How to resolve a judgement?

[Anonymous]

Hi,  I have a judgement that was filed in Feb 2009 over $600.

I'm looking for advice on what to do about it.  Pay it?  Dispute it?  Leave it?  Talk to a credit repair agency?  How do even do any of these things?

I can afford to pay for it now, but I'm concerned that if I do anything, it may not improve my score and may even make it worse. 

I spent hours looking for answers online and eventually found these forums.  Seems like the best place for honest answers

Other info to consider:

This was over unpaid H.O.A. fees around the time of my foreclosure (Fall 2008).

Judgement filed in VA in 2009, I moved to NC in 2006

I want my score to go up if possible, and definitely not down

I'd like to be eligible for a home loan again sometime soon and I think an unsettled judgement alone disqualifies you

Any advice or instructions would be greatly appreciated

[bruiseviolet]

My recommendations from my own expierience:

(1) Get copies of the court paperwork.  Make sure there is nothing wrong that would allow you to have it vacated (ie served properly etc..)

If there is -  then file a motion to have it vacated.

if there is not-  then you have a few options:

• Want it off your credit report, but not vacated?  Dispute ONLINE with the CRA's-  they will validate it- then send them a MOV (method of validation) and then chances are- they will delete it.  =)  While this removes from your credit report- it doesn't necessarily solve the issue-  when you get a house they will still find it- and will need to pay it-  they can still garnish wages etc...  
• If they have legally proven you owe them the money-  then I would DO IT IN WRITING but send them a letter and offer a settlement amount in exchange for them saying it's been "satisfied".  It will show 'satisfied" on your credit report-  so you will be able to get a mortgage/loan etc..   Then you could always try the above method to get it removed with the MOV letter etc...  THAT would bring your score up.  Paying it won't bring your score up- having it removed will.  But just removing a judgement from CRA's doesnt make the judgement go away- the only way to do that is to have it "settled" or have it vacated.

best of luck =)

[Anonymous]

Sorry, I'm a little confused by what you're saying.  I'm a complete noob here...

I have no problem paying it and I do want it removed completely if that's possible.  The problem is this is something from a few years ago and I'm not getting bills in the mail or anything.  So first I have to figure out how to pay them?  Then if I succeed in paying it off, how could I guarantee it would be removed?

Would it be better to have a lawyer handle this for me?  I have no idea what I'm doing or how this works.

[RobertEG]

What would be the basis for disputing the accuracy of reporting that is based on a court determination of its accuracy?

I dont see a basis for a proper dispute, unless the court proceeding was faulty. 

If the assertion is one of a faulty judgement, they I would follow the suggestion to motion the court to have it vacated based on improper service, etc.

[Anonymous]

Thanks for the replies.  Sorry but I'm having trouble understanding what you guys are saying.

All I know is I need this judgement off my report.  It was legit so I don't think it can be removed for any other reason than me paying it off.  But I think paying it off will actually renew activity on it and make it show up for another 7 years instead of another 4.

I'm looking for advice on getting it paid, settled and cleared.

[bruiseviolet]

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@Anonymous wrote:

Sorry, I'm a little confused by what you're saying.  I'm a complete noob here...

I have no problem paying it and I do want it removed completely if that's possible.  The problem is this is something from a few years ago and I'm not getting bills in the mail or anything.  So first I have to figure out how to pay them?  Then if I succeed in paying it off, how could I guarantee it would be removed?

Would it be better to have a lawyer handle this for me?  I have no idea what I'm doing or how this works.

---

Ok here are the choices with judgements:

Option 1:  Pay the judgement- so it is marked "satisfied"  It will remain on your report for 10 years- but will at least show satisfied so you can get a mortgage/loans etc.

Option 2:  Dispute it- to have it vacated.  which means you don't owe the money, AND it is removed from your credit reports.

[bruiseviolet]

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@Anonymous wrote:

Thanks for the replies.  Sorry but I'm having trouble understanding what you guys are saying.

All I know is I need this judgement off my report.  It was legit so I don't think it can be removed for any other reason than me paying it off.  But I think paying it off will actually renew activity on it and make it show up for another 7 years instead of another 4.

I'm looking for advice on getting it paid, settled and cleared.

---

How do you know it's "legit"?  Did the original creditor sue you?  Were you properly served the paperwork?  are they within the statue of limitations of your state to collect the debt?  Is it a collection agency?  Can they prove that you owe THEM the debt?  Are they liscensed to collect in your state?

Don't just assume it's "Legit".  If you want it off your report- you need to try adn fight it - which is where you need to find something WRONG that you can prove you don't legally owe them the debt.

If you just want it gone (which is what I am gathering)-  then your best bet- is to contact the Plaintiff- and offer to pay the full amount or a settlement amount if they agree to mark it as satisfied (that pertains to a settlement offer).  It will go on record as Satisfied-  it will still appear on your credit report- but will show that you paid it and satisfied the judgement.

[bruiseviolet]

ie-  pay in full:

Step 1:  Contact the Plaintiff and get in writing the total amount due

Step 2:  Send them a money order from your bank for the full amount-  along with something saying your account number and what you are sending it for etc...  Ie-  "This is to satisfy Judgement #  blah blah"  MAKE COPIES adn send certified mail- so you have proof you sent it.

pay partial

Step 1:  Send the Plaintiff a letter stating you are unable to pay the full amount (and if you aren't working or whatever put that in there- basically you want to show them that they wont be able to garnish wages or bank accounts or whatever if you can) and if they would consider the judgement satisfied you can send them a one time payment of $XXX.XX  Explain to them that you need to hear back in writing that they agree to those terms.  

Step 2:  Wait to receive the letter back- if they agree to XXX amount (which they probably will) make sure their letter back states that they will consider it SATISFIED for that amount.  If it doesn't say they will consider it satisfied- then they could still garnish wages etc for the difference in amount- 

Step 3:  Follow Step 2 from above- omitting full amount for agreed settlement amount

Final Step for all:

MAkE SuRE IT is reporting on your reports as SATISFIED =)  

[aot2009]

What basis is it you have for it to be vacated? Were you served or not with the lawsuit?

A vacate is basically saying to dismiss the original lawsuit that was filed. When a lawsuit is vacated it is also stamped VOID so it would be removed from your credit reports.

If you do a vacate the original lawyer can proceed to sue you again and at that moment you can pay the judgement in full before it goes back on your credit report or fight it with your own lawyer to prevent it from being a judgement.

If you plan on vacating then you better have a good reason as to why you think the lawsuit should be vacated to begin with.

Reasons like:

  I was not properly served and lived in XYZ state.

  You had a medical issue that prevented you from showing or responding to the courts.

  The collection agency never responded to my letter on X date.

  etc...

Reasons you WON'T get it properly vacated:

  I don't feel I owe the judgement

  I want to just get this removed off my report cause it's hurting my credit

Hope that explains the details for you.

[aot2009]

FYI....If you pay the judgement in full you will NOT be able to vacate it later.