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.
I have a judgement on credit report since 2004, it was from when I was young and working full time and going to school full time. Obviously judgement do not fall off. It is through the circuit court. I have the money to pay it off in full, but does that hurt or help my credit at this point. It’s 10 years later and I am slowly rebuilding my credit but this thing just lingers over me. Thanks
What is the judgment the result of (the underlying debt)?
Who is the judgment creditor?
Typical judgment debts for most of us stay on your credit for 7 years. The debt is still collectable and with legal options to garnish wages, levy bank accounts, and lien property, so you will still want to resolve the issue, but the credit reporting after 10 years is odd. Call me to talk about this some more before you go to pay it off if you want. I can be reached at 800-939-8357, choose option 2.
It was for a line of credit at at a bank, The bank is the creditor I would assume, credit report is showing its with the county court office. I will definitely give you a call.
That is not a scenario that should last more than 7 years on your credit reports. Something is up. If you get my voice mail be sure to leave a message. I am often tied up on the phone.
Thanks Michael,
I just double checked my credit report, and apparently they didn’t file until 12/2008, even though the loan went bad in 2004. so it won’t be removed until December of this year (15).. I am assuming based on your previous response to another person, I should still look into getting it taken care of even if it will removed this year? Do I contract the courts or the original creditor?
Yes, you still want to resolve judgment debts even when they are too old to show on your credit. They still can be collected on and with legal options such as wage garnishment, bank account levy, and property liens, all will vary depending on the state you live in.
You will likely be dealing with the collection attorney if they still have the file, and not the court or the creditor. Really old judgment debts may not be with the attorney anymore, or with a new one.
If you need help with strategy, let me know.
Hello Michael,
I am a 100% disabled veteran, only receiving VA disability. Asset Acceptance sued me for an old HSN bill (that was originally $653.00). Sadly, I was battling health issues and was unable to show up for my hearing. Not surprisingly, a default judgment (now ballooned to $1000.00) was entered against me in 2012. Since it’s too late to try and vacate the judgment, I corresponded with this shady collector via email and presented them with a copy of my total and permanent disability paperwork from the VA. They responded in writing that they were “ceasing all collections activities and would be filing the appropriate dismissal paperwork with the court.” They know I am judgment-proof, so in exchange for Asset to file paperwork to vacate the judgment, I am offering them $100. Basically, the money is a carrot for them to file the paperwork. They know they aren’t going to get a dime otherwise, and I can “wait” for this small judgment to eventually be removed. Asset is one of the WORST collections agencies out there and their practices unscrupulous.
What are the odds they will take the money and file the paperwork. (everything will be in writing, of course)
Any further advice would be helpful. (and yes, I can prove I was at the VA hospital on the hearing date, although one attorney told me it’s mute at this juncture).
Kind regards,
L
Can you clarify or confirm the following:
Asset stated plainly to you they would be dismissing the court action.
If they told you they will be dismissing the court action than they will likely do that. You would not need or want to offer them a carrot of $100.00 to remove the judgment from your credit reports. That shows a willingness and ability to pay. They are agreeing to cease all collection and drop the judgment because you meet the criteria for them to do that.
I should point out that while you say Asset Acceptance is the worst ever, they are one of few debt collectors that will openly state they cease all collection activity, and even legal actions, when someone meets their definition of being non collectable. I only know of one other debt collector that states this policy publicly and they are owned by the same parent company as Asset Acceptance.
Hi Mike-
I had a judgement filed against me from a furniture company in VA Beach after losing my job. I was working temp jobs and paid when I could. I moved back to MD with my parents and made sporadic payments. Although I made a payment in October 2014 my account was still past due and a judgement was filed in November 2014. I did not get any notice of the court date because they sent it to my old address. i found out about it in January 2015 when I received an alert from CreditKarma. I called the company and set up a payment arrangement. I asked for the arrangement in writing and my representative sent me an email outlining the payment arrangement. A month later in February after my first payment was drafted from my account I called to make sure they received it and that all was well. The company then said that after the payments would be made that it would not clear my balance and close my account. I referred to agreement in the email sent in January and they honored it. The judgement is still on my credit report even though i have paid it. I am trying to figure out how to get it removed because I would like to buy a home. I have done some research and found a form on the court website called MOTION TO SET ASIDE DEFAULT JUDGMENT. On the form there are reasons listed for why the judgement should be set aside. I am wondering if the reason “an accord and satisfaction (attach proof).” would be work if I attach the email and showed proof of payments, OR is the accord and satisfaction only for actions taken BEFORE the judgement was filed. If I am grasping at straws here is there anything that you can suggest that I do to try to get this off of my credit report. 7 years is a long time to have to live with my family until my credit is worthy of a home mortgage loan.
