?
The limit to 7 and one half years of derogatory credit reporting does not reset in anyway when collection accounts change hands. But you do need to monitor your credit to be sure all items are deleted at the right time. Debt collectors have a bad habit of adding more recent dates when credit reporting. You have to catch that and dispute collections off your credit where necessary.
Hi Michael,
I hired a lawyer to negotiate my judgement (thanks for the recommendation!), and he negotiated it down to ~40%. I have a signed agreement with creditor:
“This letter will confirm that We will consider the above account SETTLED IN FULL for the sum of $xxxx, contingent upon clearance of payment”
It’s all good, but then my lawyer asked me for $400 more if I wanted to have this judgement dismissed vs. paid. It’s been more than 2 months since then, the judgement status is still unchanged in both court record and credit report and lawyer stopped responding to my messages. Any advice?
It’s FIA Card Services. The Law firm is Harris & Zide
What you are saying is a little odd to me Serge. Can we connect on the phone so I can get into the details better? You can email a good time and number to call (my email address is the one you get these comment notifications from).
Hi Michael – I had a judgment placed last fall from an old credit card balance. The total was $1300, I agreed to pay it via the debt collectors lawyer in full. They’ve since sent me a letter for my records stating that I paid it off completely.
Today when I check my credit karma report, it shows the judgment and under status it just shows ‘Filed’ not paid or satisfied. Any suggestions? My credit score is right around 690 and I am trying to get into the 720’s as I am trying to purchase a house this year.
Any info is appreciated. (I am in New Jersey btw)
Thanks!
Who was the creditor or debt buyer that sued, and also who was the collection law firm? Also, have you checked any other credit reports other than the free ones like Credit Karma offers?
I would look up the court record itself to verify whether the court is shows your judgment as paid/satisfied.
Let me know what you find out and lets go from there.
It was from Arrow Financial SRVC, LLC. & The law firm was ‘Fein, Such, Kahn & Shepard, P.C.”
No I haven’t checked anywhere else besides credit karma.
Thanks again
I have a judgment on my credit report, I called the courthouse, they told me that the it has a default judgment entered, that I would need to contact the Law Firm. Once I get in contact with them I want to be able to pay them in full. Will it be the law firm that will report full payment to creditor and courts so that I can have this judgment removed off my report. I am trying to buy a house and this is the only thing keeping me.
Once the court is updated by the law firm that the judgment is paid and satisfied, it can take some time for the data aggregators to pull your courts records and upload that to the credit bureaus.
There are ways to expedite that, so be sure to get anything you agree to in writing if you need that to push things along. Also be sure you get any proof of payment you make.
Is there any time limitation you are up against (for closing)? How much is the judgment for?
The bank has told me to get back in touch with them once this matter has been removed off report. The judgment is for $2964.00 plus court cost$30 and attorney fees 741.23 and post-judgment w/5% int. from date of judgment until paid. judgment was set back on June 2009 until now. Am I looking at a big interest cost?
State law will often cap judgment interest. What state are you in?
Lets assume your interest rate is capped at 12%. That is going to add a significant amount to the debt.
I would suggest trying to settle the debt for as much of a savings as possible.
Hello Michael,
I have two judgements on my credit reports. One is with Crescent Banks for a auto loan that was voluntary repo. The other is from an accident I had and was sued by Alfa Insurance. I have been disputed these for the past few years off and on and i have gotten Alfa completely off of my Equifax but it remains on my other two. The Crescent one just recently showed satisfied on my equifax even though i havent paid it, but still shows as a civil judgement on the other two reports. My wife and I are looking to purchase a home in March of 2016 so I need your help and advice. My experian is 626, my transunion is 619 and my equifax is 555. If I so happen to get these off of my credit report, will the bank im trying to get a loan from still be able to find out about the judgements? Do you think its even a chance to get these judgements off? Thanks in advance my friend
Yes, the bank can still find out about the judgments even if they are not on your credit reports. Those judgments are part of the public record.
No, I think it highly unlikely you will get all three bureaus to delete the judgments.
How much are they?
One is $15000 the other is $10000. And on one credit report one of the judgement says paid. But do all the banks look for judgements in public records if nothing is showing on the credit report when trying to get a home loan? And if so, then, is the only way to get a home is to pay them off? Thanks Michael
You would have to be lucky to get a home financed with a judgment unresolved out there. Public records are part of the loan underwriting process. The fact that you have two makes it worse.
I would not feel good house shopping next year only to have the place I would like to buy be out of reach come closing time because of the judgments. And as soon as your credit is run for a mortgage, debt collectors can see it, which can make negotiating after the fact harder and certainly more expensive.
You would be in a better position if you negotiated the debts now, when there is time to be strategic about it.
I would suggest you call in for a consult so I can dig as deep as I need to in order to help you come up with a strategy. You can set one up with me by submitting the consult form.
Hello Michael,
In 2010 my home was foreclosed on due to financial hardship. in 2013 I received $3,000 from the Independent Foreclosure Review settlement against several banks. I became aware that there was a judgement on my credit report after I completed 12 hrs of classes to obtain a certificate for completion of the Homebuyers classes for assistance in down payment and closing cost. The judgement is for a total of $8,000.00 for a central air system placed in the home foreclosed on. I am ready to purchase and do have a stable job and figure if im paying rent to another homeowner I can do it for myself. But to my surprise I was denied the loan because of the judgement. Can you give me some insight into what I can do.
Were you never served the lawsuit? Have you looked at the court record to see the address the process server lists for where someone was served? Is that an address you are familiar with? Was there alternative service filed with the court?
Short of finding a way to challenge the judgment, you may be looking at settling the judgement in order to progress with your home loan goal.
I disputed a judgment and it was deleted on February 12 2015 . Is there a possibility that can comeback and not anymore .
The public record is what is underlying the reporting of the judgment. If the bureau deleted it, there is a chance it comes back on your reports when the data local data miners scans the court records and pushes that information to the bureau all over again.
If you succeeded with the dispute the first time, you could possible succeed again. What was the basis of your dispute? What did you say in your letter or communication?
Were you able to push through the home loan you spoke about it prior comments?
I call the credit card company and they didnt have any records , I called the collection agency and told them I was never served any papers that it was not my account , it was my wife . I kept calling them asking them to remove the judgment then one day I called them and they searched and told me they don’t have any records . I called equifax and told them that , it was removed in 4 days , then TU removed it in 2 weeks . Then I applied for a loan to purchase home and I was approved and we have a house now . I have a feeling this judgment won’t comeback ever but if it does I am going to keep fighting it . It was a six year old judgment , I don’t know I just hope it never does .
Hi Michael,
I have a default judgment placed (collection). It is regarding a credit card. Amount $1,200.
They served but I was surprise for me because they said the defendants were me and john doe with my last name (which now I know is somebody that they don’t know the name – I didn’t know that before). They also said that it was a marital joint account. I didn’t have a joint account by that time.
I received a letter from the collector saying that they want to settle.
I don’t know if I should vacate (arguing that I was surprise because I didn’t know about john doe, there wasn’t filed number, I though was a scam, and my mother lost the papers and I wasn’t able to search about it)
I don’t want that they garnishment my wages when it hits the 30 days. I need to act fast, but I don’t know what is better: vacate or settle?
Another fact is that the same collector has 2 more collection for credit card (charge off). They served papers to go to court but I answered them denying it (around $17,000). They have not done anything else after that.
My goal is to increase my score (at this moment 620 in TU) and buy a house in around a year.
Thanks,
When was the date of judgment entry? What state is this in?
Also, how old are the accounts in collection (when did you last pay on them)? Who is the collector involved on these?
I have a judgement lien placed on my home from debt collectors that bought the original credit card debt and from a cancer clinics where I was being treated for cancer surgery that I had in 2005. I got a lawyer that contacted me at the same time that I got the letter that I was being sued, however his advise was since the surgery had rendered me disability and they could not garnishment there was no alarm. The cancer clinic I did not know had sued me until years later checking the county records on my property and noticed the liens,the clinic debt is 2400.00 and collection for credit card is 8000.00 even thought i disputed the amount without master card sent letter to BBc, all three credit bureau, No good!!
That attorney you spoke with did not do you any favors telling you to ignore this. Not when you have property that can have a lien placed against it.
What are your goals?
Michael,
I owned a bunch of real estate that dramatically became under water in 2009 and could not renew the loans. I was able to work out a deal with the buildings with only some late payments showing up on my report. My issue is that I stopped paying the utility bill at one of the multi family buildings at the time. One of the banks I was doing the workout with said they wanted the rents if they were going to work a deal so I complied. The Energy bill was for around $30k. I missed the court time by 10 minutes and they were awarded judgement against me for around $33k. One issue with the judgement was I was initially charged to $6k as a deposit that I was not given credit for. The rep who turned off the utilities threatened me and lied to the city to get them to break the door down in order to shut off the utilities. Oct 2016 the credit report shows this falls off. Would you wait to see if this just falls off ? My concern is they renew? Another concern is interest although no one has contacted me in years? Is there someone you can recommend or any other advice?
They will renew.
Fill in this debt help consultation form. If you are available today, put in the comment section what time. I will be who calls you back. If there is no good option to connect today, it will be someone else that you speak with next week about resolving this.
Thank you. Filling out now.
Hello,
I current live in NY and I have a judgment from FL, which should be removed from my credit repots in October 2015. With that in mind, I’m scared that Florida can renew the judgment. Is this possible? Also what state statue of limits do I follow, Florida where it was filed or NY, where I currently reside?
Thanks
There is a difference between a judgment being renewed on your credit reports, and the court renewal for the judgment to remain collectable.
Florida judgments are 7 year renewable (for collection purposes, not credit reporting).
New York judgments are good for 20 years (both domestic and foreign), both with a 10 year lien renewal. That is also for collection, not credit reporting purposes. And they would have to domesticate the Florida judgment in New York.
If it is your credit reports that are the main concern, you may still have to worry about an unpaid judgment lingering out there before you can realize different types of credit and financing goals, regardless of whether the judgment still appears in the public record section of your credit profile.
Hey Michael, Charles again. I know you’re probably sick of my questions by now.
To refresh you on my situation, I’m the guy living in Florida for 7 years who recently got a hold put on some of the funds in my savings account by an attorney for a default judgement filed against me. The judgement was filed in New York 10 years ago. The judgement, new collector, and the attorney collecting on behalf of them are all in New York. They also have not yet officially collected. The funds are still on hold.
I see you have someone with a similar situation, except they’re in New York, and their judgement was in Florida. You replied to them and said that the Florida judgement would have to be domesticated in New York. Does it not work the other way around? Because I now have every piece of paperwork on it, and they didn’t domesticate my judgement before putting the hold on my account. Should I confront the attorney about that?
The other thing I was thinking about was that my account is in a national bank (Wells Fargo). Is that why they were able to do it, because my bank has branches in New York?
Thanks once again,
– Charles
It would work the same way from NY to FL for wage garnishment, property liens, etc., they would generally need to domesticate the foreign (to the state) judgment.
Did you open the Wells Fargo account in a New York branch office, or in Florida?
I think your situation is worth talking to an experienced FDCPA attorney about whether there are collection violations that can be pursued.
It was opened in Orlando, FL. About 2 months after I moved here. I literally never had a bank account before that. I tried talking to a consumer lawyer here, but he said I had to talk to a NY lawyer because the judgement was in NY. I called at least 5 lawyers in NY and non of them really wanted to help me, mostly because the judgement was so old, and because I was out of state. One of them told me that he could try to take care of it, but I would have to pay him “around $1,500”, and there was no guarantee that there would be a positive result.
And you have searched for your name in the court records in your area and found nothing about this?
Yes. The lawyer that I spoke to here actually did me that favor. Nothing turned up.
The new collector is Palisades Acquisition btw. Since this all started I’ve been reading many many articles and comments. Their name and especially their ‘unorthodox’ tactics come up quite often.
I’ll look into the judgement domestication further and let you know what I find..
I checked again (myself this time). I searched my local court and all surrounding counties. The only thing that turned up were a couple of automobile violations that I took care of long ago. Nothing judgement related. I bit the bullet and called their attorney’s office. I got (what I assumed was) a phone jockey. I threw the Domestication of Judgement thing at him, and he came back with kind of the same thing I was asking you about before. He said if they wanted to garnish my paycheck through my employer or something, then they would have to. Since there was enough in my bank account to cover the judgement, and because my bank has branches in NY, they didn’t have to. This is what the guy told me. That doesn’t at all mean that it’s true. I have to mention that at that point he also offered me a chance to satisfy the judgement for less money. I didn’t really understand this considering that they already have the full amount on hold from my bank account, and are really close to getting it all. I didn’t admit or agree to anything. I told him I had to talk to somebody before I was going to make any kind of deal. He started to get pushy. He started telling me that the best thing for me to do would be to settle it right then. I broke it down to him. I said, “Look, you already have my money on hold, you have all of my contact information, and you have ME calling YOU to discuss this matter… I’m not going anywhere. Give me a day or so to get answers to some questions I have, then MAYBE we could work something out.”
He told me I could do what I wanted, and that he would have one of the attorneys give me a call tomorrow. The conversation ended there.
I checked with an attorney resource of my own. They did not see a collection violation worth pursuing.
