Can I get a judgment 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
Short answer
Not by asking whoever is collecting. Debt collectors, debt buyers and collection attorneys cannot make your original creditor change what it reports, and nobody collecting the debt controls the court record. Removing a judgment means getting it vacated. For most people the practical move is to pay or settle it and make sure a satisfaction of judgment gets filed.
Key points on this page
- There is a hierarchy to credit reporting. Collectors, debt buyers and collection attorneys cannot change what the bank reports, and original creditors have no real influence over the court record once judgment is entered.
- The judgment is a matter of public record and the court maintains it. Getting it vacated takes an attorney who knows that work, or a lot of your own time and energy.
- Judgment debt carries a 7 year shelf life, and that clock starts on the date the judgment was entered, not on your first missed payment.
- The earlier stages, from first late payment through charge off and collection reporting, carry about a 7.5 year shelf life from the date you missed your first payment.
- Paying or settling the judgment results in a satisfaction of judgment. Put the filing of that satisfaction in the agreement in clear terms, because there is no shortage of feet dragging on updating the court.
- Once the satisfaction is on the court record you can use it to update your credit report yourself, which matters when you are trying to get a home loan approved or refinance. On a small balance, paying it also heads off garnishment.
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 this approach.
Getting a Court Judgment 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 a judgment removed from credit reports.
Credit Reporting, Collectors, Debt Buyers, or Attorneys Collecting Debt
There 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 a 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?
Need some personalized help?
If you would like confidential help you can…
- ask a quick question here
- request a general debt consultation here
- get a settlement estimate here
- use the CRN Platform to settle your debts or find dedicated Debt Coach here
Not sure where to start? Click on the big blue “Get Debt Help” button.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Ok I have a judgment on my husband and my credit report. We fought the original creditor for the amount to be lowered based off of charges from apartment damages we didn’t agree with. We got no resolution and was forced to pay original balance. We said no they sent us to collections. We sent letter after letter to the collection Amgen y but they also refused to looser it. We said we want to take this matter to court. We went to court and the judge lowered our bill from 3500.00 to 2000.00 and said we did not have to pay their lawyer fees they were asking for. I paid what I was told too right away in full. Now I have this judgment of my credit report that is giving me bad credit. I want this removed as I had to go to court in order to get the bill lowered. How do I do this?
Thanks
The judgment will not be removed from your credit reports unless it is removed from the court records. And from what you shared, that is not going to happen.
Paid judgments lose their potency over time, and will fall off of your credit reports typically after 7 years.
What are your credit goals in the next 24 months?
I am finding this judgment is ruining me trying to rebuild. I have been working so hard getting my credit score up. I am currently 579. This is a big improvement. I follow guides (get credit cards, pay off debt, on time payments). My goal is to buy a home for my family. I think this judgment is preventing my credit score to raise.
It can take time for a judgment to lose some of its potency to drag down your credit scores. How long ago did you pay the judgment? It is showing as a satisfied judgment in the court record, and on your credit reports, right?
I have not noticed it saying it has been paid on my credit report actually which is weird because I paid right there at the court house. I am very disappointed about the whole situation. If I where to challenge the judgment on there how would I go about this. I don’t challenge judges decision just I want to get it removed. Would this involve appearing in court?
Does the court record show it as paid?
I do not think challenging the judgment is going to be of any use to you, just more expense and time. But if you were to pursue it, you would file with the court, and it would likely involve appearing.
HI Michael,
SEEMS LIKE I MADE A MISTAKE BY APPLYING FOR CARD THROUGH CAP AGAIN AFTER OPENING A ACCOUNT WITH CREDIT KARMA LAST NIGHT THERE WAS NOTHING FROM CAP ONE NO JUDGEMENTS AT LEAST , NOW AS OF TODAY MY TRANS UNION REPORT READS THREE THINGS,
Credit Score Center
My Spending
$0
$1,255
Collections
TransUnion
629
Credit Rating: Poor
Updated Jun 14, 2014
You have no recent credit report activity.
Past Activity
Jun 14, 2014 You have 1 public record posted on your credit report.
Public Records Activity
Your credit report contains the following public records:
Public Record:
1. Court Judgment Date: Aug 11, 2010
Jun 14, 2014 You have 1 account that has been delinquent on payments.
Accounts Activity
Your current credit report indicates that you have been delinquent on payments for 0 of your open accounts and 1 of your closed accounts. These delinquencies may have occurred at any point over the last 4 years.
Account: Type: Status: Total Late Payments: Payment Status:
1. CAP ONE Credit Card Closed 1 0%
Jun 14, 2014 You currently have 1 open account in collections.
Accounts Activity
The following account is listed as in collections on your credit report:
Account: Balance: Payment Status:
1. PORTFOLIO RC $1,255 In Collections
Jun 14, 2014 The length of your credit history is 0 Years.