Thank you in advance!
Is the judgment at least updated to show that it is paid or satisfied on your credit reports? If not, you can dispute that with the lender and also with the credit reporting agencies.
You will not likely be able to set aside this judgment for any of those reasons. But it will not matter. A paid judgment will not hold you back from getting a home financed using FHA underwriting standards. If the judgment were unresolved you would be declined today, but yours is resolved. Make sure it shows that with the court and then with the credit bureaus.
What are your current credit scores?
Thanks for the response Mike!
My score on CreditKarma is 527 Transunion and 526 Equifax. On Credit.com its 626 and my Vantage is 537. The judgement is not showing as satisfied on my Equifax. .Why is there such a big difference in my scores and which one is most reliable. I have old medical bills that I am paying off. I put myself on a 6 month pay off plan which I have been following and I am currently on month 4.
Thank you!
The wide variation in credit scores will often be sue to different information being included in each, and also the scoring algo used. The new Vantage score does not factor in paid collections for example. Paid medical collections will not factor in as heavily with FICO is another.
I would start with making sure the judgment is updated to show paid satisfied with all of the bureaus, and then start looking for any other inaccuracies or out of date incomplete info, and attack those next, and try to have all that cleaned up by the time your medical bills are paid off. Once you have all of that done you will begin to see a clearer picture of where you are at credit wise.
Thank you for the quick response and for providing me with a plan of action. What would be considered out of date information?
Accounts that have a derogatory nature that are more than 7 and one half years old; an address you never lived at; employer information; mortgage loan servicing is not updating correctly have changing hands… all are some examples of things to look for.
I have a judgement that I have been making payments on but I can’t afford to keep up on the payments. I’ve expressed this to the collection agency but they say I don’t have a choice because they are not willing to change the payment amount. I told them I would work through a credit counseling agency they told me it doesn’t matter because they won’t take less than $375 a month from them either. They already have access to my bank account and are not threatening to levy my wages. I can’t keep up the payments at $375 a month, what can I do? I offered a lower amount to pay but they will not accept a penny less than $375 a month. A collector once told me that as long as I send them something per month there is nothing they can do, is this true? And what options do I have as far as getting a lower payment amount per month?
They do not have to accept the amount you say is all that you can afford.
Whoever told you that as long as you send something, they cannot do anything, did not know what they were saying. That is simply not true.
Let’s dig in and see what you have. Answer the following questions and lets go from there:
Who is the collection law firm that you are dealing with?
Who is their client, or the named plaintiff?
What state are you in?
What was the balance of the judgment, what is the total amount still owing?
What all has occurred recently that is going to prevent you from making the payments you already have set up?
The collection agency is Messerli and Kramer in regards to a judgement from Capital one bank in the state of MN. the original amount was about $4100 or so and we are now down to $2800. I could NEVER afford the payments my bank account keeps going negative and I get charged with over draft fee’s. I have pointed this out to Messerli and Kramer but they refuse to budge on the amount of $375 per month.
I would stop the payments if it were me in that situation. I would probably re-approach them shortly after the date for my prior payments had passed and negotiate a new lower payment (so that I could remove any fear of lien, bank levy, or wage garnishment). Either that, or somehow pull together roughly half the amount still owed and see about negotiating a lower lump sum pay off.
I could possibly come up with a lump sum and negotiate the remaining balance. It would put me in a tight financial bind for a couple of months, but it’s better than having to deal with them. How much do you think I could get it dropped down? The judgement expires in 2017, which is why I think they are pushing so hard and the original credit limit on the card was $2500
Connie – are they threatening to garnish your wages or not? If so how much is your weekly pay?
My targets for settling judgment debts are often 50% of the balance owed at the time of negotiations. There are reasons this target will go up or down. Having just come off of regular payments, and unless payments were ceased due to hardship, it could be good to be prepared to pay 60% of what remains owing.
Michael
I have paid off a judgment and I have recorded it with the clerk of the district court. Do I need to send
copies to the three credit reporting agencies?
