Removing Judgments From Your Credit Report

September 24, 2009 – 8:30 pm | by admin

Whenever a debt remains uncollected, your creditor could take you to court. If you were found guilty, then a judgment will be issued in favor of your creditor. You will be given another 30 days to file an appeal although it would be a waste of time, if the debt is really your responsibility.

Judgments like collection accounts, charge-offs and bankruptcies can lower your credit score significantly. A ruined credit report will mean difficulties in proving your financial credibility. Even as something as simple as credit card application can be rejected if you are not careful on how you handle all your credit. Removing judgments can actually be done in three ways.

Check Out the SOL

You should determine the SOL or statute of limitations for judgments in your state. On the average, these judgments usually stay in your credit report for seven years but its statute of limitations usually last up to 20 years. This is also the length of time that your creditors will have to try and collect the debt you owe them. If the SOL has expired, the judgment should be removed if there were no renewals filed by the creditor. Any dispute should be reported immediately so that your credit history is updated and corrected.

Another way you can remove the judgment from your report is by negotiating with your creditors. In exchange for the payment of the debt, your creditor will have to request the dismissal of the judgment. The judgment entry will be removed from it completely. Normally, when debts are paid after a judgment has been issued, a rating of “paid judgment” is entered. But if you negotiate removal then it would work wonders for your credit score. Of course, you have to document such agreement so that you will have something to show the credit bureau in case your rating did not change.

Lastly, you can remove a judgment by filing for a motion to vacate. In most cases, this motion is filed if the creditor sued you wrongly. If the court vacates the judgment then it will be removed from your credit report and you are not even obligated to pay your debts.

Learning about judgments is very important if you want to have a fighting chance of removing it from your report and protecting your credit score.

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  1. One Response to “Removing Judgments From Your Credit Report”

  2. By Michelle on Sep 28, 2009 | Reply

    Thanks for the tips. A lot of consumers trying to get out of debt are unsure of where to begin; this provides some really useful information.

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