Accounts Activity
The length of your credit history is determined by the following open accounts:
Open Accounts: Average Age: Oldest Account: Your Grade:
1. 0 Yrs 4 Yrs 11 Mos
You have no open credit cards. You have no installment loans. Related Article: What is your credit history?
Jun 14, 2014 You have 1 credit inquiry on your credit report.
Inquiries Activity
You have the following credit inquiries listed on your credit report:
Lender: Type: Date:
1. CAP ONE Bank Jun 14, 2014
I WANT TO FIX ALL THAT . GUIDE ME THROUGH PLZ……
AT LEAST THERE NO TD BANK THERE ON THE REPORT
I REALLY APPRECIATE IT .
WOULD THEY STILL SEND ME THE CARD THEY CHARGED ME BUT AFTER TODAY’S INQUIRY I AM NOT SURE IF THEY WILL .
Stockton,ca
I sent you an email with contact details to an attorney with fair credit reporting and debt collection experience. Call for a consult and talk about your options.
I misunderstood. I read your prior comments to say that Capital One already issued you the new credit card, not that you had just recently applied for one, and did not know the outcome.
It is typically not a good idea to request new credit products from a lender you have unresolved accounts with. It is not impossible to get approved if you do apply, but rebuilding credit is best done using resources that have the higher likelihood of succeeding. I like the credit rebuilding tools available through credit.com.
As far as those negatives go, it appears you need to focus first on resolving the judgment by making an arrangement to pay in full, or for whatever savings you can negotiate. Then focus on adding positive history (new accounts), which you lack.
I graduated from college in May 2000. I have an old student loan I was not great about paying timely until about 6 years a ago & then I started paying monthly. I was paying what I believed the monthly fee to be since I hadn’t received any billing info in years. Apparently, the student loan company (Hinson Hazlewood) sued me about 8 years ago, but they didn’t serve me with the papers until 3 years ago. They said they couldn’t find me, but I had been paying them for years, using my current address. I contacted the attorney listed on the paperwork who told me he could keep the issue from going to court and could keep my dad’s credit clear (he was the consigner) if I would enter into an agreement stating I owed the debt. He said it would show as a “judgment” on my credit reports but said it would NOT affect my credit but could be considered a lien should I ever try to sell my home. Well, I am told by creditors that it is absolutely affecting my credit. And I can’t even do a streamline refi on my home because of it. I continue to pay the correct amount timely every month, but from what I read, this will always & forever haunt me. Furthermore, the attorney ended up including my dad any way & then said he was sorry but said it would not show up on my dad’s credit as long as I was never late on a payment. I wish I had not felt so pressured years ago & wish I would have tried to fight the judgment. Is there anything I can do? I owe approximately $20,000 more which will take nearly 10 years to pay off. Any suggestions are appreciated.
I would talk about your options with a consumer law attorney, and one with debt defense experience. Post the name of a nearby by larger city and I will email you contact details for any I know of in that area. There may be no recommended course of action, but the initial consult will likely be no cost, and will help you get your bearings regardless.
Hey Shelli,
I completely understand. HH loans file judgement on me two years ago and when I received the court documents in the mail, I was completely confused. I did call the attorney on the claim and she directed me to someone who was suppose to be HHloans. I was stupid enough to sign in the judgement in thinking it wasn’t going on my credit nor was it a default. Now I’m sitting here trying to figure out how to get put of this mess. I just talked to a settlement attorney (free review) and they told me that there was nothing that they could do. I think it’s quite “snakey” how private lenders do individuals.
I made an account ladt night with credit carma it only shoed $1225 BY portfolio now orignal creditor is capital one and the date is 7/9\2009 .only trans union records on this site.does not show any thing else.what that means there was never a judgment? Noting from td bank. And how about cap one card that they approved how should i go about that sine i already paid $99 kind a secure card i guess.ty for quick reply .realy appriciate this
I would keep the Capital One card you just opened and use it as a credit rebuilding tool (use sparingly, and pay each month in full).
You can pull your credit reports for free from each of the majors at http://www.annualcreditreport.com.
Just because a credit report does not show the judgment does not mean it isn’t there. Pull the others and verify, but also look to the court record where you know this all took place and verify it there for yourself.
Make sure TD bank is not reporting elsewhere.
Post an update, and lets go from there.
