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I am primarily concerned as I still have the judgment listed on my CR. Shouldn't they remove the judgment as I am now, in effect paying the original (plus some) debt?
I am trying desperately to clean up my credit.
Also, is there any thing I can do to dispute the amount of fee's and interest charges?
The original debt came from financial hardship, under-employment and a hostile business take-over (I'm certain I should have filed bankruptcy). And I have finally become employed, though only p/t and the garnishment is taking 20% of my income, making it difficult for me to arrange payments to my other debts as well.
Thank you for your input and assistance!
@keapdx wrote:I am primarily concerned as I still have the judgment listed on my CR. Shouldn't they remove the judgment as I am now, in effect paying the original (plus some) debt?
I am trying desperately to clean up my credit.
Also, is there any thing I can do to dispute the amount of fee's and interest charges?
The original debt came from financial hardship, under-employment and a hostile business take-over (I'm certain I should have filed bankruptcy). And I have finally become employed, though only p/t and the garnishment is taking 20% of my income, making it difficult for me to arrange payments to my other debts as well.
Thank you for your input and assistance!
Unfortunately, a judgment has to be removed from your credit report only when the reporting period has passed (7 years in most instances) or when the judgment is vacated by the court. Paying on or even paying off the judgment does not mean it must be removed.
Fees and interest should have been set in the terms of the judgment and / or by state law. A general rule of thumb is that judgments incur 10% simple interest in many states. I'm not sure what fees you refer to. The judgment creditor's legal fees should have been included in the judgment as well as any mandatory court fees. Depending on your state's laws, fees added by a judgment creditor after the judgment are probably not binding.
Thank you so much for the information. Now I'm wondering who/where I can go to for assistance with this?
@keapdx wrote:Thank you so much for the information. Now I'm wondering who/where I can go to for assistance with this?
You should be able to get a copy of the judgment from the court clerk's office. Statutory interest can usually be found in your state's civil procedure law.
I would probably consult a local attorney to see what you can do to eliminate or at least minimize this issue.
Keep in mind that you have two totally different issues running here. The first being credit reporting, and second being repayment of the debt.
Credit reporting for civil judgments is governed by FCRA 605(a)(2). which mandates dropping of continued reporting of the judgment in your CR after 7 years from the date of the judgment, regardless of its subsequent payment, or non-payment status.
Dropping of any derog reporting in your CR has nothing to do with obligation to pay a prior debt. If you have both a civil judgment, followed by wage garnishment, those are legal matters that are unrelated to your CR. To negotiate on those, you should obtain legal counsel.