November 10, 2016
Judgment on your Credit Report? Top 5 Ways to Resolve Them
Owing money that you cannot pay back is scary thing. This can cast a shadow over many parts of life, from finding a job to applying for a car loan. But, what may be even worse is finding out that you have already been sued for debt and didn’t even know about it. If a creditor or collection agency has sued you then that results in a money judgment. This means that a court has ruled against you and your debt is a matter of public record.
A Judgment on your Credit History with loan defaults and repossessions is one of the biggest negative hits to your credit score. FICO score considers these judgments as negative, whether it is paid or unpaid. And, once the judgment is satisfied the status will be updated on your report to show that it has been satisfied or settled, but it will not be deleted immediately. So, you could easily judge why removal of judgment from credit history is pretty big deal.
Here are five ways to deal with a judgment:
- Fight back the decision: Most debt judgment are not available to consumers. Often these one-sided default judgment can be erased, giving the debtor another chance to fight the charges. The creditors case may even crumble in court, if it lacks document. However, trying to handle it yourself is bit tricky. Get in touch with experts, if you believe that you are victim of improper service.
- Pay it off or settle it: One of the main things people will do to get a judgment taken off from their credit report is pay it. Either full or partial, pay your debt to owe a part of negotiated settlement. A settlement in ready funds is a bird in the hand. Make sure the creditor agrees with “Satisfaction of Judgment” when you pay or settle down the agreed amount.
- Remove the judgment from credit score: Remove a judgment from credit report and watch a significant increment in credit score. File a motion to have judgment vacated based on technicality errors in the complaint or the judgment moved to another state, or the collection agency did not validate the debt. You could also file motion judgment vacated on the basis of discrepancies in the notice.
- Stay judgment proof: All legal protections exempt collection charges on people with fewer assets and least income. However, it does not mean ignorance of judgment. It’s your job to check that property, your belongings and wages completely protected from seizure by a complex web of state and federal exemptions. You need to take culinary steps to head off wrongful collection attempts, before it takes away everything.
Summary: Top 5 Ways to Resolve a Judgment on your Credit Report
Deal with the judgment in an effective manner. As judgment could almost have negative effect on your FICO score. Reach out a company that works on judgment settlement and see if there is an alternative that might work.