Hi Michael,
I was renting an apartment for a few years and due to a reduction in income and basically having more bills than I could keep up with and other circumstances, I fell behind on rent. I communicated my situation with the landlord but he eventually filed a notice for eviction for unpaid rent. I moved out timely and went to court because I disputed the amount he recorded that I had not paid. I have proof that he missed counting some payments also I never got my security deposit back . I ended up inadvertently missing the court date and he won a defaulted judgment against me for $6500. My situation now is that my finances have improved 100% my credit score is 590 and I am working on deleting some items to continue to boost the number. I want to purchase a home by the end of the summer and I also want to resolve this judgment so that it is no longer on my credit report. What is the chances that they would accept an offer to pay in full lump sum for a slightly less amount and request that they file a order to vacate? I should mention also that I work for an attorneys office here in Philadelphia PA actually and I can get this proposal done through my attorneys so it appears to have more “teeth” by coming from an attorney
It is possible to settle the judgment debt. Getting them to vacate in order to be paid is not a realistic expectation though. Was it a large property management company you rented from, or a small property owner?
Even if you are only able to get the judgment entry in the court record updated as satisfied, and then get the credit reports updated with same, you can still qualify for home loans (if all other criteria looks good).
What are some of the other credit report negatives you have?
Hi,
PLEASE BEAR WITH ME I KNOW ITS A LONG QUESTION. THIS WAS ALL AT LEAST FIVE YEARS BACK MAY BE 6 YEARS NOW AND I HAVE NO RECORD OR PAPERS OFF ANY THING .
i had capital one credit card for five hundred which I took out and never paid they called me many times . then they sent it to collections they started same thing i never answered . then it went to court in new jersey got summoned was not at the address at the time but they kept coming. never replied got judgement against me . same with TD bank it was about $100 dollars with bank . question is things are different with me now finally i recently applied for capital one card again they approved me and said to deposit $49 dollars i deposited $99 . why did they approved only the address is different ss # is same what now ? how long does judgement stays on record on credit and in new jersey? what about
TD BANK DON’T KNOW WHAT THEY DID. WAT IS THE BEST ADVISE FOR ME HOW CAN I REBUILD MY CREDIT AND DO I HAVE TO PAY ALL THOSE DEBT . I HAVE BEEN IN DIFFERENT STATE LAST FOUR YEARS NOW PLEASE ADVISE ME TO THE BEST OF YOUR KNOWLEDGE.
Capital One issuing another credit card may be due to error, or data bases not connecting about the past account, other.
The judgment they have is good for 20 years. It may not be on your credit report for that long, or continue to slow your credit score improvement, but it can prevent you from credit approval on home loans and the like. The judgment grows with interest set by the court. Taking care of this as soon as you are able would be good, and not just from a credit reporting perspective.
On the TD Bank account that went to collection:
Does TD banks still show that there is a balance owed to them on your credit reports, or is there a zero there? If a zero, they sold it, if still owed to them, the balance should show an amount.
Settling a really old debt like this (that is not a judgment); where you cannot be sued due to the SOL in your state passing; and where your credit report and score are the number one concern, may not be a good idea. Settling means updating really old ans stale account details. While settling is a good thing over all, the fresh updates to a collection account can drop your credit temporarily (lasts for several months). Unless the TD collection on your reports are holding up other credit approval, it may not be something to address credit wise.
Hello Michael,
Back in the day when i was 20, I purchased a computer through Gateway. Of course, it was financed and my sister decided she would buy the computer from me. Of course, she did not keep her end of the bargain and the computer was not paid. As I got older, the bill went delinquent and I was under the impression that this was written off. Recently, I have been looking through my credit report, at the age of 36- looking to improve my rating and overall score. I realized that Asset Acceptance has a judgement against me around the sum of $3500 for the computer or the purchase of the debt. Court papers were filed 2009. What should i do? I want to call them and declare this debt as passing the statue of limitation, but I don’t want to open a can of worms! Will this come off my credit in 2016, satisfying the seven years? I don’t want to act without some kind of consolation and knowing these agencies, they are hungry for payment, PLEASE HELP!
The judgement may come off of the credit report after 7 years from the date of entry in the court. But the debt is still out there, and probably growing with judgment interest. You will still be at risk of extra ordinary collection efforts like liens on property, bank account levy, or wage garnishment (depends on the state you live in).
You cannot call Asset Acceptance and declare a judgment already final in the court record as passed the SOL. You would formally have to challenge all of that in the court. And after 5 years, I am not sure how realistic that would be.
What financial goals do you have in the next 2 years and beyond?
Hi Mike,
I recently pulled my free annual credit report and discovered a judgment filed against me by some Apartments that I have never lived at. This is in a different state than where I live and someone has used my identity. I have filed a dispute with the credit bureau’s regarding this. I have been working so hard to rebuild my credit and now this has happened. Will the credit bureau’s remove this with the proof that I sent them showing where I have been living and working. I am looking at hiring an attorney to try and have the apartments recall this. Not sure where to start. I also filed a complaint with the FTC. Any advice? Thanks
Did you live in the state the judgment was filed at any time?
credit r
Credit reporting is not perfect. Far from it. There could be a mixed file issue, or something other than identity theft at play. That said, if it is an issue of identity theft, I would want to file a formal police report, and have that to share with credit reporting agencies too.
