First, write down the court information listed under the judgment in your credit report,
Then contact the court and ask them to send you a copy of the judgment. Once you have a copy of the judgment, try any of the following techniques to remove it from your report.
Try the basic dispute method to see whether the judgment will simply fall off. If you have no success with challenging negative items, you can settle them for 20-50 cents on the dollar and try for a deletion. If the creditor won’t accept a complete deletion, request that your creditor list your account as “paid as agreed.” From there you can begin the basic dispute process.
Make sure you get a judgment satisfaction letter to send to the court advising them that the debt was paid. You can make an agreement with the creditor’s counsel to stand still for full payment of the debt. You can then file a motion (i.e. make a request) to have the judgment vacated based on a mistake such as a clerical error. Most likely, the attorney will not respond to your motion. As a result, the judgment will be vacated. Make sure you send the order to the credit bureaus for complete deletion. You can file a motion to have the judgment vacated (dismissed) based on a technicality, errors in the complaint, or the judgment has moved to another state, or the collection agency did not validate the debt. A technicality can be. You were not properly served or the statute of limitation has run out to collect the debt. You can find errors in the complaint like. The amount of the judgment was wrong. Your name is misspelled, or the date is incorrect.
You can file a motion to have the judgment vacated based on discrepancies in the notice or any difficulties in obtaining it. For example, if you did not initially receive the notice, if the server left the notice on your doorstep or at an incorrect address, or if your spouse was served instead of you, you may be able to have the judgment vacated. Also, if the notice has the wrong district indicated, your name incorrectly listed, or if you are ill on the day of court, you may also be able to file a motion. If the judgment follows you to another state, you can dispute the interest by arguing that the collection agency did not validate your debt according to the FDCPA. By doing this, it can result to the judgment being vacated.
Public record information, such as bankruptcies and tax liens, can often be seriously damaging to credit health, so it’s rarely a welcome sight on anyone’s report.
Included in the public records category is a group of derogatory marks classified broadly as “judgments.” Here, we’ll explore civil judgments and their effect on your credit health.
What are civil judgments?
Criminal record information isn’t typically included on your credit report, but civil judgments – like the results of a civil lawsuit or a child support case – are often included. Put simply, a civil judgment is a ruling against you in a court of law pertaining to non-criminal matters, often requiring the payment of damages (for instance, if you lost a case or if you failed to respond to a lawsuit at all).
These marks on your credit are not generally reported to credit bureaus directly. Instead, civil judgments are documented in publically available court records, which credit bureaus may review and include on your credit report.
Other than possibly appearing on your credit report, civil judgments may also result in wage garnishment (a legal order to have payments automatically deducted from your paychecks), eviction or a real estate attachment (an order that forces the sale of property in order to repay debts), among other measures.
Why do civil judgments appear on my credit report?
Your credit report is intended to be an account of your outstanding debts and your borrowing history. Civil judgments often result in a debt that lenders and other parties who are legally permitted to review your credit report use to get a more complete understanding of your financial situation.
How could civil judgments affect my credit score?
The inclusion of civil judgment information in a credit file will often cause a more noticeable drop in score than that of a similarly sized loan, for instance. Taking out a new loan signals that a consumer has voluntarily sought out credit and willingly agreed to pay that money back over time.
On the other hand, a judgment is likely perceived as a consequence of prior mistakes, rather than being indicative of financial management. At best, a judgment will be viewed as another obligation that could keep a potential borrower from repaying other items on their credit report, such as credit cards and loans.
Due to this distinction, civil judgments, like other reported public records, are generally considered to be harmful to credit scores and often have an immediate effect at the time of their addition.
Civil judgments affect your ability to maintain a healthy credit profile. Understanding the origins of these derogatory marks and grasping their implications are important steps in regaining your financial balance.