Hey Michael,
I found more on the subject:
“If you bank in the state in which judgment was awarded, the judgment creditor (the creditor who sued you and won a judgment against you) will petition the court to garnish your bank account and then ask the court to send a writ of garnishment to whatever bank they think you bank at. Think is the operative word here. They have to guess where you bank. They usually just have a writ of garnishment served on the top 5 local banks in your area—and they usually get lucky. Next your funds will be frozen and they will use this as leverage to get you to enter into some type of payment plan (most people don’t have enough cash in their accounts to satisfy a judgment). The lesson here is to bank online with an out-of-state bank.”
Hopefully this will be useful information for someone in a similar situation to my own.
– Charles
So just to verify if I don’t hear anything by 10/15 I’m out of the clear?
If I understand all that has happened correctly, that is the date the credit reporting agency says this will drop from your credit. But you are not in the clear necessarily. The judgment can still be found in the court record, and often can show up and prevent mortgage and other credit approvals. And for as long as the judgment is legally enforceable, you are at risk of extra ordinary collections like lien, levy and garnishment (as each would apply in your state, and if a judgment is domesticated).
Thank you!
Hi,
I had a judgment against me for £990. As the forms were sent to an address my family and I had moved from years before, and did not know the occupants so had no idea I was being taken to court until last month when I saw it on my credit score (Experian). I have paid that off now, I would like this taken off my credit score – I believe it’s unfair as I never got the court papers.
Can I get this taken off easily?
Thanks for the help.
Are you in the United States Beth?
No the UK, I know things are slightly different but finding it difficult to get any straight answers.
Check out this resource for debt and credit help and answers in the UK: https://getoutofdebt.org/free-uk-debt-help-and-advice
I found out in November by checking my credit report that liberty had filed a judgment on me and I had no idea what the judgment was about well after several attempts to contact liberty I got a hold somebody found out what it was about. Liberty has sold to another company and no longer owns this debt I have not heard anything from the courts, had not heard anything from liberty and have not heard anything from the new company they sold to but liberty still has a judgment with the courts on this debt my question is can liberty still keep that judgment in place even though they do not own the debt. I did contact the other collections company and requested some paperwork be sent explaining the debt and the amount owed that was in January and I’ve not received anything from them yet I am out of town working and unfortunately do not have the information of the other company with me. I would like to get this matter cleared up and get that judgment removed from my credit report I live in Utah. Could you give me some information on what I need to do thanks
The court keeps the judgment in place. Liberty has nothing to do with it at this point, and it will stay in place unless you resolve it through payment (settling for less works), or challenge it successfully for some legitimate reason (never served).
Sending the new owner of the debt a request for paperwork explaining the debt will not result in anything useful.
What is your goal with this account?
I should say… what is it you are looking to accomplish by getting the judgment removed from your credit reports (which is highly unlikely)?
I’ve been living in Florida for 8 years now. I’ve built my credit up to just under a 700 score. Not great, but I’ve made a lot of progress. About 2 years ago I started getting really proactive about it to the point that I check my credit report at least every other week, and there have been no judgements or collections on my credit report in that time.
Today (2015) I got paperwork in the mail from my bank stating that $4,652 from my savings account was put on hold by an attorney because of a judgement that was filed against me in New York in 2005. Plus from what I understand, 10 years worth of interest. I had my Mom go to the courthouse in New York to obtain a copy of my file and she was able to verify that the judgement from back then was legitimate. So they are collecting on it from me now, 10 years later, and several years after the judgement has already come off of my credit report.
If I owe it, I owe it. It’s going to hurt me financially, but it is what it is. I just don’t want it to harm my current good credit.
So my question is; when this is all said and done and the attorney finalizes getting the money from me, will this somehow pop back up negatively on my credit report? Or because the judgement has already come off of my credit report years ago, he just collects the money from me and that’s the end of it?
He collects and that is the end of it, based on what you shared.
I would look to try to negotiate a lower lump sum payoff on the judgment if possible.
Thank you so much for your reply Michael. I’ve been searching for the answer to this for almost a week now. I must have worded it a hundred different ways in Google and read a ton of posts before finally posting the question myself. I really appreciate your help and I think what you’re doing here is very noble. Credit and everything related to it is a mystery to most of us, and can be really scary at times. It’s great to have someone like you in our corner.
Thanks again.
– Charles
Hi Michael,
My husband and I are trying to purchase a home, we ran a report and found 2 judgements under my husband’s report from 2009 and 2010. How can we fix this issue? Any advice would be greatly appreciated!
Who are the judgments in favor of?
What are the amounts?
What state are you in?
Are you closing on the purchase soon, or just starting shop for loans and houses?
Hi Mike, I was wonderingif there isa way to remove a public record from your credit report? I had a civil judgement from TD bank to pay money I owed to the bank, and it resulted in my check being garnished for a few months until it was paid off. This happened in 2011, and I am still having issues opening up a bank account and the public record is still showing up on my credit report. Is there a way I can resolve this?
Does the judgment show as unresolved on your credit reports still, or is it appearing as paid/satisfied?
Hi , Mike . I have a Judgment against me filed on 11/04 /2009 In Washington state , I was sued by NCMI Corporation . I never knew about this , I asked NCMI about information on this and they told me it was about a credit card my wife had that she didn’t pay . I was not a consigner or authorized user or anything on this account . I never received a notice about this Judgment , I moved to Michigan about a year before ! I have asked them to remove this from my credit file but they have refused to do it . Recently , I call Equifax and open a dispute and this judgement was deleted from my credit file , I called Trans union about a week ago so I am waiting to see what happens . Reading the responses here this doesn’t treat the root of the problem but if I could get it removed while a purchase a home it would be great , later I would fight this with an attorney . What are my chances of winning and what are my chances of Trans union also deleting this ? Thanks
I do not think the chances are great for getting the judgment deleted by all of the credit bureaus, but it can happen, so cross your fingers and get the loan through before they come back on.
If you can show you were never served, and lived in a totally different state to boot, I like your chances of dealing with this. Would you like to consult with an attorney I know with the experience you need?
I was living in Michigan during this time , I have all the rent records and School records . I was living on Campus at a University . I would like to consult with an attorney and see what happens . So send me any information you have . Thanks .
I sent you contact information to an attorney that covers all of Washington. Call him and see what he thinks of all of this. Please post an update and let me know how you progress.
Michael , Judgement was deleted from Equifax in about a week after I contested it , it was never in Experian and Trasunion deleted it after 30 days from the date I challenge that debt . I challenge some late payments . Credit went from 587 Experian to 734 , Equifax from 601 to 685 and from 582 Transunion to 710 . Thanks for all the information here . I aply for a home loan today and everything looks good . I should have my home in about 30 days . Refinance a car loan , interest went from 12.86 to 5.93 .
That is fantastic Fred! Your update made my day! Good luck in your new place.
Hi I have a question about a judgment made against me by a credit lawyer and I am trying to pay it off in full and e mailed his office to pay him off? Do I pay the creditor or do I pay the court that I have the case number it is attached to? When I pay it off how do I go about getting it off of my credit my husband and I are trying to buy a home and this is the only thing holding us back, so I am trying to get it all settled. The original date was 8/20/2010 and there was garnishment of my wages does this make the amount go down at all? Do I request for the lawyer to have it removed off of my credit? Thank you for your time, also this is in Arizona
The lawyer nor the court is going to remove the judgment from your credit reports. The judgment on your credit is based on the public record. Unless you remove that, which is not likely, the judgment stays for 7 years. The fact that you paid/settled the judgment should result in the attorney filing a satisfaction with the court. That would update to your credit reports, and remove this as a home buying hurdle.
What are your credit scores right now?
Thank you for your reply, I am not sure on my current score but I have not made the payment on the judgment I am trying to pay it off and have my credit score go up, I am having trouble knowing how to go about paying it off, do I go to the court and pay it in full or do I contact the lawyer on the case? it has been Five years so will it be higher then what the court says it will be or less because they garnished my wages when I was working?
Each state sets their own limit on judgment interest. It is highly likely there is 5 years worth of interest accumulated on the judgment.
FHA type of home loan financing is often going to be based on a 620 credit score floor. That is why I asked.
I am a fan of trying to negotiate the lowest possible pay off on old debts. If you want to see how much of a reduced payoff you can negotiate on the judgment, call the lawyer. If you want to pay off the judgment in full, you can deal with the lawyer, or call the court clerk and ask about your options for paying the court directly.
Hello,
We won an appeal on a lawsuit that was won against us. Once the appeal board had given us the award, the attorney went back to the district court to try to get attorney fees. The lost that case also. Now we need to make sure this judgement is removed from our credit history. How do we do that?
Becky
What does the court record show about your case as of right now?
Great info. I have an interesting issue. I recently discovered I have a judgment against from Capital 1 from 2013. What happened is I have 2 other Cap1 cards between me and my wife and this one somehow got overlooked. My signed a summons (certified letter) while I was working out of town and never opened it. I assume it ended up in the trash and never was seen. The judgment against is me for $711. I have not contacted anyone other than to get the official court documents emailed to me, which all seem in order. I would like to pay Cap1 and have the judgment and charge off removed from my credit as this was not an intentional non-pay (though correct). I am looking to purchase a new home in a year and need the credit to do so. Any advice? Can I get Cap1 to do a pay for delete on the account and the judgment or somehow vacate the judgment even though its been over a year?
It will be difficult to get the judgment vacated if your wife signed for the summons.
Capital One is not going to do a pay for delete in normal circumstances, and this is an escalated collection, so any effort in this regard will likely prove a waste of time.
You can pay or settle the judgment and get the court record to reflect as paid or satisfied. If this Capital One account is the only negative on your credit reports (charge off and a judgment, so two negatives), but show as having been paid when you are out shopping for a mortgage, you may still be in good shape.
Are there any other collections besides CapOne showing on your credit reports? How about your wife’s credit?
around the same time I have a 120 day late on a mortgage from Nationstar which seems very inaccurate as I have never gone 4 months without paying. Im thinking of either challenging this one or asking nationstar for a goodwill adjustment. Other than that I have a few 30 day late issues over several years (4 in the past year spread over 3 accounts). It is of note that I also have a separate Cap1 credit card in good standing and so does my wife. As far as my wifes credit, she only makes $4,000 a year and has 1 credit card in her name in good standing. We share credit on a car payment that has a few 30 day lates. I currently make $70k and pay a mortgage of $1000/mo with no issues and only 1 car payment. Plan on keeping ccs under 25 percent for the next year and paid off monthly. Thanks for the fast response!!
You should be okay come home loan time, if you get the judgment settled or paid, and be sure that the attorney for Capital One gets the court record updated.
Make sure all payments are kept up on time from now until you close on the new loan.
I would definitely do something with how Nationstar is reporting that 120 day late. You have some time, so perhaps starting with the goodwill letter is not a bad idea. Post about the progress you make with this. I can help you further if need be.
Thanks. You have likely saved me a bunch of time. I absolutely hate where I live now and want to buy a $200k home and seeing this on my credit as a surprise has me panicking! My first thoughts were how to get it all removed but it seems that wont happen. Gonna have to do it the hard way….. I will update when I can on the progress. Thanks a million!
Hello,
I have defaulted on a credit card. I have the last statement from the original bank showing when I stopped making payments in 2010.. Sick with cancer and not expected to live, paying this debt was not my highest priority. The debt has been sold to LVNV per my credit reports.
Obviously I have survived but continue to collect SSDI which will be my income until I am not longer on this earth or it transitions into Social Security. The SOL will come long before this is an issue. I believe the SOL is 7 years.
I have not been sent anything by mail nor have they bothered me by phone so I have not sent a cease and desist /do not communicate letter. I did go to a attorney to discuss this several years back and he told me to just “forget it” unless I am contacted.
Recently I applied for a secured credit card to try to raise my credit score and I was approved. I do not have any large credit plans, just would like to have a better score than ‘poor’ to be able to rent a home. My plans are to wait out the SOL and then try to get the credit reporting agencies to take this off my reports. I have no money in which to barter with LVNV anyway.
Did I make a mistake in applying for a secured credit card? I also see that LVNV has added what looks like interest to the amount of the original debt too. Is that legal? It racks up to be about three thousand dollars over the original debt amount.
Thank you for your help.
What state are you in?
The interest LVNV adds may, or may not be legal. That would be determined by the contract you had with the original creditor.
I would not say you made a mistake applying for the secured card. It may have put an alert in front of LVNV, but it sounds like you are not collectable, so not to much to worry over unless you hear from an attorney licensed in your state. That would be a clear indication LVNV is ready to escalate their collection efforts.
WOW! You are quick to respond and I find your advice brilliant. I am very grateful.
I am in the state of California. I went to legal aid to get some help as I wanted to make this right but I am so below the poverty level it is impossible to consider this option. My home is gone, 401k gone…..all after a great career in Nursing. It was beyond my control. I had such great credit before this default of 8K. The default amount, is now over 13K, with all the interest applied.
I would like to build my credit and a well known bank approved a secured card for a $49 dollar deposit. I do not know if this had something to do with the small deposit amount but I had a card in fantastic standing with the same credit card company before I closed it. I was trying to put my affairs in order.
So I guess I slowly use this card, not going over 30% of the total limit, pay in full every month and hope 2017 comes and goes without hearing from LVNV. Would my family be responsible for this unpaid debt when I die if I do not pay it?