You could send a dispute to the credit bureaus with the documents (use certified court copies) to support that the judgment is satisfied. If you do, send the letter and supporting documents via certified mail return receipt.
If you are not in a hurry to get your credit reports updated (close on a home or other financing), the credit reports should update in the normal course, which can take a month or two.
If it were me, I would send the disputes showing the judgment is paid, even if I was not waiting some credit transaction.
Thank you so much for the advice I will try it that way. My husband has a credit card currently at 1700 with a 3000.00 limit. Is it better to pay that down some so the utilization is lower before tackling mine. Since we want to try for the house in December? He is currently at 615 for his mid score. Im thinking if we save the 800.00 to use it for his cc bc thats what is gonna get us closer to having the house than tackle mine. Would it make sense to get to the judgement after medical bills? The medical bills are split up from different places and dates. But are all more current than the judgement.
You could pay down his credit card, but run that by a mortgage loan officer (might be a good idea to start working with one now).
You could leave the judgment lay until the medical bills are settled. How many separate bills are there?
I have a judgment listed on my credit report to a state agency for $443, with a court address listed. However, when I attempted to contact that state agency, they sent me to a collection agency that the debt had been sold to, who now demands $3200 to satisfy the debt. Is it possible for me to pay the $443 judgment amount to the court to satisfy the judgment? Or do I have to pay the collection agency the much larger amount? The folks at the state agency office claim that I can no longer pay them in order to satisfy the judgment..
How old is the judgment? What state are you in? What interest did the judge set on your judgment? Who is the debt collector you are now dealing with? What was the original $443.00 about?
It’s from late 2009 in California, but I’ve lived in Washington since that time. It was from an income tax return overpayment that I foolishly ignored at the time.
I don’t know what the interest rate was set at by the judge – the last notice I received simply said that an “automatic judgment and tax lien” would be filed by a certain date, and since then the only record of it that I have is on my credit report.
I’m actually not sure of the debt collector’s name either – when I call the payment hotline given by the state, it redirects me to an automated recording that just says “Debt Collection Services” and gives the amount owed along with payment options. I’m not even sure how I would contact them other than sending a letter to the address given in the phone recording. There are no options to talk to anyone, etc.
The amount is likely being inflated based on an interest and/or penalty that is set for judgment debts, or that may be applied based on state legislation for debts owed to the FTB.
You could send a written request for a break down of the amounts owed, but you could also look up the judgment in the court record (probably free access on the court website) and see if you can tell from the judgment entry documents how the math works out to such an inflated amount today. It is not uncommon to have tax debts inflate so much.
If it were me, I would do both.
You cannot pay the court the original 443.00 to satisfy the judgment. That is the base judgment amount and would not satisfy what is owed today.
Does the recording you heard, or anyone you spoke with, directly tell you that your debt has been sold off, or refer to a debt collection agency name?
Thanks, I’ll try those two options.
The recording doesn’t explicitly say that it has been sold, but the person I talked to told me that I couldn’t pay her office because it was “sent to collections”. I suppose that could just mean a separate department or something and not a separate company. She just referred me to that automated phone system.
Hi my husband and I would like to purchase a home by Dec. or early January. My credit is pretty much shot. His is up and coming I suppose. We would like to use his credit but since we are in TX I know he needs to qualify holding my debts. So I want to clear up as much as possible.
510 Experian 488 Transunion (539 as of today) 542 Equifax (536 as of today) He did just add me to his capital one credit card as an authorized user. I believe this has helped my credit go up some from the time this was pulled.
I know the credit card utilization brings me down. Which the limit is 500 and it’s at 230 currently so I can bring that below 30%, how much will that help? Payment history is very poor as I haven’t had any accounts to pay I guess. I have medical debt and student debt currently against me. I am in a repayment program for the loans in July I will be eligible for deferment I believe. Will this affect my score any? I have 19 hard inquiries on my report and 1 judgement (a chase cc I think from 2006) the file date is 07/2010 which I know is hitting me pretty hard. What’s my next step? What will bring my score up the fastest and how do I get this judgement off. I don’t really have the money to pay it (1600 is the amount I believe) but I need it gone. I am concerned that it will just renew if left unpaid.
If you are going to be part of the approval process for a home loan you will need to resolve any unpaid debts before then. That means settling the judgment and getting it updated with the court to show satisfied.
