When some judgment creditor uses a court to get a money judgment against you, the judgment may appear on your credit report as a negative item. A judgment sometimes pops up after the case. Judgments have two purposes, both to record it in the public records, and to enforce it.
This is one of my many judgment-related: I'm the Judgment referral expert, not an attorney. This article is only my opinion based on my long term experiences, please hire an attorney when you require legal advice.
A judgment can originate from many types of reasons. Some categories are vehicle, real estate, small claims, fraud, bankruptcy, family support, state, federal, credit cards, banks, medical-related debts, etc.
An unpaid judgment can reduce your credit FICO score. It's a good idea to try to not get judgments and to remove them from of your credit records when you are able. Depending on what kind of a judgment it is, your credit scores might get lowered.
A judgment creditor might try to later recover your judgment, and pay the sheriff to seize and then auction off your assets. Your judgment creditor might simply give up on the loss. Or perhaps, the creditor may turn over their judgment to an enforcement expert, or a lawyer, or perhaps some collection company; and then lose approximately half of whatever gets possibly collected.
Judgments are a matter of public record, that may be discovered using a quick search of the public records. A judgment may appear on a public record area of the credit reports. A judgment may also include court penalties and costs, and occasionally lawyer expenses, not just what you owe.
Using your court, a judgment creditor might subpoena records for your assets, you, and companies or people who know of (or who possess) some of your assets. If income or assets sources are discovered, your judgment creditor might have the sheriff seize your assets to repay what is owed.
Judgments showing on your credit report may become problematic, if you're attempting to arrange for a property loan on your home. A mortgage underwriter will then look at the circumstances and determine whether that judgment is only a red herring, and then look at your credit long term record. In certain places, when you purchase your home and then later get forced to sell the home to repay some judgment creditor, the property lender may lose their shirt on the loan.
Unpaid judgments may keep haunting your credit report for a minimum of 7 years after the date of its court entry. In certain cases limitation laws will cause it to be removed from credit reports before the 7 years.
An unpaid judgment could stay on credit reports nearly indefinitely, different than satisfied judgments which drop off relatively quickly. To boost your credit scores, pay off your judgments.
If you've got a judgment against you, satisfying it will one day cause it to be removed from your credit reports. After satisfying it, its called a paid judgment. You might have to mail the three big credit agencies a copy of your court-entered judgment satisfaction.
Its usually a good idea to try to settle your judgments. Keep in mind that the majority of judgment creditors don't get even a dollar back for their judgments. Unless the judgment creditor is willing to spend money and time and knows the laws; to get an opportunity to collect a dime, they'll have to give up around 1/2 of whatever is collected. Because of that reason, consider beginning your negotiation at forty-fifty of the amount that is owed.
When your judgment creditor is agreeable to your negotiations, you might succeed in settling your judgment for less than the total due. When it's an old judgment, the creditor might be very happy you contacted them and that they will finally be getting some money. About half the judgment creditors agree that 1/2 of some money payment is much better than one hundred percent of no payment.
When the total you owe is really large, you might decide to hire a lawyer to settle the judgment with the creditor. Often lawyers will be able to negotiate a settlement for less, than what you would have negotiated by yourself.
Judgments have an effect on one's credit report, and also will have an effect your chances to borrow money. The bottom line is, settle or pay off your judgments if you can.
Mark Shapiro - Judgment Broker - http://www.JudgmentReferral.com - where Judgments go and are quickly Collected!