Thanks once again.
Being in California you are passed the 4 year SOL for LVNV to try to collect through the courts. You can basically tell them to pound sand with any collection efforts they make at this point.
You generally have to wait out the 7 year time limit for most negative entries to come off your credit reports. But attempting to dispute the item off now (as inaccurate somehow), would not cause collection fallout you couldn’t handle (they cannot legitimately sue).
You have not shared anything to make me think your family would have any responsibility to pay this collection after you pass.
Oh and the collection agency is SW Credit Systems Inc.
You can dispute this with the credit bureaus as a first step. If the dispute does not result in a credit report correction, or removal, I would file a complaint with the CFPB.
Before you do anything, get a copy of the report direct from the bureaus that have it. Verify that the account has been raged to stay on the report starting from 2013 (so not scheduled to drop off until 2020). Date open may just be the day SW Credit Systems received the account.
Hi Michael,
My husband has a few accounts in collections and when I look at his credit report the negative information is being shown by the original creditor and the collection agency. Is there anyway to get one of these removed? Also he has a judgment on his report and is currently making monthly payments based on the agreement established by the court. If we make a deal to pay this off will it be removed from his cr or does is a reporting of settlement pd sufficient?
Thanks, Alicia
Is the original creditor reporting the debt as a charge off, and a zero balance owed to them, while the debt collector is reporting the balance owed them? That is normal.
Paying the judgment off does not mean it gets removed. But it does allow his credit reports to start healing from the hit it took in the first place, which is often all you can do with this stuff.
You would be surprised what you can get done credit improvement wise, and how quickly, once your accounts are updated to show resolved.
Thanks for your quick reply. Yes the original creditor is showing a zero balance. One more question, my son has a collection agency attempting to collect on a Comcast bill from 2008. When does the 7 year time period begin for how long something can stay on your credit report. The collection agency is showing a much more current date…
Alicia
You start counting the time limit for collections to stay on credit reports from the date of the first missed payment.
DOFD is date of first delinquency. Is the collector showing a more recent DOFD? You can dispute that so that it is corrected. What is the name of the debt collector?
The only date that I can find on Credit Karma is the “open date” which is July 31, 2013. There is no mention of Comcast on his report anywhere.
Alicia
Actually I don’t even know if it’s my debt, I left in 2003. Does it take that long to take someone to court?
Creditors and debt collectors can take years to bring collection efforts to the courts. It is not that uncommon at all.
I had a judgement issues against me in 2007 in NJ, for an unpaid credit card. I was out of the country since 2003 until 2008. I don’t exactly remember what I owed on that credit card, but the judgement is for $9000. It doesn’t show up on my credit report anymore, 7 years have passed.
After I came back to the country I have been able to work on my credit and have a 767 score right now. Will the judgement be a problem for me buying a home? I don’t see it on my credit report anymore. Please help.
That judgment can show up in a factual or other type of underwriting report that a mortgage lender may run. If it does show up, it will likely impair your ability to get approved for the loan.
Who was it that got the judgment (name of plaintiff and the collection attorney that sued)?
Well that’s the thing. I wasn’t living in the country, I was living in South America for 5 years. I think it was Citibank credit card or GE Money, but Erin Capital Mgmt LLC appears on record. Is the judgement legal, since I wasn’t aware I was being sued?
You can have an initial consult at no cost with one of the collection defense attorneys I will email you contact details for. Ask them about the likelihood of vacating a judgment with your particular set of circumstances.
Let me know how that goes.
Hi,
Just wanted to let you know that in fact it’s not on my credit report. My broker ran my credit and I am good to know. Thank you so much for your quick response.
I wanted to add an addendum to my previous comment I just submitted:
I just searched my e-mails for any information or correspondence with Coastal Credit, LLC (who enacted a judgement against me for the balance of my repossessed vehicle), since my memory is a little foggy since 2009.
I actually stumbled across my credit report which I pulled on January 21, 2009. I thought I had fallen behind on payments, but apparently I had not. From August 2007 through October 2008, my payments were on time and “OK” as reported on my credit report to the bureaus. November 2008, I had an orange 30–my firstborn was born November 26th. It was the birth of my child that made me ultimately decide to voluntarily repossess the vehicle, since I wasn’t driving it, and felt it was unsafe. December 2008, my report shows a red RF–for repossession.
Looking at my current report which I just pulled a few days ago, the judgement was entered into VA Beach courts on January 14, 2009 for $8679.
They didn’t waste any time, and I don’t recall any outreach by them to try to obtain the money before a judgement was enacted.
Just thought I would disclose that I was always current on payments with the judgement that is in question until my voluntary repossession. I wish they would have never enacted a judgement! Ahhh, the rearview mirror.
Thanks for the additional details Kate. I can better suspect your answer to my question in reply to your first comment (I did not see this follow up until responding to your first entry).
It appears you only knew about the suit after the fact. But I will wait to hear back from you to confirm your answers to those two questions.
Good morning!
I just want to preface my comment by saying how appreciative I am for the information and insight you have provided so many people before me. I have read most of the comments and replies on this article, and it has helped to assuage some of my fears as I stumble to reclaim my credit. My friends always joke around about how loquacious I am, so I will try to keep this succinct and to the point.
I should have listened to my parents about the importance of healthy credit habits when I was 18–how I wish I could go back and make amends! I am now 27 years old, and haven’t had an open line of credit since….I was 18 or 19. I literally received cards in the mail, activated them, made a few payments, and then defaulted when I deviated from the “path”. I stopped out of college, joined the Army, and my debts went into collections. Recently–over the course of the past couple of years–I have witnessed most of these debts “fall off” of my credit report. I have to admit that this has been refreshing for me, as I have lived my young adult life without credit, and suffering from my poor decisions when I was younger. I have only recently (within the last couple of years) found myself in the financial situation to start tackling my debt and repairing my credit, simultaneously as the allure of my VA loan and the dream of owning a home has surfaced. I am tired of paying someone else’s mortgage for them, and would love to invest my money into something that will return the value down the line. The idea of owning a home is petrifying (although I think my experiences with my credit have contributed to this).
I requested my free annual credit report last week (as I religiously have over the last few years), and was pleasantly surprised to see that the sum of my debts right now are around $3500. The majority of this are unpaid medical bills (that were, for some reason, never run through my health insurance…but that’s another story). I haven’t had an open line of credit in years, and my old credit card debt has “dropped off”. There is, however, a looming black hole of a public record that I would like to address. It concerns an automobile that I had financed through Coastal Credit LLC while I was active duty Army in Virginia.
I have a personal vendetta against this company. I was young and naive when I took on the loan, and trusted the recommendations of a close friend who had purchased through a small dealership in Virginia Beach. I went in around August 2007, picked a vehicle, signed the papers (without reading….YOUNG AND DUMB!), and was ecstatic that *I* had been financed for a vehicle not long after encountering all of the bumps in the road with the aforesaid credit cards that were in collections (at that time). Well, the transmission blew on the vehicle (I kid you not) the second day I owned the car. While I waited for Starbucks. I’ll never forget it. I tried to address it with the dealership, who did have it towed and repaired. I requested to trade it in for another vehicle, etc… as it was under a 30 day warranty, and the owner avoided my contacts and persistence for the 30 days the lemon law protects you under. I paid my car payments through an allotment until I got out of the Army in February 2008. I continued to make my payments while I simultaneously fixed my lemon car, at an APR of 19% (if I recall), while on unemployment out of the service. I ended up ceasing use of the vehicle in October 2008 because it was incredibly unreliable and unsafe. I was late on payments, and then requested that they repossess my vehicle, which occurred in January of 2009.
After my car was repossessed, I received notice that it was sold at auction for just over a grand. The remaining balance was nearly $9,000, and certainly not anything I could afford off my unemployment. I didn’t even know how to react in this situation, and my instincts with credit at this point of time, was to simply avoid the debt. I resided in NY out of the military, and a default judgement was brought against me in April 2009. It is now almost 6 years later, and the judgement on my public record has had little importance to me because I have learned to live my life WITHOUT credit (simply, lamenting the fact that I had ruined it).
Fast forward to wanting to obtain a mortgage. I am now much older, wiser, and tired of letting my credit woes tug at my conscience. I have beautiful children, work in the ER as a nurse, and gross over 100k a year with my husband. We have settled into Kansas, and the rental market here is incredibly overinflated. We are renting a duplex that hardly accommodates our growing family, and I struggle with feeling like I am failing to provide my children with the childhood home they deserve. I contacted a lender specific to the VA loan market, and they stated that this public record will continue to prevent my abilities to obtain a mortgage as long as it persists.
While I harbor very personal feelings towards a lender that is notorious for financing lemon dealers…and very personal feelings regarding feeling taken advantage of as a soldier….I know that, ultimately, the responsibility falls on my shoulders. I am very motivated to settle this judgement as soon as possible, but I fear the unknown.
I have been doing a lot of research on the credit system, and the VA lender rep I spoke with was so informative and kind. My highest score (Experian) at this time is a 606. He referred to it as “being stuck in first gear” since I have such old debt, and no positive open credit. Then you add in the judgement.
The judgement, as I mentioned, is just under $9k. Back in the day, I would have rather declared bankruptcy than pay these people another dime for their tactics and ploys. I learned a valuable lesson that capitalism isn’t based on compassion. Or integrity. For the most part.
I have never heard from Coastal Credit LLC since being advised of the default judgement back in 2009. I have never had my bank accounts seized, or my wages garnished…and I have no assets for them to pursue. I would really love to offer them $2k, with the very realistic expectation that they will counteroffer. I worry that they will refuse to settle for less than the full balance…even though the debt has been “charged off”, though the judgement remains (and I believe it’s effective for 8 years in the state of Virginia…) The statute of limitations on the judgement is coming to a close soon, yet I know they can always pursue reenacting it. I would rather negotiate a settlement, and have it show as “satisfied” on my credit report. Then, at least, I can prove to a mortgage lender that the debt is, indeed, satisfied, and hopefully fulfill my dreams of becoming a homeowner.
Do you have any suggestions on how I can pursue this with the most optimal outcome? What are some key points I need to address with this company before I pay them an agreed settlement? I worry most about being beat around the bush concerning physical documentation of a verbal agreement. I plan on offering a settlement, hopefully negotiating terms, and then requesting a written statement on letterhead that they agree to satisfy my debt upon receipt of payment. If I obtain this letter, will I be able to forward this to the original court that issued the judgement? Or will the creditor? I am so worried that I will be led astray by this company, and I have a mentality that I can’t trust anything anyone says who is trying to collect a debt. They should put that in their spiel: “This conversation is being recorded. I am attempting to collect a debt. Don’t trust anything I say.” Just a suggestion.
If they refuse to negotiate with me, what are my options besides paying in full? While our financial situation is solid, I simply cannot afford to dish over $9k. I am hoping to resolve this and be in a home by the end of the year…which may be unrealistic, but I’m a dreamer.
What is the likelihood of the creditor reenacting a judgement if the SOL expires? Is it simple on their end, or a hassle for a creditor which hasn’t made any attempt to contact me or reel in payments through garnishment, etc… over all of these years?
I’m a really bad liar, and I cry at commercials. And I obviously ramble on and offer up too much irrelevant information (which may benefit whomever I speak with). I want to make sure that *this* time I have a plan in place which I DON’T deviate from.
Also, at the same time I pulled up my credit report this year, I randomly applied for a cc with Capital One. I was shocked to not only be approved, but to receive an initial credit line of $1k. It has blown my mind, and excited me at the same time–because I feel like I am finally getting an opportunity to rebuild after all of these years by keeping my utilization low and payments current.
Any insight into my credit situation would be the biggest blessing, as I have spent hours and hours researching, reading, watching and begging for more information that is similar to my predicament. I have to satisfy this judgement, but all of the reviews for Coastal Credit LLC have me petrified that they will have the mentality of “they have nothing to lose” by refusing a settlement. I worry that by calling them, and attempting a settlement, that they will refuse to settle and attempt to garnish my wages…especially since I make a comfortable living at this time.
How I wish I had a time machine!
I apologize for the long-winded comment, and hope that there was some cohesive layout of everything. Thanks so much for all you do!
Warmest regard!
Active duty military have some additional consumer protections. I would like to have seen you explore those options all those years back. But there may still be some things to pick apart from back then.
I have a few questions for you:
Were you living in New York, but sued in Virginia at the time? It is not clear from what you shared.
What is the name of the law firm that handled the collection suit?
I will have more feedback, and specific to your entire post, once I know the answers to those questions.
Hi Mike!
Thanks so much for your response. I was very naive back then–wish I would have explored my options, as well!
I purchased the car while on active duty in Aug 2007 and paid on it for 9 more months after I separated in Feb 2008. The voluntary repossession occurred in NY in Dec 2008, and they took me to a VA Beach court and had a default judgement entered Jan 2009. I believe I did get a letter in the mail advising me of the hearing, and later, a letter stating that it had been sold for $1100.
I don’t know who the law firm was. Perhaps I can call the courts and find out?
Please do find out the law firm involved.
It sounds like you were living in New York, but they sued in Virginia. That can be a problem for them, which is why I want to pin that down. Can you clarify the timing and where you with a bit more detail?