How much is the medical debt in collection on your credit reports?
Do not apply for any more credit (create any hard inquiries).
How much are your student loans, and is it that your loans are coming out of default, and you will then be able to defer? What will the deferment be based on?
We plan to use only his credit for the home. Will the judgement fall off in 2017 as in no longer affecting my credit?
The medical debt is 1,496.00 and student loans that are past due are 30,905.00 they will be out of default after the 10th payment and yes then I can defer. Deferrment for economic hardship.
Getting your student loans out of default will help that part of your credit reports start to heal.
The judgment may not appear on your credit report after 7 years from the date of entry in the court, but it does not go away. It can be located through the public record, and can still be viewed by potential creditors. This fact can mean that unpaid judgments will hold you back from credit goals, while not necessarily holding down your credit score.
Judgments can be settled for less than the balance owed. Can you come up with half?
Medical bills can be settle for less in some circumstances too. How old are the they? Did insurance cover any portion?
What kind of credit goals? Even if my score is higher I would still be unable to obatin credit? No I couldn’t come up with half anytime soon. The medical debts range from 2010 up to 2014. I was under my mothers insurance up until the end of 2012 so I am not sure about coverage at that time. I also had medicaid coverage through that time as well. I wouldn’t even know how to go about determining what’s what. Would i call each creditor and set up arrangements?
You would contact the current debt collectors on the accounts to resolve them. I think you have a shot at negotiating the judgment debt for half-ish based on your current financial situation.
If it were me, I would save up to settle the judgment with a lump sum offer first. After that is out of the way I would approach the medical bills the same way.
Its 8 to 10 different medical bills.
You can work to settle or pay those one at a time as money comes in too. Keep me posted on your progress.
A debt (which I do NOT own) went to collection in early 2010. On 04/24/15 I had a judgement filed against me. My court file has a “Certificate of Service” but the stated serve date 04/05/15 is incorrect. FYI, I have not responded to the notice.
Goal: Get this completely removed from my credit report AND public record. I am willing to pay IF it will achieve my goal.
Why: I am planning on leasing a car in 2 months. And I am pursuing a career in the financial industry (taking Series 7 and 66 soon).
Question: What are my options? What is the best and worse case scenario?
Can you be more specific with some details about how this is not your account?
How off is the date off service filed with the court (an inaccurate date is wrong regardless, but I do want to understand how much of swing there is between the dates)?
You will often find you need to petition the court formally in order to vacate or set aside the judgment. If your scenario is just way out there, and should have never happened had the debt collector understood the facts, it is possible to get a collection attorney to do the right thing and dismiss the suit, but post answers to those questions and lets go from there.
Hi Micheal.
The collection account is for a medical bill and at the time of service, I had full medical coverage, When I checked into the hospital, I gave them all my insurance info. Several weeks later, I received a bill in the mail from the hospital showing I owed the full amount. I called the hospital right away. I gave them my insurance info (again) and the person I spoke with said they would apply my insurance and that my balance would be adjusted. So…. the hospital did NOT apply my medical coverage.
I searched ALL my records to find my insurance info, but I couldn’t find it. During a move to a new home, some boxes got lost.
As for the date, it was off by a few days.
Questions:
1. Since a judgement as already been made, does that mean the collection agency is going to garnish wages from my paycheck?
2. Since I cannot find my insurance documents, I’d like to resolve the matter and remove it from my credit report and public record. If I call the collection agency, would they even be able to remove it completely? I am willing to negotiate a payment to resolve this ASAP.
3. Is there a another number to call? I tried calling the 800-939-8357, but I was not able to speak with anyone. Or is there a preferred time to call?
THANK YOU SO MUCH!!!!!!
Not being able to find your insurance information is not a good reason to roll over on this. How much is the bill total?
The hospital or medical service provider should have your insurance on file, you could coax it from them perhaps. Was it an employer that provided coverage, they will be able to get you the info you need. If private coverage, your bank records will reveal the name of who you paid, and a quick search will provide the contact information you need, then you call and they look everything up by your social security number.
A debt collector will not be able to undo the judgment. That is something that the court has to be involved in, so it is a formal process.
I would really want to get to the bottom of this. Why not respond with all of this through the court process?
