If you default on your debt and don’t try to pay it back to the creditor (or collection agency), they can take you to court. If the court finds in your favor, it enters a judgment against you. As a collection, it is a negative blow to your credit.
The type of judgment filed makes a big difference in how you handle it and how it affects your credit.
If you pay the debt in full or as agreed, you have complied with the judgment. Once the agreement is honored or forced to comply with a wage garnishment, the creditor issues a “satisfaction judgment” that he files with the court. If the creditor does not file it, you can file it.
If you have not yet “met” the debt, you are dissatisfied. This causes the most damage to your credit report. Future creditors view this unfavorably because they know that you have a history of default and are not up to date on your debts.
Judgments you appealed and won are vacated or void. If you’re lucky enough to have the decision reversed and, in your favor, the credit bureaus must remove the judgment from your credit report once you supply proof of the court order.
All states have a statute of limitations, but they vary wildly from 6 to 20 years. Some states also allow creditors to renew or re-file a judgment.
In other words, once the statute of limitations removes the debt, the creditor can resubmit the judgment, keeping it alive for many years until it is finally paid (or surrendered).
How do you know if you have a judgment against you?
In the past, you would know if you had a judgment against you by looking at your credit report.
Today that is not an infallible way. Instead, you should look for signs of a judgment, including:
- Your salary is garnished
- Your bank account is frozen
- Receive a phone call from a collection attorney
- However, the ideal would be for you to know the trial before these events. You must receive advance notice of the lawsuit so that you can defend yourself in court.
However, because our system is not foolproof, there is a chance that the notice has been leaked, so you may need to do your due diligence to find out.
How to clear a bug (4 easy ways)
If you find a fault on your credit report, here are 4 easy ways to remove it:
1. Request a judicial validation
Any inaccurate information on your credit report must be removed in accordance with the Fair Credit Reporting Act. If a court cannot validate your judgment, it is inaccurate information and must be removed by the credit bureau.
To obtain judicial validation, send a written request to the court that issued the judgment. Include your identifying information and court case number.
Send your letter by certified mail so you can trace it. If the court does not or cannot validate the case, write to the credit reporting agencies and ask them to remove the information.
2.Make an appeal
If you file an appeal, the court must decide whether to reverse the decision. If they do, the court can vacate the judgment, allowing you to remove it from your credit report.
Appeals are not always successful, but sometimes creditors do not come forward, allowing the court to reverse the original decision without issue.
3. Dispute with the three credit bureaus.
You have the right to dispute any inaccurate information on your credit report. This includes even the smallest detail of a trial.
Take a close look at dates, spelling of names, dollar amounts, and payment dates. If something is not right, appeal the information to the credit reporting agency (check all 3) and ask them to remove it from your credit report.
The credit bureaus have 30 days to validate your concern. If they cannot prove otherwise or do not attempt to do so, they must remove the judgment from your credit report.
4. Pay and wait for it to drop
If nothing else works, pay the fault and wait. Depending on where you live, it may fall off as soon as you satisfy.
Otherwise, you will have to wait for the statute of limitations, which on average is 7 years, to expire.
Can you remove a judgment from your credit report?
Whether or not a judgment can be removed from your credit report depends on the circumstances. If you cannot prove inaccurate information and the court validates and does not vacate the judgment, your best option to expunge a judgment is to comply with it and wait for the creditor to remove it from your credit report.
But if you want to increase your chances and really save your credit score, consider hiring a credit repair company. They bring years of experience and know the credit industry like the back of their hand.
Hire Chireo Credit Restoration Services to help remove your judgements, late payments, and collections. Sign up now!