Hi Mike,
I had a credit card judgement levied against me in 2008/finalized in 2009 during a prolonged period of unemployment. I was supposed to have insurance on the card against unemployment but when I tried to contact them about it, they claimed they couldn’t find any evidence that insurance was on the card. Basically, what I think happened was they had insurance on the card and when I sold a house, I paid the card off. When I moved out of the house, as a precaution against fraud, I closed all my accounts and had the cards re-issued. I was afraid someone might find something in my trash and steal my identity. So my move to protect myself may have resulted in them removing the credit protection from the card. In any case, when I needed it, I discovered it was no longer there.
The creditor got a judgement on me that was finalized before I became aware of it. In a few months, I may be coming into a little money, but I’m not sure how much– so I’d like to try and negotiate with them. Before, I couldn’t, because I just didn’t have any cash to pay the debt. Could you recommend a lawyer in California that could help me settle the debt with the creditor’s lawyer, and get them to file a satisfaction of judgement with the court? Should I try to counter-sue them or file a complaint with some government agency (the court? the FTC?) and argue that I did not authorize the removal of the credit protection insurance? Would something like that give me any leverage to get a lower settlement amount to satisfy the judgement? Your advice would be greatly appreciated. I just want to move on with my life, but am only now getting some money to deal with this.
Suing them over the cessation of credit protection is not likely to lead to anything productive. How much is the judgment for?
I will send you an email with contact info to an excellent debt defense attorney in California. Talk to him about what he can do to help settle the judgment and get the court record updated.
Thanks, Mike. That’s what I figured. Thank you! It was originally for about 5800, but is now between 9-10k with interest I just need to settle it now, and hoping for the best outcome possible. I also don’t trust settling it on my own because I am afraid they will not file the court satisfaction paperwork unless an attorney handles it.
Hi Michael,
Great news! The attorney to whom you referred me was able to get a settlement for half of the amount of the original judgment, due to a couple of clerical issues with the original case. I paid about 4700 instead of 9400. Thank you again for all your help with this!! You have really helped me out. I am so happy not to have to worry about this any more.
I do have one additional question. The lawyer said the Collecting law firm will probably send me a 1099c. My tax preparer said it will probably be for the difference between the initial judgment and the settlement amount, but the law firm may try to send me a 1099c for the difference between the judgment+interest (9400), and what I settled for (4700). My tax preparer, who has done several 1099cs, said she would need to do some more research, but that the taxable event was in 2009, so it ought to be the amount that was from when the original judgment was finalized. She said if they try to send it for a later year, then I could file a form with the IRS to dispute the year, because it’s pretty clear when the event occurred. The lawyer said he was not qualified to speak on tax issues, so he didn’t know.
Do you know how the 1099c would probably be calculated? Is she correct about the taxable event? If she is, I’d get a 1099c for about 800. If she’s not, it will be for about 4700. I wasn’t working that year, I was a student living off student loans. It probably won’t affect me much in any case, because she said I could file a claim for insolvency since I owed more than I was bringing in during that tax year. I didn’t even make enough money to pay taxes that year. But it would be good to know what to expect.
Thanks,
Rachel
p.s. Her reasoning for the amount was that the interest accrued after the event occurred, but if I paid 4700 and the original event was about 5800, then I’d only owe the difference between the initial event and the settlement amount, which is about 900-ish. She said the 1099c was sent because the IRS considers the unpaid debt as income from the initial event. The subsequent interest she was unsure of, but felt that it would be a different event year, if it is taxed at all, and might be carried over a number of years.
I believe there are tax court rulings and/or policy decisions pending regarding the tax treatment on forgiven debt, and how phantom money (interest after default) is treated.
Those decisions could be a while….
Congratulations with resolving the judgment!
I cannot speak to the tax question as a qualified professional, and would encourage you to speak to one. My impression of where you are at is that the year in which the debt was forgiven will be the year you have to consider the tax, and whether you are solvent. I cover this in more details in this report: https://consumerrecoverynetwork.com/debt-forgiveness-taxes-settled-credit-card/
Hi Michael,
Thanks. That is not what my Enrolled Agent said, but as you said, this is a very murky part of the tax law and it has changed a lot. She said the IRS has said it must be the year of the taxable event. Otherwise, people could get the 1099c years later and the IRS says it must be timely. She said she had heard the IRS was going to rule against CAs sending 1099cs years later for a current tax year, but that is what she heard at her workplace. I could have her call the IRS about it when I get it. If they sent it for this year, I would dispute it, but I think I might have to get a tax lawyer at that point.