Do you know how I could go about finding out who was involved in representing them without contacting Coastal Credit LLC?
And, yes, I had been living in NY for almost a year by the time that they took me to court. The hearing was in VA Beach, VA, but I had left VA 11 months earlier when I separated from the military.
You can pull up the court record (some offer free access online), and find the attorney and law firm name on their filings.
I am going to send you an email with contact details for an attorney in that area you can consult with about your options to unwind, or otherwise deal with the lawsuit. You likely have service and jurisdiction issues to stand on. The issue being from that long ago presents a challenge in some states, but not all.
Hi Michael, I have a email that is between my debt relief counselor and an attorney(on letterhead) that is an agreement on a settlement that was dated a week before my court date. I foolishly didn’t go thinking that the agreement was reached and terms were set making court a moot point….wrong. The same attorneys that reached the agreement with FDR were the same attorneys that showed up at court at which time I received a Default Judgement. Something just doesn’t seem right here but I am afraid it is more of a moral issue. I would greatly appreciate your input.
Who was it that sued (name of creditor or collector)? Who was the law firm that handled the case?
What were the terms of the settlement agreement?
I will be better able to offer feedback if I had more of those above details. Also, what did Freedom Debt Relief say about the judgment (if anything)?
Hello again Michael, I was sued by Portfolio who was represented by Gamache & Meyers law Firm, St Louis, MO. I am paying the amount of $340 per month until Feb 2016. FDR never told me about the suit, I told them. I have an automatic payment of $1106 that is withdrawn by FDR and then placed into another account, CFTPay, that issues the checks to the creditors. In researching that account (CFTPay), it shows a check was sent to Gamache & Meyers on Sept 20, 2013 that was sent 2 day delivery and my court date was Sept 23, 2013. I just checked past paperwork and found an email from FDR congratulating me on a settlement with Gamache & Meyers with date of settlement Sept 25, 2013 with the settlement % savings being zero. The entire amount of $9995.11 would be paid. Again any incite is appreciated….good or bad!!!
Thanks for sharing more of the details David.
My feedback is all after the fact. It is neither good nor bad. What is already done cannot be undone. Would I have encouraged you to look at some other approaches back then? Yes.
You have a satisfied judgment. This fact will not necessarily hold you back from accomplishing your home ownership goals moving forward.
I been in debt program for about 41 months and about done now but I have collections, bad debts and settled for less than full amounts all over the place. I am 66 years old, retired military, 2 tours in SEA and it looks like the chances of my giving my wife a new home are nil. I do have a question but I would like to state that these problems were caused by me and nobody else. I knew what I was getting into and and nobody had a gun to my head. Now……I know better! My question is if i have a judgement that “the execution is stayed until the debt is payed, at which time it will be deemed fully satisfied”, will that judgement be filed on my public record?
The collections and settled for less showing on your credit reports are very common when signing up with a debt settlement company, or when settling debts on your own.
I am not certain what took place with the collection that reached the court. Did you reach a settlement on that debt that is still being paid? Have all payments on this negotiated deal been paid on time? Who was it that sued, and who is the attorney for the debt collector?
Hi Michael, Firstly it was a Consent Judgment Entry that was ” FURTHER ORDERED AND AGREED that execution will be stayed pending defendant(s) settlement payment in the amount of $6,602.32 to be paid to plaintiff in monthly installments as follows: 6 $50 installments to be paid beginning on 6/28/2012 and monthly thereafter until 11/28/2012
On 12/28/2012, monthly payments shall increase to $350.00, and will continue until $6,250 is paid,at which time a final monthly payment of $352.32 would be made settling the account in full. After $6602.32 is paid, this judgement will be deemed fully satisfied”. It then goes on about missing payments. Which none were missed as they were being paid by FDR. We received a SATISFACTION OF JUDGEMENT letter stated it was sent on 9/4/2014 from DAVID A KRAFT & ASSOCIATES, LLC, KC, MO. The attorneys that filed suit in behalf of AMERICAN EXPRESS CENTURION BANK. The terms of this judgement were the terms of the settlement between FDR and the attorneys. Thanks again for any help even if nothing is done. Sometimes somebody just caring is enough!!
If you approved the consent to judgment, and one was entered, there is not much to work with. It is likely part of the court record, and if it is, it should show as paid or satisfied. Paid judgments, and the paid or settled collections showing on your credit reports, will not always hold you back from getting a home loan approved.
Do you know if your credit scores are 620 or higher?
2 of my scores are 625 or higher and 1 is lower. 2 have gone up 10 points in 3 months. Me and Fair Isaac have become close friends. Thanks a lot Michael I thank you and from what I see you help a lot of other people too.
A 620 credit score is what many lenders see as a minimum to qualify you for FHA loans. Your middle score is higher than 620, so credit scores will not necessarily hold you back from a home loan. If all of the old debts are resolved, your current monthly cash flow, and debt to income, will be what to look at next.
You could connect with a local bank that offers FHA financing, or even look into any opportunities that may be available with VA loans.
Hello Micheal I had a judment against me during 2010 on a apartment I was evicted from since then I haven’t been able to find another apartment be cause it kept showing up on my credit when they ran it since then I have went thru the Lexington Law firm and it has been removed from my TransUnion and Equifax I was wondering would I be able to apply for a new one before it shows back up?
If the property management company uses TransUnion or Equifax as the source for their credit checks, now would be a good time for them to do that. You can even ask the person you drop off the application with who they use for credit checks.
Hi Michael,
I have a 4 years old default credit card debt judgement, and I’m looking for a lawyer in CA to do all the paperwork and negotiate a payment. I know it’s hard to negotiate judgements, but I’m ready to pay it off with a lamp sum payment. Now it’s around ~ $20K for a 2008 credit card debt, if we can get it down to 12K, it would be great.
Can you please recommend an experienced lawyer in San Francisco/Bay Area who can help me with this?
Thanks for your help!
I am sending you an email with contact details to Jeremy Golden, a highly experienced consumer law attorney in Southern California. Jeremy handles cases all over California, as distance is often not an issue in theses cases. Settling with the attorney that got the judgement would not require an appearance in court.
He offers an initial consult at no cost.
PS
In terms of the good, I have an auto loan that is in perfect standing over the past 2 years, another one prior to that which was also in perfect standing. My consolidated student loans are in good shape and Pay As You Earn means I have an affordable monthly payment tied to my salary.
Mainly wondering:
–if Good Will letters could help with some negatives on my old student loan records (which are now showing as paid in full due to consolidation, with the consolidated loan in good standing)?
— if Pay For Delete will help with the judgment/garnishment getting cleared from my records?
— if a new line of secured credit would help my score overall?
The positive auto loans add to my impression of fixing what you can, and giving yourself time. Once resolved collection accounts like the judgment, and student debts brought current have time to season, you will not be in all that bad a shape all things considered.
Good will letters on student debts are not likely going to lead to any credit improvements.
Hi Michael,
Thank you for all the advice, I have learned a lot reading this thread. Now I have specific questions. My credit score right now is 560.
1) I had majorly delinquent student loan debt (over 120 days late), including a full year of missed payments. I recently consolidated my student loans in Oct 2014 under Pay As You Earn. So they are no longer delinquent and are now in good standing, with 2 months of on time payments. But of course the giant string of missed payments show up on my history.
2) I have one credit account that has gone into collections and has a public judgement recorded and my wages are currently being garnished. The judgment was for a total of a little under $3,000 and I have paid around $1800 into it so far through the garnishment. Do you know if, at this point, a “pay for delete” and/or a good will removal letter to the creditors could end up with any results if I explain the situation? If so would I write to the original debtor, or to the collection agency, or both? I would be able to pay off the entire rest of what’s owed in January.
3) I have one credit card with $1,100 left on it, that is old and I don’t use anymore. It is in good standing with no late payments, but is at 65% of the limit. I will be able to pay it down to 1% in mid-January but not before. This one isn’t really an issue because I know exactly how to deal with it when the time comes.
4) Do you think it would help or hurt me to get a secured credit card and be responsible with it right now?
My immediate goal is to relocate to a new city in a different state, and get an apartment living alone. With my current salary I can afford it, my only worry is getting past the credit check. I’m also applying for jobs and want my score to improve in case they do a background check.
(The reason for the delinquency is that I had an injury that led to medical problems leaving me unable to pay my debt. The reason for the injury is, I was in an abusive relationship where my partner controlled my finances, and injured me badly including broken bones so I was unable to work, and when I was able to re enter the workforce he was controlling my bank accounts and mails. I left him about a year ago and have managed to turn my financial situation around completely. But the negatives are still there and my credit in ruins for now.)
2. A pay for delete on a judgment, and in the situation you are in with the garnishment, is simply not going to happen.
4. I would not apply for any additional credit right now, when you have at least one revolving consumer credit account that is updating as pays on time currently. With just getting your student loans out of default, and maybe getting your credit reports updated to show a satisfied judgment in the near future (by paying the judgment off as you suggested), I would wait to see what your credit looks like in 6 months before taking any addition credit building steps.
Thanks for the advice.
I am changing jobs next month, and the garnishment will not be done. Is there any way to contact them and pay off the balance somehow or negotiate a percentage? I just don’t want to follow me to a new job and I’d rather pay it off in full if that’s possible.
You can pay off the judgment any time. It is difficult to get a reduced payoff settlement for a judgment debt when you are being garnished (they know they are going to get paid as long as you have the job,and do not meet state exemptions). But when you leave that job for another, they will not get the garnishment amount until they locate your new job and get that in place. Negotiating the lower pay off a bit after you leave your current job is great timing. And the fact that you can pay it fully if need be means really have nothing to lose if you wanted to go for some savings.
hi,
I have a judement entered against me for $4100.00 but my credit report has the amount listed as $4,700.00. I wanted to pay the debt off so i spoke with the landlord lawyer but she has gotten no response from her. I’ve also sent her a email and left voice messages but she still havent responded. what can i do in order to get this issue resolved and off my credit report?
It is unlikely to get the judgment set aside from the court record in return for paying it off. But getting the court record updated to show it is now satisfied will often help you move forward with your credit goals.
Is the attorney trying to reach their client to get something you proposed approved?
The landlords attorney says she being trying to reach her as well but she is not getting a response from her. the next question i have is that can i pay the judgement to the court?
thanks for your advice
You can often pay the court directly. Contact the clerk of the court and ask about how to proceed with that.
Hi Mike,
I have a situation similar to someone who posted a while back:
I was in a car accident in 2009, and was personally sued for damages to the other driver’s car. However, I had attorney representation from Geico who handled the entire situation and I never had to go to court. There is a judgment on my credit report that shows “Civil claim paid.” I personally did not pay this claim (Geico paid it), nor was it late/sent to collections. It never affected me before now, so I haven’t looked into the issue previously; but recently I was denied a credit limit increase on one of my long-standing credit accounts and this judgment was listed as a reason why I was denied credit.
Is there anything I can do about this? Or am I forced to be denied credit for the next two years while I wait for this to fall off my report?
You are pretty much stuck with the outcome of that lawsuit being on your credit reports. And right or wrong, that unfortunately means some creditors will turn aside your business, or deny you additional credit access.
My question is this…
We have a judgment filed in our name from 2009. It is scheduled to fall off in 4/16. Weare selling our home and want to use proceeds to pay off our debts. My question is will paying this judgment reset the clock for removal? WE are hoping to buy another home in about a year. Our scores are currently in the low 600’s. I also have someolder collections that I want to pay off. The collection agencies are midland for 4500 and portfolio collections for 570. The original creditors were Barclay credit card and Orchard bank credit card respectively. We live in louisiana. Will paying off these old ddbts hurt our score. We have established some new credit recently with cards from capital one. We also have some auto loans in good standing.
They do not get a new set of years for credit reporting with judgment debts of this nature.
You may see a temporary drop to your credit scored due to the freshness that comes to the negative entries by their being updated as resolved. But then again, you may not. It will depend on the scoring model used. In any event, given a year between getting the judgment paid, and other settlements updated to your credit, you could be in good shape for FHA type of underwriting approval.
Hi Mike,
I have a question about a judgment i received in 2009. I had a car that was repossessed in 2008 and they sent me letter telling me that they sold the car at auction. They decided to take me to court over the remaining balance that they did not get in the auction and I was served the papers but during the time we were suppose to go to court my daughter had just been diagnosed with cancer. There was no way I could make the court appearance, due to the fact she was undergoing treatment.
I have been contacted by the collection agency that holds the account and they offered me a lower settlement but at the time I couldn’t pay what they were asking for and I am in the process of trying to buy a home. That judgment is my only hold up. What is the best way to approach the collection agency to get a settlement that is in my budget? What should I ask for when speaking with them? I was thinking about being beside a fax machine so that if a agreement is reached they have to fax over a document that states the debt has been paid so I can take it down to court house and to my lender.
I am desperate at this point because I lost everything in a one year’s time frame and I am now able to at least get my kids back into a house that they can call theirs.
What was the amount of the lower settlement offer they made prior, and what was the approximate date the offer was made?
You can settle this judgment, and still save money, but what are you budgeting for?
If you were declined a home loan, your credit is going to show the inquiries. Debt collectors use software that gives them real time access to your credit reports if they want it. You may/may not look like a file that should pay more to them as a result.
