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?
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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. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
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.