We’ll see how the whole thing pans out.
In any case, thank you so much for putting me with a lawyer who could get a settlement. That is huge for me!
Rachel
If you do get some solid answers to your questions come tax time (or before), please post about that in the comments of that link to the report I provided above. That would be great!
Thanks, Michael. I will do that. She has a line she can call to speak to the IRS about it, and also some tax experts who are on call who specialize in different areas. I have asked her to let me know as soon as she gets a solid answer. I hope consumers will get some clarity on this soon. For the past couple of years, I’ve seen a lot of posts on the 1099c from people who got one many years after a taxable event. I really hope the IRS will clarify the timeframe in a more precise way and exactly what to expect in terms of the amount on the 1099c.
Law School soon to be 1L student in need of advice.
I am a 28 year female from New Jersey. I have been accepted to Law School and was thankfully awarded a 20k dean scholarship. However, I still owe 52K in tuition including housing. My credit history is not well. I have 6 accounts in good standing, including a car loan company.
Bad Debt
1) I have 2 medical bills I never knew about, but they are small in the amount of 1,000, which is in collections
2) I have one civil judgement that was filed in 2012 in the amount of 5300, which originated from chase but was taken over by another company. This also shows in my bad debt as well in collections, thus hitting me twice.
3) I have a 10,500$ outstanding debt from 2009, which started when I was 19 years old. They had given me a 9000$ limit and I have no idea how, but regardless, I was unable to pay any of it, thus, it is now in collections.
My mother is going to try to get a loan or mortgage of some sort on our home in the amount of 20k, hoping that if I pay off these ‘bad’ credit accounts and civil judgment, I will be able to obtain a student loan from sallie mae or similar company.
My question is this, if I pay these accounts off, in total an amount of approximately 18K, which I am hoping I could knock down to around 9 or 10k, would my credit score improve enough in order for me to acquire a private student loan without a co-signer. I am being given the max in unsubsidized federal money – 20,500. But I am still left with 30k in tuition/housing, which is the amount I would need in a loan.
I do not have a co-signer, my mothers credit is not good enough to enable me to obtain a private loan. However, if my credit improved, would her mediocre credit be that much of an issue. She is in the high 500’s and I am, I believe in the 400’s.
Like I said, I do have 6 accounts that are open and in good standing and current, including a financed automobile.
I can not get a grant for post-Bachelors degree and I am getting the max in unsubsidized, and the graduate plus loan requires a good credit standing, or a parent to have good standing, but I have neither.
I am at your mercy and need advice on how to proceed. Two of my bad debts are going to expire by 2016, but I do not have two years. I start in August. Please please help me and let me know what I can do to optimize my potential for obtaining a loan, either private, or otherwise.
Thank you.
Sometimes there just are no feasible financing options. Your situation may be one of them. As you pointed out, time is your friend, but not when your goals are more immediate.
You could certainly settle the debts you reference in your post, and perhaps for better savings than what you are preparing for. But that will not necessarily mean you will be approved for the student loans you need.
Are you working?
Fallon – any advice from someone with experience. Do not get any loans through Sallie Mae for student loans. If for whatever reason you are unable to pay them… They will sue you faster than you can blink. I have also commented on this article about trying to obtain a mortgage loan but Sallie Mae is really causinproblems. Feel free to read my section if you want to know more of my experience with them!
Hi can I seek advice I have a credit account in kay jewelers and I think we missed to pay for about 5 mos I think, actually its a joint account. Kay jeweler already send it to law firm and law firm send us a letter notice of intent litigation, are we gonna be sued with that? What are ways we gonna do because we still want to pay the balance and we tried to contact kay jewelers but we remained hold for about a hour and half in phone call so we just left a message, but there’s no reply with them yet, we just want to know if there is anyway we cand send the payment.
rhem – With Kay Jeweler sending your account to an attorney for collection, you will typically have to call the attorney to work out the payment arrangement. Be very careful to get everything in writing that you agree to. Just because you are paying the attorney does not mean they will not sue to secure payments from you.
We sent a settlement letter to them but we didnt received any reply with that we just received a notice of intent litigation
With that notice of intent litigation is that means they already file a case to us?
It may not mean they have already filed, but it does certainly sound like they will.
Sending letters offering to settle is often counter productive. Is there a reason you are unable to call?
Thanks Michael. We already talk to them and agreed on us how we can settle the payment. Thanks a lot for you time and help. Appreciated.
I have a credit card judgement in my name since 2008 and i was told by the credit bureau that it will go off my credit report in 2015. I tried getting a mortgage loan this year and i was told by the loan officer i needed to pay the judgement. He said they will still be able to see it on my record even though its off my credit report when applying for a home loan. Is this true?