Thanks Mike for getting back to me. They offered me a one time payment of 5000 or 9000 paid over 4 years. This was back in March of this year.
Oh I am budgeting for 3000-4000. Nothing more than that.
You have a shot at settling for under 50% with a judgment this old. If you stick to your guns and convey a hardship scenario well, one that takes into account that debt collectors have real time access to your credit reports, you can do this. You do not have to get all this done on a single call.
Read through this article and the many comments for tips and information you can use: https://consumerrecoverynetwork.com/how-call-bank-negotiate-credit-card-yourself/#comment-168673.
Michael,
I’m applying for an apartment and my credit was ran and its showing that as per Experian I have a judgment. It’s in TN, the SOL has passed which is 10 years and its not on my Experian CR, however I was told it’s showing up through a 3rd party. How can I get this removed? I have contacted the court and have spoken to the clerk who advised me to request a “10 Year Letter.” I’ve done this and have it. I called Experian and they told me it wasn’t on my report, however it is showing up when a credit check is being done.
Ask the apartment complex which report they are relying on for the denial. As soon as you know that, post who it is and lets go from there.
I was told Experian is who they run credit with.
Hi Michael,
I have a question about this Court Judgement that I just notice a few months ago. I’ve try to contact the Apartment complex but no one return my call. At that time, my ex and I were living together. I was the main co-signer on the lease for the apartment. I want the Court Judgement removed by I’m not sure which route I should take. I went to annual report and got to look at all three credit reports to find any information. But after looking at all three, I didn’t find any information on collectors/debit collectors. I want to talk to the clerk and file papers to do installment plans but I’m a bit scared about the garish on my wages.
How much is the judgment for? How long ago was the judgment entered in the court record? What can you afford to pay each month? What state do you live in?
If you can post your answer to those questions, I can likely be of more assistance.
Had a summons delivered on Aug. 7, on summons there was a number to call to settle debt to keep out of court which was scheduled for the 27th. Contacted and number was dead, left messages with no response, but attempted contact for 17 days multiple time per day. Finally looked up attorney online and called the office, explained that we would pay in full to avoid court, they accepted payment on the 24th, and on the 27th the attorney went into court and filed judgement against us AFTER agreement and monies were exchanged. I have the receipt for payment with their letterhead on the 24th signed with case number and recipient of monies, the judgement was filed on the 27th and the 10th of the next month I hold the letter where they advised the court that the matter was satisfied in full. Is this not a clear violation of (4) of the the FCRA?
I am in Tennessee, and this kept us from a refi that would have saved us over 230K and we missed the opportunity,
While I could contact the attorney that received the payment, I feel that I have been violated, and even if it was by mistake, I paid dearly fort he mistake of missing a single bill out of many over the same period. I feel that since the number given by the attorney was never answered, and the fact that the judgement was filed three days after agreement was made, that this could be an intentional attack on us for not paying the bill prior. Any idea who in Tennessee who could not only remove this illegitimate judgement, but also look to see if I can recoup the damages done by the frivolous attack on my person?
It is time for the people to go after these collectors with no morals and act as slimeballs against the people for profit. While I would be satisfied from the removal of this judgement, I feel I have suffered damages, and mistake or not I didnt have a day in court to represent myself as I was told not to appear on the 27th as jno action would be taken.
I sent you an email with several consumer law attorneys in Tennessee listed. All of them have debt collection defense experience. And that is how I would approach this, as it is the court record that needs to be addressed in order to permanently affect your credit reports.
Post an update with your progress.
We got a summons from a medical collections agency and I have made a payment agreement with them (I can not pay in full at this time). The court date is in November and I am wondering if I need to file a response with the court? And also what will this do on our credit (a judgement against us). They say I don’t need to do anything but I am trying to be sure what the consequences really are. Trying to rebuild our credit and just want to know if I have any options. Colorado
Juls – If you are trying to rebuild your credit, you will want to do everything you can to prevent this lawsuit from turning into a judgment on your credit report.
What is the amount owed?
What is the amount you agreed to pay each month?
What was the date you were served the summons?
How old is the debt?
Judgements on credit reports are not the end of your credit options. Once the judgment is updated to show paid/satisfied, you can go on to accomplish goals like refinancing, or purchasing a new home, while the judgment is on the reports.
Hi,
I was sued several months ago for a private student loan in default which was sold to an attorney.
I went to court without a lawyer (stupid) and admitted to the debt, I mean there were papers signed by me so what could I do. However, the judge told me to write a payment plan proposal to the attorney offering a certain amount. I would then be advised if it was accepted or rejected.
I never got any letter or document in response to my proposal, nor did I receive a notice of the Consent to Judgement. Suddently they garnished my bank account I had no forewarning whatsoever. They are also claiming to be attempting to garnish my wages for 25%.
I looked up my credit report on Kredit Karma and saw the debt was delinquent status and open. However, today I looked at it again and the account was removed.
What does this mean? I probably am foolishly hoping it means something good for me, but I am hoping for some sage advice.
Thank you
The student loan not showing on your credit report in the normal way it was prior could just be temporary. And it sounds like the judgment that is now in the court records has not been updated to your credit reports yet. But that is a new blemish you should realistically expect to hold you back from achieving future credit goals until it is resolved.
It would be a good idea to consult with an attorney now. Also, you do have options to contest the garnishment. Ask the court clerk about requesting a hearing to contest. And keep little money in your bank accounts for now, until you come up with a plan.
Here is more details about dealing with judgment debts: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
I have a question. I have a judgment from C&F Finance company for a car loan. At the time of the claim being brought against me my daughter had just been diagnosed with cancer. I had no choice but to get her to radiation and chemo treatments. I could not to court and defend myself. I live in NC is there any way I could get it vacated or is that just too late? This company is known for it’s illegal practices with debt collections and court cases against it’s consumers. Please help because it’s been 6 years and it’s my only hold up with buying my house.
I think you will have a real hard time getting a judgment 6 years old vacated. If you have a shot at it, it would likely be from hiring an experienced consumer law attorney, which has a cost and risk. You may be able to settle this for less than it would cost to challenge it in court. Paid or settled judgments can still get you approved for a mortgage.
How much is the judgment for?
Hi michael
I have a judgment on my credit report I’m trying to get removed I’m just not sure how to go about removing it the judgment is for a bail bond I Co signed for a friend’s friend and they never went to court but were caught I believe within 30 days after there court date and now i found out i have a judgment because of this and i don’t know if there is anything I can do about it there is also 3 other people listen on the judgment for $14,000
I would want to talk this over with a debt collection defense attorney before doing anything else. What is the name of a nearby larger city?
There is no “large” cities Toms river nj is probably best
I sent you a short list of experienced attorneys you can consult with. All of them are about an hours drive away, but that should not be an issue.
Mr bovee,
i have a judgemnt in texas from an eviction in 2008. i finally am in position to pay off the judgement, but the apt. complex has been sold atleast once, perhaps twice. Tried contacting the complex, and after being sent to multiple people in the owning buisness (northland) i was told they cannot help me. I was told i need to send a certified letter to the complex, informing them that i have tried to pay, and they have not giving me a route to do so, so i can trigger a hearing with the JP Court. What should such a letter say? where might i find an example?
I would work with a consumer law attorney on this, and one with experience defending people against banks and debt collectors in the court.
Post the name of a nearby larger city and I can help you locate one.
hi michael!
I need help in improving my credit score. currently it’s at a 531.. I have all medical bills that have a negative impact on my score. i didnt have insurance at that time. I also have student loans still showing but because I started paying on them they are out of collections and are out of default, but I haven’t seen any change on my score. and lastly I have a court judgment on my report from an old medical bill. now when it comes to that, as soon as I received the judgement I payed it off within a few weeks. I also received a satisfaction letter as well. now my concern is why is this still on my credit report? currently I have $1483 in collections for medical bills. I don’t have much credit established which is why I believe I have such a low score. what if I pay off all medical bills.. how long will that come off my report? what can I do to improve my score? and also I need assistance about my court judgement even though I paid it.. why am I still seeing this on my report?
When did the student loans come out of default?
When was it that the judgment was entered in the record and then quickly paid? Is the judgment showing as satisfied on your credit reports now? It will typicality take 7 years from the date of judgment entry in the court for that to fall off your credit reports. But it does not have to hold you back from your credit and finance goals that whole time.
While you need to resolve the old medical collections on your credit report, you also need to establish credit. You have a thin credit file. And what is there is stuff that hurts you.
How long will it take to resolve and pay the medical bills outstanding? How old are those debts? What state do you live in?
my loans came out of default in august. and no, the court judgement still states “filed” on my record. which was filed November of 2013 and I payed it I believe in December. I called the court and they have in their records that it was satisfied but it’s not reflecting that on my score. also after logging into credit karma I had 7 medical bill accounts removed recently as well, but I saw no change in my score. 3 of the 4 medical bills are from January 2014 and the last one is from 2 years ago. being that it’s only 1483 I will most likely pay that in full or most. and I love in ohio.
I would send a written dispute to the credit reporting agencies regarding the satisfied judgment. Send that certified mail return receipt. Include proof you paid the judgment. Keep a copy of all communications and the green return card in a safe place. If this does not get the credit report updated post an update.
Get those medical bills taken care of and updated to show as being resolved with a zero balance(does not really matter if you pay in full or settle for lower lump sum). Once you do that, start adding good credit history. I like the credit matching tool available at http://www.credit.com. Look for an unsecured card that is the most likely to approve your credit profile, and get one card for now. You may need to start with an unsecured card, and I like Bank of America’s program for those.
Hi Micheal
I really hope that you could help me here as I am not getting any satisfactory responses to this situation:
I was a student in US since August 2005 and left US in June 2007, when I left- I had 3 credit cards issued in my name. During my stay, I was always particular of not missing any payments and making sure that what I owe was paid in full every month. Recently I got a job offer to move to US in Feb 2015 so I decided to pull my free credit report and I am shocked to see the below details:
– 3 special civil par dockets 6k+5k+1K (date filed 1/10, 10/09, 7/09)
– credit card 1 (4k limit maxed to 5K) in October 07 (after I left the country for good)
– credit card 2 (4k limit maxed to 5K) in Feb 08 (after I left the country for good)
– credit card 3 (3k limit maxed to 3.5K) in October 07 (after I left the country for good)
– credit card 4 (1k limit maxed to 1.5K) in Jan 2008 (note: the issue date of the card is 08/2007 after i had left US)
– there are 3 collection companies listed
(1. saying account paid in full for $128),
(2. status in collection for 5k) and
(3. status in collection for 5k)
I called the banks and they have no history of transactions as accounts are closed and sold to collections which is very frustrating.
removal dates as shown
Credit card 1 – 12/14
Credit card 2 – 9/14
Credit card 3 – 10/14
Credit card 4 – 8/14
My Biggest mistake that I dint cancel my cards before leaving US
Please advise, i have this great job offer that i have to accept by December or I will lose it
Thanks in advance
Ash
What state were the lawsuit in?
What are the names of each plaintiff that sued?
What state will the job you are thinking about taking be in?
Good Afternoon,
I had a CC debt that I paid over 2 years to arrow financial. At the end of my payments, they were purchased by LVNV. LVNV filed a judgement against me for the original amount of the debt. I stated I had paid the settled amount, they did not reply except with demand for the original amount again. A summons was served to a person who did not reside in the house and due to the fact they were a caretaker, did not leave the summons where I could see it. The judgement showed up 2 years after and I am afraid to contact them as I know they can garnish wages. I have record of the payments made to Arrow financial, I do not have the original settlement paperwork as it was in 2008. Would an attorney be best to handle this or can I take care of it? I do not want to pay this debt twice.
What is the name of a nearby large city? I can help you locate an attorney you can talk with at no cost initially, in order to learn more about your options.
Hello hope u are able to help. In oct 2004 a judgement was taking out againt me for 2302.84. Well fast forward to today i got a civil summons from them again Its from Turnip Investments in charlotte NC. Before the judgemnt i was paying them $150 every month i want t say . Well i paid on it for over a year and almost went broke. After paying for a year i got a statement from them and owed more than what i started with. Now after interest is 1583.63 plus annother $200 in fews. What if anything can i do so hey dont garnish my check or freeze my bank account Thanks for the help
Judgment interest in North Carolina can be as much as 8%. If that amount of interest was accumulating since 2004, I can see where your payments to date have only knocked down the balance this much.
Can you pull together a lump sum amount to offer as a settlement for less?
Yes i may be able to Ho much should i offer? I just got the one from today guess it is called re judgement?
also forgot to write that i havent paid any of it since 2004
When negotiating in a situation like this, it is best to be prepared to settle for 60 to 80%. Is that something you can realistically round up?
So are u saying 60 to 80% of the total amount or the beginning amount? Also what will happen if I’m it able to pay it off can the freeze my bank account? Also I have read where in the state of nc they can’t garness my wages Thanks for all the help
Off of the total owed as of today.
You are generally safe from wage garnishment in North Carolina. Your bank account and other property are at risk, but there are some limited protections there too.
Ok thanks for all your help do u think it would be a good ideal if I can get it lowered to pay with a credit card? May be a dummy ?
You can pay some debt collectors the settlement amount via credit card. You will have to ask about that. Just be sure it makes sense for you.
