Dekrist - If I understand your correctly, you had an account in collections, you didn't pay it, and the creditor got a judgment against you. That means that the creditor sued you and you lost (possibly because you didn't file an answer and didn't show up in court).
If I've misunderstood, and you paid the collections agency before they got the judgment, then you need to contact the court to find out how to file a "motion to vacate judgment." You submit proof of your payment to show that the judge never should have granted the judgment against you. There is a time limit on filing the motion so make sure you look into this right away if that's what happened.
The court, not the creditor, reports the judgment to the credit bureaus as a "public record." Other examples of public records are bankruptcies, and state and federal tax liens. If you paid the judgment, then it should be reported by the court as "paid judgment." Dispute it with the credit bureaus if not.
Hope this helps!