Public records, which include the court entering a judgment, do not go away once the credit reporting ends.
I had a motorcycle repo in 07/07 from Harley Davdison that shows as a charge off on my credit for 6400 it will be 7 years in a couple months does that fall off or can they go back and file a judgement against me I live in NC my wife and I are trying to buy a house Thanks
The statute of limitations to sue you in North Carolina in order to collect on a debt like this is long gone. I do not think you are at any risk of them trying to get a judgement now.
“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.”
I am in this situation. I have a student loan Judgement against me that is reporting on my credit from Sallie Mae, and they are not reporting that I have paid ANYTHING towards it. They aren’t updating balances and they are not reporting that I pay them monthly. I had a really bad credit score (in the 400s) at one point and I worked my ass off to correct my horrible decisions when i was younger and now it’s up to around 620. I am trying to finance to get a mortgage loan and the lender wants to see my credit score up to at least 640. The ONLY two things I have outstanding are this Judgement for student loans, and a medical bill that is in collections that will be paid off in a couple of months. That’s IT. And I dont know what to do at this point.
Sallie Mae was of no help to me whatsoever. They told me to get a private loan to pay off the Judgement so it wouldn’t report anymore. WHAT? I dont care that it’s reporting, but it’s not HELPING my credit if they aren’t reporting that I’m paying them.
WHAT DO I DO?!
Brittany – When paying a judgment off with monthly installments, it is not updated to the court record. And it is the court record that is reflected on your credit reports. Your credit report will probably next update once the satisfaction of judgment is filed, which is not going to be until you pay it off in total, or as agreed if settled for less.
You will probably get a bump a couple months after the medical debt shows up on your credit reports as paid.
What are you doing to help your credit score besides dealing with the old debts?
The only thing I’m doing is making sure that all of my bills are paid before the due dates.
I have two store credit cards, Kohls (100$ credit line) and Victoria’s Secret (with a 500$ credit line) which both are paid off (no other credit cards… No MasterCard or visa). I have a car payment and normal household bills (cable, car insurance, gas, electric, rent, cell phone)… But other than that, I don’t have much else. I’m not sure how to better my credit score other than to pay off this medical bill that has 300$ left and get rid of this judgement. Crappy part is that I can’t just give them 11,000$ and call it a day so the judgement goes away.
Any other suggestions on how to raise that credit score with things that I can control?
Not much to suggest. You have a couple of revolving credit cards with low to no balance, an installment loan you are paying, and keeping current on all bills.
You may/may not get the score bump to 640 after the medical debt is taken care of. But you may still be able to get a mortgage. Is the lender you are working through using FHA standards? FHA will clear credit scores under 640.
Michael,
So I got some more information from my Mortgage lender asking me to write a letter to their investors explaining the “faults” on my credit report. Which is fine, I can do that no problem
I have paid off the medical bill that was outstanding so that is an easy explanation because it will drop off my credit report by the end of July. The ONLY other things on my credit report that need explanation are 1-the judgement and 2-the two loans that are combined “the judgement”.
I guess my question is this. Sallie Mae sued me for 2 loans that I had through them, which they have combined together and got one judgement for them. The judgement is for like 15,900 give or take for the two combined (for for 6k and the other for 9k). So the judgement is on there which we have already established will not get updated due to it being a court records thing (blah blah)…
My question is… how can I stop Sallie Mae from reporting those two loans separately on my credit and show them with a “past due” balance when I am paying them via this judgement that is against me.
Seems like thats the ONLY thing that they are worried about on my credit report… the fact that 2 loans appear to be “past due” when in fact, those two loans are included in the judgement against me.
Any help would be great!
There is no standard for Sallie Mae to update the courts with monthly payments that will translate to your credit reports that I know of.
You could contact Sallie Mae and ask for some written outline of the payments you have agreed to with them. Attach proof of your on time payments pursuant to that agreement.
You could also just outline that yourself in a letter you give to your lender, and attach the proof of all payments. From what you shared in your comment, that is what your mortgage broker is asking for.
I have a question. Back in June 2013 I was entered into a judgment for 499 plus court fees. The case was over a merchant account lease. They came after me after the statue of limitation had expired. Even though this was my defence the judge still awarded them the case. I did appeal it and at both times they were awarded the case. This was a very sneaky company that I was dealing with. They send me the contract after I had signed the application, but that is another story. I received court papers stating that I had enter into a judgement and I was obligated to pay the amount owned. I checked my credit report that month and the judgment never appeared. I keep checking it every month and the judgment has not appeared my credit score right now is at 703 – 713- 769. I’ve been trying really hard to keep a good credit. Since this judgement did not appear on my credit reports I did not called the court or the plaintiff. Today after 6 months I got a call from a collection agency CLN Law asking me to pay the money. This is not my original debtor and when I asked for an address to send a money order they gave me a PO box Number. Now my concern is that if I pay for this judgement it will now appear as judgment payed satisfactory rather than not being shown on my credit reports. Im about to apply for a line of credit for my business that its not a corporation but rather under my name, and I’m also looking to buy a house with in the next 6 months. I want to know if I pay this judgement would it appear in my credit report even though it has not appear before?