Hi Michael,
I have a situation that is concerning me about a judgement against me that is rather unique involving 2 states. I will be 35 year’s old next month, and the judgement is originally from a credit card from when I was 18/19yo in Michigan. Just before the SOL was up, they served me with this judgement in 2/2006. In 2008 I moved my family to Florida to attend school; we ending up staying here permenantly because I got an awesome job where we are all happy. I had my wages garnished here in Florida in 4/2011; I mailed an objection to the court and drove to Michigan to dispute the garnishment on the basis of Florida statute 222.11. This states that all disposable earnings of head of family whose disposable earnings are less than $750.00 a week are exempt from garnishment, and if over that amout, you still must agree in writing. Well, I won the objection in my favor and was awarded all moniey to be returned, and for them to stop all garnishment activities. The 10 year SOL is around the corner (2/2016), and I am preparing for home purchase in a few more years. Would it be in my best interest to ignore the judgement in hopes I dont wake them, and they dont bother to renew for another 10 years. Or more logically pay the balance if they agree to dismiss/vacate the judgement before it sits for another 10 years if they decide to renew, as this is the only way they will ever see any money collected for this judgement.
Current fico is 594 average between the 3 reporting agencies. I have a few other small derogatory items under 300, like 3 of them. My student loans are around 30,000, and are in good standing on Income Based Repayment Plans. I have one secured credit card from my credit union, and a small $1000.00 personal loan in perfect standing; minus the high balance on the card (which I am paying down now with lump payment). I also have an unsecured credit card now to help rebuild credit; and just got approved for my car loan for $12,900 last month; but the interest is relatively high due to me being a risk.
What options would be best in your opinion on the judgement; for me to be in the best position for home loan approval at the lowest rate in the next few years. Thank you for the time reading this; I wanted to be very specific, so you may have a more educated opinion.I really value your input and hope to hear back from you.
Thank you for all of the pertinent details Patrick. It helps me, and other readers too.
It is trivially simple for the debt collector to renew the judgment. Given the credit improvements you are making, and your stated goals for the near future, I would settle the judgment debt in order to get that updated in the court record, and therefore your credit reports.
How much is the judgment for?
The judgement was at $2000 when I received notice of garnishment in 2007. It was from a credit card that had a limit of $500.00 orignally. I am leaning towards paying them in or around full balance if they will vacate/dismiss it; do you think that would be in their best interest? But if I pay off before they renew it, would it matter if they dismiss it or not, being that in just over a year it will be removed from my credit reportanyway because the 10 years will be up. Thank you.
It would be extremely unlikely to get them to agree to vacate the judgment. You can expect them to file a notice of satisfaction with the court. Once that is on record, data miners that feed court records to the credit reporting bureaus will pick it up and your reports will reflect the resolved status. You can expedite this process on your own if need be.
Paying in full or settling for less will carry the same benefits at this point. Because they have tried to get paid, and have not been able to take advantage of the extra ordinary collections afforded judgment creditors, you can likely negotiate a lower pay off. But mentioning your concerns about credit reporting, or talk of vacating/dismissing the years old judgment (that is not going to happen anyway), can lead to judgement creditors being much more stingy with the settlements they approve.
Thank you Michael. You always have such great advise on here. Best choice would be to settle with them in exchange to show judgement as “satisfied”. Would it still be removed from credit report in 2015, even though I just made a payment to them in full?
Yes, the paid judgment would still fall off of your credit report on schedule.
Thank you for all of your help; I am very appreciative.
Hi Michael,
I too have a judgment on my credit report from an EDD overpayment in California (Nov 2009). I now live in Washington.
My questions:
1. Will this fall off my credit report in 2016 without any further action from me? Or is there something different/special about this type of debt/judgment?
2. Can a judgment still hurt me down the line after it falls off my credit report?
I don’t have any immediate plans for a mortgage, and have no real need for other types of debt now (my credit score is in the mid-700s and I have access to plenty of revolving credit that I never maintain a balance on). I could easily pay off this judgment, but I’m trying to determine if it’s A. even necessary to do so and B. potentially harmful in any way.
Thank you,
Chris
How much is the judgment for?
The original amount was ~$400, and the judgement is for ~$2000. If it’s best/easiest to just pay it off, that’s fine by me, just want to make sure that’s the best option.
It’s there because of a weird situation where I took a job in another country for two years, and during that time a judgement was filed (without me ever knowing about the overpayment in the first place). I saw the judgement as soon as it appeared on my credit report, but EDD had no sympathy for my situation. I’ve always been a little miffed by the whole thing, but I’d pay it off today if that’s the best option.
Before you look at paying it off, talk to the attorney I am going to send you contact information for. Adam has had success getting older judgments vacated and set aside in California. He offers a no cost consult, so the price is right to see what he suggest may be possible. If he is able to reverse this it would be worth it. If your file has something about it that suggests you just pay it, he will tell you that. And if he does, I would pay it if I were you, and I could afford it.
Thank you! I’ll give him a call.
Hello,
I’m in Charlotte, NC , the collection agency is Escallate, LLC in North Canton, OH. Are the legally allowed to charge interest on medical debt? I researched, but from the legal jargon, I can’t tell.
Do you have the original agreement with the service provider? If so, is there any reference to fees and interest?
Hi, I have a question and an issue I can’t figure out. I applied for a loan and was denied. After getting my credit report I found 2 judgments listed that I knew nothing about. They are from NCO and MIDLAND both filed a month apart in 2010 I believe is listed as date filed but they swear they file them in early 2009 but that is also a side issue. After raising questions about the legality of judgment i.e. service, court jurisdiction, age of debt because I honestly did not remember them(if they are mine) and asking for account information as well as process they went about in obtaining the judgment and copies of the judgment as well. I also contact the State Attorney General and Consumer Financial Protection Bureau and raised my concerns as to the validity of the debt and means they have used in its collection (default judgment). The judgments and associated abstracts have disappeared from court records for MIDLAND and for NCO the judgment no longer shows but the abstract is still there.
The letters I recieved from NCO indicated that the case was closed for them and that they were no longer collecting the debt for the creditor. The filed the court records in the name of the original creditor and theirs but the credit report says they are sole owner. The letter seems to indicate that a debt buyer was actually the owner not the original creditor at the time of the suit. However, the listed the original creditor in court records as far as I know. The record disappeared from the county recorder records online before I could get a copy. Midland the same happened after raised the same issues and contacted the same agencies.
I call the county clerk trying to verify why the records no longer appeared online. The lady told me that no records exist as far as they know. I asked how can they disappear and she said they can’t unless the plantiff withdraws them otherwise they are “like a birth certificate, you can’t undo a birth and the records can’t just be removed.” I currently outside the U.S. temporarily and have been at lost how to proceed. The credit bureaus keep coming back that the “verified”. However, information such court address, non working court phone number and improper court name are on the credit investigation results. The results list the court address as one place and credit report list it as a different one.
I am at a lost because I can’t verify the judgment by obtain copies from the county clerk. The credit companies say verified but how can they if the county clerk say the no longer exist. I am handling all of this from outside of the country and at a lost how to get legal representation and not be in country. The state is California. I am worried I found a clause in California that indicate can challenge judgment within a certain time after first “discovered” or some wording to that effect. I can’t if I cant even get basic information on the judgments which according to the county clerk don’t exist anymore. Help!
I would contact the CFPB and file another complaint, but this time under the credit reporting heading. If that is something you have already done, I do know an attorney you could speak to about challenging judgments that are more than a year old in California. He has had success with getting older judgments vacated.
Have you already tried to address a credit reporting complaint with the CFPB?
Mike,
Back in 05′ I enrolled at ITT Tech, the signed me up for Sallie Mae student loans when I told them I had my GI Bill that I wanted to use. Long story short I ended up with like 5k+ in student loans. Before I used to see Sallie Mae on my credit report but just recently I applied for my first home they said I had a score of 635 and got me in a VA Loan, but I no longer see Sallie Mae on my credit report. Not do I get any letters from them. Can that still affect me from getting my first home? Even if that’s not in my credit report any longer!
I must add that this was while I was in the navy, I couldn’t continue going because my ship was in and out to sea. I never made any type of payments to Sallie Mae.
Because this page is about dealing with judgment collections, I should first ask if you were sued for this debt?
Mike,
No I was never sued for this. I actually do se Sallie Mae on my credit but it shows under my Credit portion and they show Paid XP/TU/EF and one says Transfered to another lender.
No, I do not think this will gum up your home loan approval at this point. Post an update with how everything progresses, but especially if any flags come up.
Hi Mike,
I’ve read a lot of the comments here so it answered some questions I had, but mostly I just would like some advice on how I can improve my credit score, or if it’s even possible. I’m 28 and ready to think about buying a house in the near future. Probably within the next couple years.
My credit score sucks to put it plainly. I have a 539 (this is from creditkarma, sorry). According to that site, I have improved my score about 18 points since June by clearing some things up. I have a court judgment that I’m currently being garnished for in the amount of $2400 from an eviction because of a break up in ’09, 5 medical accounts in collections from a motorcycle accident in 2010 and 8 student loan accounts in deferment. The thing is, I have no credit cards. I have tried to get one a couple months ago and was denied, even for Fingerhut(how embarrassing). I’m pretty sure a secured card is all I’m going to be able to do.
I think my score really plummeted because my student loans showed late payments for 7 months! It’s all figured out now but I don’t think they’re going to remove the late payments off my report. Haven’t asked though.
Anyhow, this was long-winded but what do you think I should do according to your experience and expertise? Any advice would be greatly appreciated.
Side note: I wish my parents would have told me how important credit is so I wouldn’t have been so dumb when I was younger!
Thanks!
To reach your goal of home ownership in a couple of years, you are going to want to get any collections accounts paid. Those bills, even if they cannot sue and get a judgment like the other one you have, will weigh down your ability to get a home loan approved. And there is little you will be approved for to rebuild credit right now too (as you are learning). If it were me, I would stop applying for credit of any kind right now, and focus on a plan to resolve the debts.
Questions:
What are the totals on the medical debts? Are all of them showing on your credit reports, or are there some that are not on there? List all.
What is the amount still owed on the judgment? How much are they getting from the garnishment each pay check?
What room is there in your monthly budget to consistently use to improve your debt situation?
What is the total of all student loans?
Hello, I am about to pay off the remainder of a large credit card debt. How do I get the court judgement removed from my credit record once this debt has been repaid?
The court judgment will likely remain on your credit report for 7 years from date of entry. When was the judgment entered in the court?
You can make sure that the judgment is updated to show paid and satisfied in the court record. Once your final payment is made, give it a month or two to update. If you need to get this done faster you can take all of the documentation and dispute the credit reports to get them updated.
Hi Mike,
I have a judgment against me. It came at a very bad time in my life, two immediate family members died within a few months of each other, both unexpected, and to be honest, I just didn’t care. Now I’m trying to buy a house. Here’s what happened- Judgment received for Collection Agency A. Two years later debt sold to Collection Agency B. I settled with Agency B, paying an amount slightly less than what was due and about $200 less than the judgment amount of $1047. Agency A has no record. Judgment appears as unpaid. The judgment is due to come off my credit this winter. I’m due to close escrow in two weeks, and this is holding things up! Agency A responded with- we don’t have a copy of the judgment and it may take 6 months for the court to respond. Once they respond, we’ll forward the copy of the judgment. I can’t get it vacated, they followed procedure. How do I at least get it reflecting as paid?
Getting the judgment updated as paid is the most realistic expectation to have.
What are the names of the debt collection companies involved, and any attorney collection firm?
What are the dates involved (when judgment entered, when you paid what you negotiated)?
Was anything documented regarding the payment you made, and written agreement with the collector?
As of this September, I will have completely paid off a court judgment from Capitol One Bank. What do I need to do to have the law office (Fred Hanna and Associates in Georgia) send satisfaction of judgment letter to the court? Will they automatically send this letter or will I need to contact them? Thanks.
As a general practice, the Frederick Hanna firm will update the court record that the judgment is satisfied. It can take a few months for your credit reports to show the judgment is paid. Do you have any financing goals in the next few months?
I am looking at purchasing a new car due to mine being high mileage and getting horrible gas mileage. I have recently opened up a new credit card (abount 3 months ago) in an attempt to also help my credit score. My bank reported my credit score was a 644 but would not approve an auto loan – they stated the reasons as the judgement and my other debt being too high (it is a student loan though and I make my payments every month). I may just end up having a parent co-sign on the loan.
Hi Mike,
I have a question for you. In 2010 my husband got a judgment against him for a credit card gone wild. We both lost our good jobs during this time due to lay offs. (not at the same time) But we were really struggling. We got into a program and got all our bills taken care of and paid, except for one . He got a judgment against him with arrangements to pay $35000 in payments of $1000.00 a month. It got paid off a year ago! We even over paid and got a refund. Sadly we can not get the creditor to send a satisfaction of judgment letter to the court. All they did was send us a letter that says our credit card for $24000 has a zero balance. It shows nothing about the court amount.
When we called to request it because we were applying for a loan, the creditor said WE have to send them a copy of the judgment. (even if they sued us?) I guess they hired a lawyer that practiced in New Mexico because they are out of state. We made all payments to their lawyer. They said that lawyer no longer works for them, so now we cant get our credit fixed. No loan for us. I have looked on line and I have been told DO NOT SEND THEM A COPY. I dont know how else to fix this. Any ideas?