You can call the debt relief hotline and reach different services for different needs. Option 2 will connect you with debt settlement experts, sometimes even me. If no one picks up you have to leave a message if you want a call back. Everyone that is connected to the hotline will have set hours. 9 to 5 weekdays are a safe bet for calling times.
Whether, and for how much, you could be garnished is based on state law. Where do you live?
I am working on cleaning up my credit in order to buy a house. I currently have two positive lines of credit, car payments and a furniture company that reports to my credit, I have one card paid off and closed, and I have 4 student loans I am making payments on. Out side of that I have 6 medical bills ($11000) and one judgment from an apartment complex ($646) My credit score is currently now 501, I am looking to have my credit score up as soon as possible to be able to purchase a house next year. Where should I start? How should I handle the judgment that is from 2011? I have been doing my research and am really torn on where to even begin. I’m in Dallas Texas. Thanks for your help.
When were the medical debts created (date of services)?
Did you have insurance, and did that cover any portion of the bills?
How much money do you have in reserve currently in order to resolve the debts?
I have an old judgement that was with citifinacial in 2008. The account was then sold and I ended up paying the collection agency portfolio recovery associates. My issue now is no one filed a satisfaction letter with the court so it is still showing as a debt on my report. I contacted portfolio and they said since they didn’t file it they were not responsible for the satisfaction letter. It is also impossible to get ahold of the legal department at citifinacial unless you’re a lawyer. They citi and port are reporting 0 balances but not the court. So my question is who is responsible for filing it with the court and will I need a lawyer? Thanks in advance
I am not entirely sure it would not need to be Portfolio Recovery Associates that would need to update the courts. When was it you spoke to PRA and they told you they are not responsible?
You could also file a motion with the court yourself in order to get this all finalized. I would encourage you to work with your own attorney if that is the direction you take.
Hi I have judgment for 4000.00. It was incurred under my maiden name. So was the debt. My mother-in-law and my husband pulled some money together to buy a car so my 16 yr old could learn to drive. The car was put in my name. The title hasn’t come yet. Can someone come in the middle of the night and snatch this car from my driveway? The price paid was 5400.00. It should have been in my husbands name but because I researched it test drove it etc the day we went to pay for the car the bookkeeper had a a 3 inch thick file with papers I signed in triplicate with only my name on it even though it was requested it be put in my husbands name time was a factor (had to go to work). The title hasn’t even come in the mail yet and I am loosing sleep over this.
What state are you in?
How old is the judgment, and when was the last affirmative collection effort made by the judgment creditor?
You will have time to transfer the title to your husband through the DMV.
Hello,
i have a judgment against me from 2005. i am currently making payment/settlement arrangements with the creditor to avoid garnishment. i have not yet made any payments, and know to get an agreement in writing BEFORE paying them anything. i live in texas so they cannot garnish my wages, but i have only just begun to try to rebuild my credit, and i am trying to avoid having my bank account frozen.
my question is this – since it has been over 7 years since the judgment was filed, am i correct in assuming it no longer appears on my credit report? and when i start making payments to satisfy the judgment, will that affect my credit score? once the judgment satisfaction is filed with the court (many years from now, most likely), will THAT impact my credit score in any way?
i know that even if none of the above scenarios will impact my score, this judgment will follow me around for the rest of my life if it is never satisfied, so i am trying to deal with it now as best i can. the amount of the judgment is $10,834.65. The creditor (a large, well-known bank) is asking me to propose a payment plan that includes a down payment and monthly payments. they also told me i can propose a lump sum settlement at any time.
do you have any idea what they might expect for a monthly payment, as far as a percentage of my income? they have asked for my last 2 tax returns to support my proposal amounts. i plan to enter into a monthly payment agreement, then make a settlement proposal next year when i get my tax return. to further complicate matters, i have been filing taxes jointly with my child’s father but i left him recently, and we have not yet begun the process of divorce, and i have no idea when i will actually file. he is unpredictable, and i dont want to pursue without legal representation. i have spoken with a lawyer, but have not been able to get together the retainer fee. How will our filing jointly status affect how they will determine if my proposal is acceptable? or does it matter at all?
mostly, though, i am concerned about how all this will affect my credit score, if at all.
The judgment should not be on your credit reports 10 years later, but check to make sure.
Your payments, lump sum settlement, or update to the court record to show a satisfied judgment will not re-list the judgment on your credit reports, or impair your credit.