It is possible it would show up later, whether you pay it or not. Have you looked up the court record to confirm the judgment is entered correctly? Errors happen… not that you would want this one fixed.
Wow! Michael Bovee you really know your stuff. I read a few of your answers and I really need some advice for my current situation. But first let me thank you in advance for your help and interest to help me resolve my conflict.
In 2010 my wife and I got married and moved into an apartment together. In 2011 two months prior to completing our one year lease we both lost our jobs. We paid the eleventh month with our 401k and some money we saved however by the 12th month we moved out before they were able to evict us. Eventually they sued us for the last month’s rent plus lawyer fees and all. Shortly thereafter it turned into a judgement on my credit. By 2012 my wife and I filed BK and away went everything. Or so we thought. Now after living with my parents in a 10×10 room with our two year old daughter and another on the way it’s imperative we find a new place, we looked into renting another apartment but found that we are on some sort of blacklist and is EXTREMELY hard to rent anywhere because of that judgement. What can we do if anything. Its hard for me to believe we have to suffer like this for 7 years. I mean what if I didn’t live with my parents? Would me and my little family be living on the streets? There has got to be a way for us to rent something. Living with parents is just NOT an option anymore.
Michael – There are probably some options for rentals even with the judgment form a prior rental. Keep looking and be upfront about what you have going on before you submit any application. If the policy with a property owner or management company is strict, they will probably tell you and you can skip the application process. You may need a cosigner or larger deposit in some instances.
Hi Michael,
I have three judgments against me for credit cards. I went from a very well paying job to disability which was less then $20,000. Unfortunately, I was just not able to pay them. Two are dated in 2007 and one in 2008. I still cannot afford to pay any of the unpaid balance which has probably quadrupled in time because of the interest. I am trying to finance a home and the loan officer said there was no way I would qualify due to this matter. Since it will be seven years soon I am assuming or rather hoping they will come off my credit report. On my credit report they are not listed under collection and no collection agency has contacted me in three or four years. I have been told though that the judgment can be sold to a collection agency again and the seven years will start over again from the date of the sale. Is this true? Also could they still be listed on my credit report after seven years stating time had passed and were “obsolete”. I’m sorry I can’t think of the correct word for what I am trying to say. I live in Alabama and I am assuming that 7 years is the statue of limitations. I really need help with this because I am in a situation where I need housing within a few months. Renting is not an option. Thank you so very much for your help. Anim_lvr
You could still find that you are unable to get financing after judgments age off of your credit reports. That is because you still owe the debt, and the fact that the judgments are unresolved is still a matter of public record. The credit card judgments are good for 20 years in Alabama. They can be growing with as much as 12% interest (legal limit in Alabama for debt like this).
Being blunt, I do not like your chances here.
Who are the judgment creditors we are talking about here (name of plaintiff). What are the amounts (roughly) owed on each?
I have a question. I returned my car lease and was charged 1600$ in overage miles. It is now 60 days late and also in collections. I am in the process of getting my home loan with FHA program. They require no late payments or collections. If I pay my lease bill, will they automatically remove any derogatory information (late payments, collections) from this account? The goal is to have no history of negative information so I can get the loan. NO OTHER PERSONAL ACCOUNTS had every been negative. My credit score went from 715 to 642 in 30 days once this one lease bill went to collections. WHAT DO I DO PLEASE?
You can take a shot at the finance company removing any reference to the late pay from your credit reports by offering full payment. But more than likely, you will have a paid account that either went to collections, or was two months late.
Did your loan officer tell you FHA underwriting required there be no collections appearing on the credit report? You may have some specific things going on for that reference to be made, I do not know, but FHA underwriting will often require no unpaid collections, not that there be none at all on the credit report.
A while back i had several medical bill that added up to around $1,400 and i asked for a detailed outline of the bills from the collection agency.
What i recieved was a bunch of medical bills that had treatment numbers and a treatment location number. I then asked for more details about the bills because i had no clue what treatment #(#s) were or what place they were even coming from.
I called up the hospital and they would’nt give me any info. The hospital saying it was sent to collections and they were not allowed to talk to me.
I then sent another letter to the collection agency asking what these numbers ment. The next week i got a knock at the door with a police officer seving me papers.
My dad and my lawer went into a pre. Court meeting. My lawyer called the clerks office a few days later and the clerks office said the case was dismissed.