Where did you read not to send them a copy?
Was this a lawsuit from Zwicker and Associates? I had a file not that long ago where something very similar happened. Who was the plaintiff?
I would file a complaint with the state bar association against the attorney in state, and the attorneys out of state you are now communicating with, if they have violated any timely court notice norms. I would also file a debt collection complaint, with all the details, against the bank or debt collector plaintiff, and the collections law firm.
Post an update with how that progresses, and lets go from there.
Hi Mike,
Thanks for replying. No it was not Zwicker. Plaintiff was Citibank the law firm was Ferrall and Seldin out of Colorado but licensed in NM. I saw on a few blogs that said asking for a copy of the judgment is a common tactic that creditors use, and it said not to send it. I don’t know why but I was afraid to find out. When I called the negotiators they also told me not to send it. Not sure what can happen but glad I didn’t send it.
Here is an update since my first message. I contacted the credit negotiators that helped me with all the others, I figured I paid them to handle Citi in the first place. They contacted Ferrall and Seldin for me and told them that Citi would not issue the satisfaction letter. They said that they would start looking into the matter ASAP. I guess they were not aware, because Citi no longer was using their law firm. So this is going to be awhile.
I don’t know if I will get the Satisfaction of Judgment letter but I wont stop until I do. We have really worked hard to fix our credit. And paid through the nose for it. If I don’t get it, I will do all you suggested. I guess I’ll give the thirty days, then it’s on.
I just know they are going to come up with something so I cant get my letter. They have been so ridiculous all along. But I am a weirdo, I keep records like no one you know. I have so much documentation. If it goes back to court I hope it helps.
Thank you for all your suggestions. I hope I don’t have to use them, but I will do all I have to. This all started in 2008 and I have finished paying my dues. I just want this resolved already.
Have a wonderful day.
Thanks for the follow up reply Eve.The documentation will come in handy if you later need it.
I would give Ferrall and Seldin the 30 days if you are up to it. After that, I would file my complaints with the CFPB and the New Mexico bar association.
You did not say who the settlement company was you worked with that called Ferrall and Seldin, but if you do not get results, you can call Ferrall and Seldin yourself. You are not at risk of anything here if they were already paid. They are the ones that dropped the ball.
HI MIKE,
Just to update you. We contacted the AG in our home town that sent a complaint to the CFPB, we got our satisfaction of judgment letter. Lol, but they sent a cover letter that said they settled at 50% with us. As far as all my bank records show they are nuts! They claim that we paid 17500 starting in 2012. But the court ordered payments stated in 2010! I dont know what games they are playing but I can sure use a refund of the over payment. Do you think I need a lawyer? This is getting crazy! I’m afraid they will try to send us a 1099 for the write off.
Were your payments toward the judgment going through the debt settlement company first, who then paid the attorney for Citi? Were you making the payments yourself, and directly to the attorney or a court office?
Hi Mike
Sorry it took so long to respond.
All payments were made to the Law office directly from us. We sent checks for all payments but the last few months we had them draft it from our bank account.
Another thing that is driving me insane, I requested a copy of our credit reports. Citi has been check our credit and sending us credit card offers constantly. (You know how it tells you who is checking your credit scores? I hope that makes sense..) Doesn’t that lower your score a little?
How do I block them from doing that?
Thanks again,
Eve
If your agreement was to pay the amount you sent, and they screwed up how they worded it with the recent court filing, you may be able to fix it. You would likely want to pay an attorney of your own to try to get it changed to reflect you paid the judgment in full. But why? A satisfied judgment is what you need to realize your finance goals, and you have that now.
Those Citibank inquiries on your credit reports are not hurting your credit score. Those are soft credit pulls that are promotional in nature. If a creditor were to pull your report after you applied for financing, they would not see those promotional inquiries.
You can opt out of promotional screening if you like, or even get a credit report freeze (a bit overkill unless you need to for security purposes).
Thank Mike,
I’m just afraid that they send me a 1099 for the write off. And if no one can see the promo pulls then I’m fine with that. I guess I’m just so frustrated with them, I keep thinking they are messing with me. But I guess you are right.
Thank you for putting my mind at ease. You have been a great help through this.
Eve
You have a record of all of your payments for the judgment. Just keep them in a safe place. If this were to some how pop up (I kinda doubt it will), you have the records to show the IRS that you did not benefit from any forgiven debt.
Hi Mike,
I have a question. Late last year I received all three of my credit reports. On one was a civil case, a medical bill, that went to court. I never knew about it but I knew it was valid from who initiated it. I ignore it and didn’t think much of it because I assumed I’d pay it off with my taxes. Low and behold, a few weeks later I get a certified letter from my county court stating that the case has come and gone and I owe nothing! $0! I was wondering that since the case ended in my favor does that mean they are required to delete it from my credit report?
Thanks in advance.
It could mean just that. What is it that is shown in the court record? Is it shown as vacated, something else?
Hi Michael,
I have had a judgment on my credit report since February of 2008. It stems from a Providian credit card debt from 2002 that was sold to velocity investments who hired an attorney to collect. I was properly served and ignored it because I was unemployed at the time with almost no income so I figured it didn’t matter. Now I would like to buy a house and I am unable to do so because of it. My wife doesn’t work and has bad credit so that is not an option. The Judgment is for approximately $5500 and the original debt was about $2200.
I am currently judgment proof and probably will be for some time because I currently receive public assistance. They tried to levy my bank accounts and when that failed they tried to garnish my wages shortly thereafter which also failed. Every 6 months they send me a form and I certify that I am still receiving public assistance. They know that they may never collect anything at all from me unless I voluntarily give it up, which I am prepared to do but not at the full amount.
I currently rent and have no other assets that they can collect and probably never will since one of my vehicles is in my wife’s name and I lease the other one. I am not worried about the effect that it has on my credit score as that is not an issue any more. I just need it to go away to get a home loan.
I recently received my property tax refund for $1500 and I am willing to give it to them to settle this debt. What I need advice on is how I should proceed. For the initial contact I can either call them and lay out my terms and ask them to draft something that I will sign or I can send them a formal letter. Which one of these is best? If they counter I can probably do $2000 at the very most. I have been searching the net for a sample letter that I could use for this negotiation to save time and money but no luck yet. Do you have a sample letter that I could modify or know of where I might find one? I want to try to avoid any additional legal fees if at all possible.
I have read that some creditors will send you a 1099-c for the amount that was not paid and I want to avoid this if at all possible so I plan to add this as a condition. I have also read that some creditors will try to get the balance from you at a later time which I obviously don’t want so I also feel that I need this as a condition as well.
What kind of leverage do you think I have with them for a reduced amount? Do you think I need an attorney to do the negotiating for me and get the legal jargon correct? If you were in my shoes how would you proceed? If there is any way for me to do it myself I will. The only thing I am afraid of if I do it myself is that they might try to trick me some way with legal jargon that I don’t understand and have paid them the money and have it still remain on file with the court? Any advice or info would be greatly appreciated! Sorry this is so long! I live in the Duluth, MN area.
Thanks!
Brian
I think your concerns about the legal jargon are a bit overblown, but that is understandable given the collections process you were taken through. When you negotiate debts at this stage of collection, and with the goal that the court record is updated to show the judgment is satisfied (updating any credit reporting that the judgment is resolved), and pursue your home loan goals, there is not much trickery that can be found.
You can call and negotiate the lowest pay off possible. If 2k is not accepted, you can wait until they are willing to accept the offer, making a new effort to reach out and negotiate every couple of months, or continue to save up and increase your offer incrementally. Realistically… you may want to be ready with an amount equal to 50 or 60 percent.
Once you get the deal negotiated on the phone, then get them to send you the agreement in writing. And that document, while certainly containing some legalese, should be straight forward enough, and easy to understand. If there is any room in the agreement for them to later try to collect more from you, it would not be a settlement.I just do not see that kind of thing happening these days. If for any reason the agreement is not very clear on the point that you are satisfying the judgment, get some feedback from an experienced attorney in your area.
You are going to be hard pressed to get a creditor to agree to not follow the guidance the IRS gives on such things as forgiven debt. This is not a pre judgment negotiation, so leverage you are thinking you have, you don’t.
Thanks for the advice! I will wait till I have $2000 before I call them. If they don’t accept I will try again every few months like you suggested. Maybe I will get lucky and they will accept! If and when they do accept my offer, I will ask an attorney to look it over if everything is not absolutely clear to me.
I thought that I had some leverage because the only way they will ever see any money from me at all is if I voluntarily give it to them. They know this too, so I figured that they would be happy to get something, rather than nothing at all. They have been trying to collect this since 2004 when they bought the debt from Providian, and I have a gut feeling that they would be happy to be done with it. This is why I thought I had some leverage.
Could you please explain to me why you think that I don’t have any leverage here?
Thanks!
You have a goal to resolve the judgment and buy a home. They have a judgment that will prevent that.
Hi Michael,
I hope you’re doing well. A former manager sued me for $1000, a default judgment was recorded and I paid it. That was 2 years ago. I called my former manager and told him I was having a difficulties obtaining credit because of that judgment. He actually wants to help me and have it removed from my reports. However, when he went to court, all he could obtain was a certified copy of the judgment. What form(s) does he need to fill out to have it removed from my credit report? It’s the last derogatory mark on my credit reports. I hope to see a big jump in my FICO score.
Thanks!
Thanh – The judgment on your credit reports is due to the public record of the judgment in the court. He would have to petition the court to undo the judgment.
Recently sued by Capital One, I did not file an answer, but did call and agreed to payments. They sent me a Settlement Agreement and Agreed Judgment to execute. I have made 2 payments, but have not yet signed and returned the documents. In the agreement, it states Plaintiff shall file with the Court a “Release of the Agreed Judgment” upon completion of the payment terms. Is there any reason not to sign these documents? What exactly does the Release mean regarding my credit report?
It sounds like it may mean that as long as you make the agreed upon payments on time, all the time, you would not end up with a judgment on record. But if you do miss payments, or otherwise fail to honor the agreement, they file the record of judgment and the court will rubber stamp it, as you waive your rights to defend the suit.
You should run the situation by your own attorney in your state to be sure all of your questions are answered.
At this point, having made a couple payments pursuant to the agreement, I would sign and send if it were me.
I found this helpful but seek advice. My crefit score is 614 from one 650 from another and I belive the last was a 660. I have 3 credit cards that are in good standing payed off/low balances but not very old. On my credit report is a Judgment that was filed in 2008. It was paid in full to the lawyer the day I got notified of it but still shows not paid. Also an Att cellphone bill from 2008 is showing up now as a new debt listed as 2011. I want to have these taken care of and removed or updated but dont want my sxoee to drop aa I am in the process of buying a house. I have paid off several auto loans but thanks to my xhusband there is a repo that also shows up on my credit report nothing I can do about it now mortagae comapny said not to worry because it was repoed well afyer the divorce was final. What can I do about the other to items. I have paper work from 2008 showing the ATT bill was delinquent back then and the charge off paper fromt he courts. Any advice would be great need to get my score up.
Ask your loan officer/broker if they offer any rapid rescore as part of their loan service. If so, they can help you pull the documents showing the judgment is satisfied and get that to the credit reporting companies that show the judgment unpaid, so that this item on your credit can be fixed.
If they do not offer anything like rapid rescore than you need to dispute these items, or work with someone like Lexington Law to help you.
If you do this yourself, do it in writing, and use certified mail return receipt. Keep a copy of everything you send and the green card you get back for your records. You may need them later if the credit reports are not updated appropriately. Include a court clerk conforming copy of the case record showing the judgment is paid.
Who is reporting the ATT bill as a collection? Do you have an ATT account? Do you remember leaving a balance owed back then, or are you certain there was no balance owed? How much is showing as owed on your credit?
I have a judgement that i have been paying on and never signed the agreement that was sent from the law office. I am trying to buy a house. I have paid at least $600 on the judgment so far and believe i have about 1000 left to pay. Will have to pay the remaining balance? Or can i call and negotiate if i pay a pump sum?
It is not very common to negotiate a lower payoff on a judgment balance when you are current with payments on a prior agreement.
Are you working on a loan with a broker now? Have they mentioned anything about the judgment, or other debts on your credit reports?
Hi Michael, I stumbled on this site looking for assistance.
I was the defendant in a personal injury case. I rear-ended someone, they claimed I caused pain and suffering, they racked up a bunch of chiropractor bills and then sued. She won medical bills which was $3800.
My insurance company represented me and paid the judgment. This was in November of 2013. However, it is still showing as unpaid on my credit report. I spoke to both attorneys (plaintiffs’ and my own) and my attorney drafted a Release of Lien/Judgment which the other attorney signed. My attorney filed that with the district court clerks’ office.
What do I need to do to (hopefully) remove this from my credit report, or at the very least make sure it is reported as paid in full?
If the court record shows a satisfied judgment today, this will likely take care of itself. The company that mines data from your courts records only do so periodically. When they do, they sell the information to the credit reporting agencies (the court does not send or update information with the credit bureaus).
You can also dispute the credit report entry appearing now as inaccurate by providing copies of all updated court information. Be sure any dispute letter you send is sent certified mail return receipt requested. And keep a copy of everything you send to the credit bureaus in a safe place. If they do not correct your credit reports, you may need a copy of all correspondence later.