I need to know the name of the judgment creditor and the collection attorney handling it in order to offer anything like the feedback you are requesting. You are welcome to schedule a phone consult if you are unwilling to post who those companies are. Send me an email (same address you get these comment notifications from) and we can schedule something.
Hi Michael,
A judgment was entered against me in Illinois back in 2011.
Once I paid the awarded judgment off, I received a “RELEASE OF JUDGEMENT” from the prevailing party’s Attorney.
Is a Release of Judgment any different from a Satisfaction of Judgment or a Vacated Judgment?
If so, how can I have it removed from Credit Report?
Thanks in advance
It is the same for the most part. You cannot use it to get a judgment removed from your credit reports, but could use it to get your credit reports updated to show the judgment is satisfied if need be.
What are your current financing goals that have you concerned about the judgment being on your reports?
Thanks for the prompt reply Michael.
My current goals are to purchase a new home within the next 2 years.
However, because of the judgment on my file I may have to wait until 2018 to have a high enough score to get a good interest rate. Meanwhile I will continue to save $ and have an even bigger down payment on a new home in the future.
Also, how much of a hit is a judgment worth on credit score points wise even if it is shown as paid in full?
What are your credit scores today?
How many open and current accounts are showing on your credit reports (car loan, credit card, student loan)?
Unfortunately I have 2 judgements against me one from Capital One Bank for $4,000 and another from Midland Funding for $1,356, they are both being handled by a collection agency here in Minnesota. I am currently making payments on both of them. The larger judgement from Capital one comes off my credit report in 2017 but the one from Midland Funding doesn’t come off until 2019. My question is how long do I have after the judgement to go back to court to try and have them vacated? Or if I just pay both of them off but they remain on my credit report, how much will it impact my score? I want to buy a house in the next couple of years but of course with judgements it’s impossible to do so. In 2009 When my Capital one card got charged off I was pregnant and on maternity leave with limited income. I should have done something at the time but I was dealing with a becoming a new and single parent. Now I’m trying to get everything straightened out and just need an idea of what I can do to get this removed. Not to mention I’m paying $450 a month to get this resolved, I can’t afford it but I feel like I’m being bullied because when ever I can’t make a payment they try to withdraw from my bank account. Please help!!!
It is very rare to make any effort to try to vacate judgments that you are making payments on. What would be the premise for you to attempt to get the judgments vacated?
If you pay the judgments off, your credit reports will be updated to show they are satisfied. You can still get home loans, car loans and other financing approved when you have resolved judgments on your credit reports.
How much is going toward each judgment?
$375 per month for the Credit one and $75 for HSBC. Credit one will be paid off in about 8 months.
Sorry meant to say Capital One and Midland funding. I get mixed up because I have 2 cards with credit one bank that are in good standing
I’ve read some of the other comments and replies and it has become evident that vacating the judgement will most likely not happen. I have other items on my credit report, some I negotiated the amount and settled and some not paid. Most of them are close to the 7 years and coming off in 2015. Can collections show up on your report again after 7 years if resold?
The limit to 7 and one half years of derogatory credit reporting does not reset in anyway when collection accounts change hands. But you do need to monitor your credit to be sure all items are deleted at the right time. Debt collectors have a bad habit of adding more recent dates when credit reporting. You have to catch that and dispute collections off your credit where necessary.
Hi Michael,
I hired a lawyer to negotiate my judgement (thanks for the recommendation!), and he negotiated it down to ~40%. I have a signed agreement with creditor:
“This letter will confirm that We will consider the above account SETTLED IN FULL for the sum of $xxxx, contingent upon clearance of payment”
It’s all good, but then my lawyer asked me for $400 more if I wanted to have this judgement dismissed vs. paid. It’s been more than 2 months since then, the judgement status is still unchanged in both court record and credit report and lawyer stopped responding to my messages. Any advice?
It’s FIA Card Services. The Law firm is Harris & Zide
What you are saying is a little odd to me Serge. Can we connect on the phone so I can get into the details better? You can email a good time and number to call (my email address is the one you get these comment notifications from).
Hi Michael – I had a judgment placed last fall from an old credit card balance. The total was $1300, I agreed to pay it via the debt collectors lawyer in full. They’ve since sent me a letter for my records stating that I paid it off completely.
Today when I check my credit karma report, it shows the judgment and under status it just shows ‘Filed’ not paid or satisfied. Any suggestions? My credit score is right around 690 and I am trying to get into the 720’s as I am trying to purchase a house this year.
