Credit - Judgments, Part 1
A money judgment is really just a piece of paper-a court document that says someone owes someone money.
Having a judgment on your report can be a real showstopper, even with a substantial amount of good credit.
If you think a judgment is unwarranted because of extenuating circumstances, your first course of action is to dispute the item with the bureau by sending formal dispute letter and, if that fails, a demand letter.
If the bureau cannot verify that the judgment is legitimate within the reinvestigation time frame set forth by the FCRA, then the law requires that it be removed from your report.
You may or may not be aware of the circumstances surrounding the judgment, since it could have been awarded in absentia (e.
g.
, you were not present at the hearing or failed to respond to a lawsuit, so you lost by default).
In any case, when you begin disputing it with the bureaus, ask them to provide specific documentation to back up the legitimacy of the judgment, information you may find helpful when you are attempting to have it removed.
Which court is it in? What's the case number? Perhaps you don't have a copy of the judgment.
If not, get one from the court as soon as you can.
Unpaid Judgments Surely a judgment on which you still owe money will look worse on your credit file than one that has been paid.
The former is called an unsatisfied (unpaid) judgment, but it's not a cause for alarm.
Actually, the fact that you still owe money gives you leverage in negotiating the removal of the judgment.
If the bureau continues to report the judgment after you have disputed it twice, then your next course of action is to contact the plaintiff (the party that sued you, also known as the judgment-creditor) and negotiate a partial or full settlement.
Most people will take a partial payment, since they would rather have something than nothing.
Remember to be nice.
(As a last resort, explain that you wish to settle because the judgment is hurting you, and reason with the plaintiff: it will do him or her no good to have the derogatory information remain on your credit report once you both settle.
This is a last resort because you don't want to give the plaintiff any ammunition in your negotiations.
) Offer 20 percent of the judgment and work your way up in small bits from there.
Maybe you can get off with paying 25 to 50 percent! In return, the plaintiff agrees to a stipulation to your payment, wherein he or she "sets aside" the judgment in exchange for your cash.
Make sure you secure the deal in writing before you send any money.
In fact, if possible it's better to meet with the other party and have the documents signed at the same time money changes hands.
Having a judgment on your report can be a real showstopper, even with a substantial amount of good credit.
If you think a judgment is unwarranted because of extenuating circumstances, your first course of action is to dispute the item with the bureau by sending formal dispute letter and, if that fails, a demand letter.
If the bureau cannot verify that the judgment is legitimate within the reinvestigation time frame set forth by the FCRA, then the law requires that it be removed from your report.
You may or may not be aware of the circumstances surrounding the judgment, since it could have been awarded in absentia (e.
g.
, you were not present at the hearing or failed to respond to a lawsuit, so you lost by default).
In any case, when you begin disputing it with the bureaus, ask them to provide specific documentation to back up the legitimacy of the judgment, information you may find helpful when you are attempting to have it removed.
Which court is it in? What's the case number? Perhaps you don't have a copy of the judgment.
If not, get one from the court as soon as you can.
Unpaid Judgments Surely a judgment on which you still owe money will look worse on your credit file than one that has been paid.
The former is called an unsatisfied (unpaid) judgment, but it's not a cause for alarm.
Actually, the fact that you still owe money gives you leverage in negotiating the removal of the judgment.
If the bureau continues to report the judgment after you have disputed it twice, then your next course of action is to contact the plaintiff (the party that sued you, also known as the judgment-creditor) and negotiate a partial or full settlement.
Most people will take a partial payment, since they would rather have something than nothing.
Remember to be nice.
(As a last resort, explain that you wish to settle because the judgment is hurting you, and reason with the plaintiff: it will do him or her no good to have the derogatory information remain on your credit report once you both settle.
This is a last resort because you don't want to give the plaintiff any ammunition in your negotiations.
) Offer 20 percent of the judgment and work your way up in small bits from there.
Maybe you can get off with paying 25 to 50 percent! In return, the plaintiff agrees to a stipulation to your payment, wherein he or she "sets aside" the judgment in exchange for your cash.
Make sure you secure the deal in writing before you send any money.
In fact, if possible it's better to meet with the other party and have the documents signed at the same time money changes hands.
Source...