If I do initiate a dispute, will that have any adverse impact if, for example, the company that mines the data updates the status of the judgment before the dispute is reviewed/resolved?
Furthermore, do I have any legal recourse against either attorney in this situation for failing to file the release of lien in a timely fashion? It has been almost 8 months.
I cannot think of an adverse outcome from you sending a legitimate dispute about inaccurate judgment information on your credit reports, if the furnisher of that info updates the credit bureaus too. If something like that were to occur, post an update and let’s go from there.
There are general guidelines to follow in order to release a judgment lien, or that will cause the court to update it’s records to show that a judgment has been paid or satisfied. It sounds like that happened already.
What do the last two or three entries in the court record reflect?
Hello Michael!
Great info that is giving me a good idea on how this all works, because believe you-me, the two places I’m dealing with aren’t willing to help with understanding.
My situation: I’m trying to get a home loan and I’m dealing with a company credit reporting me with a past due/charge off and an attorney collecting their debt after a civil judgement. Both are reflected on my credit report, and I’m not sure how to deal with it. The charge off is $7,675 and the judgement was for $12,461. The attorney is willing to accept a lump sum offer, and credit company says our account is inactive and we can’t deal with them. I am a few points shy of qualifying for a home loan and I’m unsure if this is the route to take to get those few points up, or to focus on another $115 charge with AT&T that I can very easily get off my credit. My credit has been rising, but the Home Loan lady says I should handle the big issue before applying again. If I were to go about handling a seemingly double report for such large amounts, should I contact a lawyer? Or attempt to save money to give them an large offer?
Or any other advice you have for this situation would be appreciated….
Thanks!
Darren – Who is the original lender reporting the charge off?
You can attempt to save money on fees by negotiating and settling the judgment with the attorney yourself. That generally will work out in your favor. I would not suggest this DIY method as a means to offer more in your negotiations, but it may come to that.
I am not sure that the double reporting is an error. You may be the victim of credit report double jeopardy, and it is allowed. But this will get resolved after the record is updated. If it isnt, you can affect change by disputing with the credit reporting agencies.
How much money are you able to pull together to settle the judgment?
When was the judgment entered in the court?
Does your credit report show you are paying other debts on time?
Thanks for the reply Michael!
The original lender is CNAC with JD Byrider and the judgement ($12,461) was 2 years ago. We’ve been paying $100/mo on it since then. As far as I know, or CR says everything is fine other than those three things (The double report and then AT&T).
We are thinking settling may be our best bet but even if we throw out an offer that is close to the original debt ($7657) we wouldn’t be able to pull together that kind of money for a while. Now we could easily postpone looking for a house to save (we were gonna do that anyways). But if I go to settle with the attorney, what would be a good starting point for negotiations?
Given what you shared so far I would target between 50 and 80 percent as my settlement goals.
What is the judgment interest rate set by the court that you are paying?
There was not a rate set to my knowledge. We talked to the attorney, agreed to pay $100 month and that’s what we agreed to in front of the judge. The attorney is sending payments to CNAC from what I gathered. And the attorney made the comment that CNAC may still be reporting my past due because the payments aren’t enough the cover the monthly amount. Does that sound accurate since my account is inactive? Shouldn’t I only be dealing with collections?
Thanks again Michael!
It is accurate. I am concerned that the 100 a month you spend is not really putting a dent in anything depending on the interest rate set by the court. What state are you in?
Illinois
They may be charging as much as 9 percent interest on judgment debt in Illinois. Just another reason to knock this down as soon as you can.
I stayed in a apartment in 06! lost my job and had no way to pay my bills. I got evicted. its now 2014 and I cant rent anywhere. I tried contacting the apartment complex, with no results they have been sold 3 times since I moved out. I went into the apartments leasing office and spoke with one of the leasing agents whom was very rude and told me he would not give me any information about my account balance. which I was prepared to put something on it because I cant find any place to stay. what should I do?
Look up your name in the local court records and see if there was a lawsuit filed against you and a judgment entered.
Also look at your credit reports and see what negative account information is on there.
Post an update with what you learn and lets go from there.
I have looked up my credit and the complex is on there as well as a judgment. I have no idea where to go from here because the guy that works at the complex will not give me any information on paying off my balance
The apartment complex employee may not have any information to give you.
Get a copy of the judgment from the court, or see if you can pull it up on line, and call the law firm that sued you. If they still have the ability to deal with you, they can make arrangements for payment and updating the court record so that the judgment can be updated to show paid or satisfied.
If the law firm cannot work with you, find out who may own the debt today if the original judgment creditor sold it off, or if it was absorbed as an asset in some other acquisition.
If you do not get anywhere in that effort,you may want to start considering what your options are to pay the full amount of the judgment to the court, and can talk to the court clerk about that option.
Hi Mike,
I have a judgment I paid off. I did it on the day of the court date in full in front of the plantiff but it was still filed. The clerk even has told me the judge notated it paid in full. But the court refuses to give me a letter stating it’s removed and Equifax won’t delete it without one. What do I do?? Please help
One Lost Lindsay
I am skeptical of whether the court will remove the judgment. They would not it as satisfied/paid in the court record, and that is how Equifax should be showing it. This situation may not get better than that.
Was there something the court said about dismissing the case?
Do you have some credit and financing goals a paid judgment on your credit is holding you back from accomplishing?
Hi Mike in 2007 I leased a car the loan was from chrysler financial services america. I became ill as i suffer from mental illness and was not able to continue paying the car by 2009. As the years passed I have not payed the debt and it has become a judgement on my credit report which was filed in 2011. I have been doing some reading and was unaware of how bad this could be(may last longer than 7 years possibly 10-20). I have also read that making any payment at all could actually make it worse as they may prolong the debt situation. Will it go away in 7 years from the filing date or do you think it may not? What should i do the balance is rather large now like over $8000 and i don’t really want to pay it the court was westchester supreme court if that helps my email address is [edit: email address removed] in case i dont come back to this site
I live in new york by the way
Paid collections in New York may be removed in as little as 5 years. Paid judgment debts will generally result in them being dropped from the credit report after 7 years. But no, the judgment is not going to go away. Judgments in New York can be good for 20 years. That means the judgment creditor can pursue extra ordinary collections for all of that time, and the judgment is likely growing from an interest rate set by the court (though not in excess of the 9% limit on judgment debt in New York).
Judgment debts can be settled for less, which will lead to the judgment record being updated to show paid or satisfied. Are you simply uncollectable and certain you will remain that way, or can you come up with a strategy to settle this for less than the current amount owed?
well I don’t really want to settle i can’t afford to it is a lot of money I owe unless they would settle for a really low amount I don’t see myself being able to pay the debt so I guess it’s just going to sit there? Any other options
You might be able to get them to settle for half-ish.
No, not many options for dealing with judgments. Not unless there was something wrong, or some defect, with how the collections all went down. And even then you would have some costs working with your own attorney.
i know they say it usually resolves itself within 7 years of the filing date but what is you opinion on how long it will stay if it doesnt get paid do you think it really would hang around for 10-20 years?
It is a trivial matter to renew a judgment, and costs them little, so yes, I think the odds are high that you will have to be aware of extra ordinary collection efforts for the full 20 years if the judgment is not resolved. But that would not be the case with the credit reporting. You may see that fall off automatically after 7 years from the entry date.
ok last reply sorry for so many replies but say i went to get a car after the 7 years when the judgement should clear from the credit like you said, would it still be an issue would they see it? or can they always see it when trying to get an auto loan or etc house…
Public records are… public. And there are big data brokers that track and trade public records. Now understand that different lenders use specialized reporting. Home loan lenders will often use a tri-merge report for example. Part of that may include public record data searches. Here is where a prior judgment may prevent loan approval.
In other words, I cannot say for certain. But if an issue does arise after the judgment is no longer showing on your credit reports, it is probably likelier to prevent home loan approval than auto loan approval.
Thanks for your help
Hey Mike I was afraid to open a checking account because of the judgement on my file I didn’t want them to take the money so i haven’t had a checking account in a long time is this true should i not have one and if so how long should I stay without it. Or would I be able to have one anyway
Around 1700 dollars in your personal bank account is exempt from judgment creditors in New York, and up to 1k more possibly, if you are not taking a homestead exemption.
You can go your whole life without a checking account. But if you do get one now, do not keep much in the account until this all blows over, or you resolve the debt.
and if i am mentally ill or disabled can i fight the judgement
I am not a consumer law attorney, and not familiar enough with how your disability would be viewed by the courts. I can refer you to one to speak with about your options to fight the judgment.
Given what you have shared, I do not think your disability would open up additional options to fight the judgment having happened and existing. You may have additional collection exemptions that could be established at a court hearing, but here again, I would check with an experienced collection defense attorney in New York.
thanks for all your help mike im sorry for the numerous replies i’ve been ill and am trying to back on track but appreciate all of your responses
Mike
About two years ago I got an HSBC credit card through best buy to purchase a computer my (at the time) credit card could not hold. Soon after the purchase I was going to be overseas for some time so called HSBC to set up automatic payment. The guy I talked to on the phone never ended up doing it, by the time I got back to the 1st world the account had been sold off to collections. I have been advised not to pay the debt but I feel both an obligation to pay it back and want to get the ONLY black mark on my credit report removed. I am sitting at 582 at Experian and 600 with Transunion. I like many others here am looking to buy a house soon and wanted to get my score up to get approved for a home loan. I contacted HSBC today regarding the debt asking if I could just pay them directly the remainder of the debt in exchange for removing the blemish from my report but the girl told me since the account had been sold they had no rights to it. After further research I discovered that in some instances it is possible to have the original lending company resend the debt to allow the borrower to pay them back directly. My first question is, is this a good option or not? If not then my only other option is to pay the third part company the remainder of the debt. I have read that it is possible to negotiate a deal with the company to pay in full and have them remove all marks from my report, is this true? If so, correct me if I’m wrong, but that will remove the account having not been paid, but will still show up from HSBC that the debt was sent to collections which will in turn still continue to hurt me? Without this blemish my score shoots up to nearly 800!
Your advice is much appreciated.
Regards
Michael
Who is the current holder of your old HSBC debt?
Good morning I have a concern about judgements that I have on my credit from an apartment complex. I was looking over my credit report and noticed that I have several judgements that are 30 days past due according to the filing date and the date of the actual payment but according to my paper work the filing dates are wrong and so are the date of payments. I do agree that I paid late but what concerns me is for ex. if i filed on June 19th and received my court date which for my county is the first Tuesday of July is the first and I attend court make an agreement to pay you on the 3rd and i do just that but you failed to notify the court of my payment until I find out about it almost 6months later what can i do to get this corrected as far on my credit report can i get this removed if i have supporting documentation or is it because i went to court it stays as a paid judgement.
Not trying to make any major purchases but if i decided to I do not want this to hinder me.
The fact that the judgment is showing as paid is the important part. Judgments on your credit report will impact you, but the more time goes by, the less the impact will be, and the judgment will drop off your credit reports generally after 7 years.
Depending on the loan product you are looking for later, the judgments may have little to no impact after a couple years.
Because this collection went to court is why it is showing on your credit reports.
Thank you very much, I did the best possible thing to do which was pay in full.
Hi Michael,
I have a judgement from a credit card that was sold to an attorney. I am currently making monthly payments to the current holder of the account (a credit collection company). My concern is on my credit report it is listed twice, one by the first attorney and then by the second attorney (2008 and 2012). Can I get get one of these removed since it is the same account?
Who is the second attorney?
Who is the named plaintiff in the lawsuit?
Michael,
hopefully that will be the case. i’m really stressed about it. IF it turns out they won’t do that, what do you suggest? i don’t want to just pay anyone, especially if they can’t sign the release but i don’t want to wait until the judgment expires either.
Talk to an experienced consumer law attorney about paying the total amount due to the court and filing updated docs for the court record to reflect satisfaction.
I am in the process of trying to get a mortgage but am having difficulty due to an outstanding judgment. the judgment was awarded to Mann Bracken on a Discover card debt. Mann Bracken was a very disreputable debt collection/law firm that has since closed it’s doors. Discover has no knowledge of the judgment and as previously stated, Mann Bracken went out of business less than a year after receiving the judgment. There is no receiver on file in the state f Texas. And if the debt was sold to yet another party, they have never made any collection attempts. So, how do you pay a judgment when there is no one to pay it to? logically, only the owner of the debt can release me from said debt once it’s paid. And they are no longer in business.
p.s. the judgment was granted 7/24/08 and the abstract was granted 9/5/8.
Michele – Who is the named plaintiff in the lawsuit for the Discover debt?
Michael,
The named plaintiff is Discover Bank. I might also add that i sold my home approximately 8 months ago. The attorney hired by the title company to get the homestead affidavits done, sent the affidavits certified mail to Discover Bank and there was no repsonse. So, we wound up filing it the “Homestead Affidavit as Release of Judgment Lien” along with all of the documentation showing it was sent certified with the court clerk to satisfy the title company.
another attorney recommend i get the title company to open an escrow amount for the amount of the judgment and maybe that way they would write the title policy. Have you heard of this being done?
Yes, I have heard of the escrow being set up. Pretty common.