Judgement?? Help!

[gutero]

So I took out a payday loan... don't judge me... I know it was stupid!  It was for $1,000.  It got charged off, and referred to an attorney.  I was served with a notice from the law firm saying contact them or they'd proceed with legal action.  So I called them... they said they're willing to accept a payment arrangment but it would still likely be reported as a type of judgment.  I'm sorry my details are vague, but it's not all clear to me.

So my question.. are there different kinds of judgments??  Once it's paid in full will it be removed from my credit report?

And YES I know it was stupid... it was over a year ago and the circumstances... well, they were bad enough that I needed a pay day loan.

[guiness56]

In order for them to get a judgment they have to file suit and you have to be served a summons. 

If you pay it before a suit is filed, they cannot file suit, as there is nothing to file for.  With that said, DO NOT sign anything.  They may try to have you sign a consent of judgment.  What that says and does is you agree to a judgment being against you. 

[kaymom]

If you can't afford to take care of the entire balance, you need to make arrangements with them. However, if you default on your arrangement that's when the judgement is filed against you and it will be reported to your CR.

[guiness56]

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@kaymom wrote:

If you can't afford to take care of the entire balance, you need to make arrangements with them. However, if you default on your arrangement that's when the judgement is filed against you and it will be reported to your CR.

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Not neccessarily.  Some of these attorneys will try to have you sign a consent to judgment which will automatically have a judgment against you without going to court.

By the attorney telling the OP some sort of judgment would happen anyway is not a good sign.

[kaymom]

You got a point, it all depends on the attorney. Either way, if the debt is valid, chances are actions can be taken.

[guiness56]

Most definitely they can be taken.  But, if it is paid before a suit is filed, there is no legitimacy for a suit.

I agree with the payment arrangements, just not signing away your rights.

[gutero]

That's exactly what they want me to do.....

They sent over a "Stipulated Judgment" that I'm to sign in order to move forward with payment arrangments.  

In this "stipulated judgments" there's a clause that says "Plaintiff covenants not to execute on this Judgment while Defendants are not in default".  

Does that mean they won't move forward with an actual judgment unless I default on payments?  Or is a "stipulated judgment" bad enough to show up on my credit report just the same?

[guiness56]

That is what that means yes.  As long as you are not in default and make payments they won't seek a judgment. 

I have seen where it happened anyway. 

But, for you to make arrangements you may need to sign and just never be late.  Is there anyway you could come up with the amount without payments?

[gutero]

Payments are my only option, unfortunately. So if I make timely payments and pay it off, they may or may not seek judgment. If I ignore (not that I would) they'd definitely seek judgment. And if I could pay it lump sum in full they'd almost definitely not seek judgment?

[tryingtohavebettercredit]

I did the same thing and learned the hard way as well. That was 5 years ago and it is still on my credit report. I recently found out that once it is paid you will get a satisfaction of judgement from the loan store and you have to bring it to the courthouse and have it stamped and they will update your credit report as satisfied., buit it will still remain on your credit for 7 years.