Any info is appreciated. (I am in New Jersey btw)
Thanks!
Who was the creditor or debt buyer that sued, and also who was the collection law firm? Also, have you checked any other credit reports other than the free ones like Credit Karma offers?
I would look up the court record itself to verify whether the court is shows your judgment as paid/satisfied.
Let me know what you find out and lets go from there.
It was from Arrow Financial SRVC, LLC. & The law firm was ‘Fein, Such, Kahn & Shepard, P.C.”
No I haven’t checked anywhere else besides credit karma.
Thanks again
I have a judgment on my credit report, I called the courthouse, they told me that the it has a default judgment entered, that I would need to contact the Law Firm. Once I get in contact with them I want to be able to pay them in full. Will it be the law firm that will report full payment to creditor and courts so that I can have this judgment removed off my report. I am trying to buy a house and this is the only thing keeping me.
Once the court is updated by the law firm that the judgment is paid and satisfied, it can take some time for the data aggregators to pull your courts records and upload that to the credit bureaus.
There are ways to expedite that, so be sure to get anything you agree to in writing if you need that to push things along. Also be sure you get any proof of payment you make.
Is there any time limitation you are up against (for closing)? How much is the judgment for?
The bank has told me to get back in touch with them once this matter has been removed off report. The judgment is for $2964.00 plus court cost$30 and attorney fees 741.23 and post-judgment w/5% int. from date of judgment until paid. judgment was set back on June 2009 until now. Am I looking at a big interest cost?
State law will often cap judgment interest. What state are you in?
Lets assume your interest rate is capped at 12%. That is going to add a significant amount to the debt.
I would suggest trying to settle the debt for as much of a savings as possible.
Hello Michael,
I have two judgements on my credit reports. One is with Crescent Banks for a auto loan that was voluntary repo. The other is from an accident I had and was sued by Alfa Insurance. I have been disputed these for the past few years off and on and i have gotten Alfa completely off of my Equifax but it remains on my other two. The Crescent one just recently showed satisfied on my equifax even though i havent paid it, but still shows as a civil judgement on the other two reports. My wife and I are looking to purchase a home in March of 2016 so I need your help and advice. My experian is 626, my transunion is 619 and my equifax is 555. If I so happen to get these off of my credit report, will the bank im trying to get a loan from still be able to find out about the judgements? Do you think its even a chance to get these judgements off? Thanks in advance my friend
Yes, the bank can still find out about the judgments even if they are not on your credit reports. Those judgments are part of the public record.
No, I think it highly unlikely you will get all three bureaus to delete the judgments.
How much are they?
One is $15000 the other is $10000. And on one credit report one of the judgement says paid. But do all the banks look for judgements in public records if nothing is showing on the credit report when trying to get a home loan? And if so, then, is the only way to get a home is to pay them off? Thanks Michael
You would have to be lucky to get a home financed with a judgment unresolved out there. Public records are part of the loan underwriting process. The fact that you have two makes it worse.
I would not feel good house shopping next year only to have the place I would like to buy be out of reach come closing time because of the judgments. And as soon as your credit is run for a mortgage, debt collectors can see it, which can make negotiating after the fact harder and certainly more expensive.
You would be in a better position if you negotiated the debts now, when there is time to be strategic about it.
I would suggest you call in for a consult so I can dig as deep as I need to in order to help you come up with a strategy. You can set one up with me by submitting the consult form.
Hello Michael,
In 2010 my home was foreclosed on due to financial hardship. in 2013 I received $3,000 from the Independent Foreclosure Review settlement against several banks. I became aware that there was a judgement on my credit report after I completed 12 hrs of classes to obtain a certificate for completion of the Homebuyers classes for assistance in down payment and closing cost. The judgement is for a total of $8,000.00 for a central air system placed in the home foreclosed on. I am ready to purchase and do have a stable job and figure if im paying rent to another homeowner I can do it for myself. But to my surprise I was denied the loan because of the judgement. Can you give me some insight into what I can do.
Were you never served the lawsuit? Have you looked at the court record to see the address the process server lists for where someone was served? Is that an address you are familiar with? Was there alternative service filed with the court?
Short of finding a way to challenge the judgment, you may be looking at settling the judgement in order to progress with your home loan goal.