Judgment Credit Report
Posted in Finance on 11/30/2010 02:52 am by
Shayne Sherman asked:
Many people are confused about the difference between judgments on credit reports and a lien, and on the methodology of clearing it up. A judgment against you is simply the result of you losing a case in court. Your creditor goes to court to get a judgment against you for the debt you may owe him. Your creditor takes you to court because there, a judgment can be recorded and enforced and the only other option would be to write off the debt or send it to collection and lose most of it to fees.
If recorded, judgments become matters of public record and if you have property, a title search will turn up items for public record. After a judgment, the creditor can file for discovery of your assets and the judge can order for the sale of your assets. This happens unless the creditor is happy with payments from you in which case they might agree to subordinate their lien position.
A judgment against you lowers your FICO score considerably and you need to remove a judgment from your credit report as a matter of urgency. Check statute of limitations (SOL) for collection judgment because yours may be expired. Also, get a debt negotiator to dismiss the judgment in exchange for money and make sure your negotiations with the judgment creditor are put in writing and are signed. Ensure that the form completed by the judgment creditor is filed in court and reported to credit bureaus. Lastly, you need to understand garnishment laws by state, exceptions, and judgment laws in your state and looks up previous judgment records and if you believe, you were sued in error. If that is the case, you will have to set on a procedure called “motion to vacate” a judgment because about 80% of judgments are awarded in error.
Mathew
Many people are confused about the difference between judgments on credit reports and a lien, and on the methodology of clearing it up. A judgment against you is simply the result of you losing a case in court. Your creditor goes to court to get a judgment against you for the debt you may owe him. Your creditor takes you to court because there, a judgment can be recorded and enforced and the only other option would be to write off the debt or send it to collection and lose most of it to fees.
If recorded, judgments become matters of public record and if you have property, a title search will turn up items for public record. After a judgment, the creditor can file for discovery of your assets and the judge can order for the sale of your assets. This happens unless the creditor is happy with payments from you in which case they might agree to subordinate their lien position.
A judgment against you lowers your FICO score considerably and you need to remove a judgment from your credit report as a matter of urgency. Check statute of limitations (SOL) for collection judgment because yours may be expired. Also, get a debt negotiator to dismiss the judgment in exchange for money and make sure your negotiations with the judgment creditor are put in writing and are signed. Ensure that the form completed by the judgment creditor is filed in court and reported to credit bureaus. Lastly, you need to understand garnishment laws by state, exceptions, and judgment laws in your state and looks up previous judgment records and if you believe, you were sued in error. If that is the case, you will have to set on a procedure called “motion to vacate” a judgment because about 80% of judgments are awarded in error.
Mathew