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If paid, the seven year exclusion period is not based on when they filed the action with the court, but rather on when the court entered the judgment itself.
If the debt remains unpaid, the judgment is extended to any later date of expiration of the statue of limitations on enforceability of the judgment.
I've read that they can also renew the judgement if it was for a large sum and you never paid/settled it, so it would be best to put new plans on hold until the judgement is resolved or else it will come back to haunt you. Applying for a mortgage could also give them reason to fight back harder to collect the debt.
Now that I understand how judgements work, I know how to plan to get rid of the debt. Thanks for your responses.
I would contact them immediately and make payment arrangements. They're gonna start garnishing wages and leving bank accounts at some point. I don't know too many companies that walk away from a $50k judgement. There's probably some collection agency SPing your reports once a week looking for any sign of available cash.
FL judgements:
How long can judgments appear on credit reports?
Unpaid, they can remain on your credit reports for seven years or the governing statute of limitations, whichever is longer. Once judgments are paid, they must be removed seven years after the date they were entered by the court.
How long can judgments be collected?
There is a specific time period for collecting judgments, and it varies by state. This “statute of limitations” is often 10-20 years long. In addition, in most states it can be renewed. For that reason alone, it’s best to try to avoid getting a judgment against you in the first place. And if it does happen, it’s best to try to resolve the debt.
Can interest accumulate on a judgment?
Yes. In most states, interest may be charged on a judgment, either at any rate spelled out in state law, or at the rate described in the contract you signed with the creditor. In addition, the judgment may include court costs, and attorney’s fees.
How are judgments collected?
One of the main reasons you want to try avoid getting a judgment against you is that creditors may have additional ways to collect once a judgment has been issued. Depending on your state’s laws, they may include going after your bank accounts or other property, or trying to garnish your wages.
But as the saying goes, “you can’t get blood from a stone.” As the National Consumer Law Center points out in its book, “Surviving Debt:”
Even if you lose a lawsuit, this does not mean you must repay the debt. If your family is in financial distress and cannot afford to repay its debts, a court judgment that you owe the money may not really change anything. If you do not have the money to pay, the court’s judgment that you owe the debt will not make payment anymore possible.
Hope this helps.
@Anonymous wrote:I would contact them immediately and make payment arrangements. They're gonna start garnishing wages and leving bank accounts at some point. I don't know too many companies that walk away from a $50k judgement. There's probably some collection agency SPing your reports once a week looking for any sign of available cash.
they can not garnish wages because DH is head of household (I'm a SAHM) and if needed we would file for that FL head of household exemption. The judgement is not against me, so they wouldn't pull my reports. DH is an AU on my accounts though.