Well all of the suden i get my wages garnished. I have payed of the garnishment but now i just got another medical bill get sent to them. I know this bill is acurrate but, I am worried about paying it to this collection agency. With all of the history between us.
My question is how is the best way to pay this? Because in the past i have payed small about to them (because i knew what some of the bills were), before they garnished me and they say they never recieved some of thoughs payments to them.
Also how can a collection agency garnish my wages after the case was dismissed? Can they do this without reserving me and is their a way that i could pay the original depter? I dont trust this collection agency and im afraid to paying thinking they might still try and bill me again for the same bill like they have done in the past.
Get all things documented when dealing with the debt collector. If they will not send documentation about your payment arrangements etc., record everything said on the phone with the collection agent, and let them know you are recording and why.
Something certainly happened with the court case, but I cannot speculate as to what. You can pull the docket for the case from the court and post more about that situation when you read through the case progression.
You do have an ability to request a hearing from the court about any garnishment creating a hardship. State’s set a limit on amounts that can be garnished that will vary depending on each persons income and expenses. Look into that, and how to request a hearing, by calling the court clerk.
What is the name of the debt collector you are dealing with? Have you considered filing a complaint about your dealings with the CFPB?
Good morning,
In 2006 I had an overpayment from the state of Washington unemployment office. My wages were garnished and the debt was paid in full in 2011. The issue I am having is that the debt is showing up on my credit report as a “tax lien” filed in 2006 and released in “2011.” This appears to be a debt owed to the IRS. This is dragging my credit score to the ground. I was told that a “tax lien” is not removed until 7 years after the date of “release.” I never owed the IRS taxes. So my question is, why is an unemployment overpayment debt showing up as a “tax lien” in the court records. I contacted the unemployment office and all they can say is that they can send me a letter showing I paid off the overpayment – this does not resolve the fact that it is showing as a “tax lien” they say that they have no control over that and that I will need to contact the court. I am extremely frustrated as I have worked hard to clean up my credit – I have opened up a couple of new credit cards and a car loan which Ive had since 2012 – my mortgage, cards and car all all paid on time – I have a couple of very old collection accounts (which Ive tried over and over to dispute) are do to come over my report in July and the bankruptcy is due to fall off in October of this year. Any advice you can give me on the unemployment garnishment debt filed in 2006 and paid off in 2011. If this was listed as a judgement, which it actually was, then it would have been removed by now as it is 7 years from the date filed that those things get removed, if I’m not mistaken. Please, any advice would be greatly appreciated.
Alice – Is the account showing as an “IRS” lien? You seem to indicate that it is, and that should be simple to dispute. Have you disputed this entry and requested the correction already? Perhaps your repetitive disputes have flagged your file.
Hi Mike,
Thank you for your reply. It shows up as a “Tax Lien” I went to the courts and got a copy of the first document “tax warrant” is how the unemployment dept filed it. So the Courst told me to send Equifax a copy of the judgment showing that it has nothing to do with the IRS and that it was an overpayment of unemployment benefits,, I have disputed this three times thus far with Equifax – I faxed in my documentation and spoke with the disputes dept in Atlanta – who attached my document to my recent dispute and said that she will flag the public records dept to inform them that there are inaccurate as to how it is being reported – it should be a judgment not a lien which means it should have been released 7 years from the date it was filed which was 2006. not from the date it was paid (2011) This has been a nightmare but I am not giving up until it is OFF my report – I have no IRS debt or issues and I never have. But the unemployment department filed it as a tax warrant but it clearly shows its an overpayment of benefits nothing at all to do with taxes and that is the court certified document I sent in. It is currently under investigation. – I am still waiting to hear back
Alice – Please post the outcome and if needed there are some additional steps.
Hi Mike,
Equifax came back with the same generic reponse ” Verified” is there anything else I could possibly do?
Recap of the issue: unemployment overpayment filed in 2006 as a tax warrant. Paid in 2011. Still on my report and is not scheduled to be removed until “7 years from the date paid” which is suppose to be 7 years from the date filed as it is a Judgment nothing to do with the IRS… It was an unemployment overpayment. Thanks for any info you can provide
I would encourage you to file a credit reporting complaint with the CFPB here. Be detailed and precise with all time lines, efforts at communication, etc.
I would also start looking at your options for suing based on Fair Credit Reporting Act violations. Are you still living in Washington? If not, what is the name of a nearby larger city?
hi Mike thank you so much for your response and information you have provided and yes I am still living in the state of Washington.
Alice
I am going to send you contact info to some experienced fair credit reporting consumer law attorneys. A couple of them are in Portland (may still be able to help you), and one I know in Spokane. Distance does not have to be an issue in these cases. Kirk, for instance, works with people all over Washington.