topic Re: Judgment and CA question in Rebuilding Your Credit

Judgment and CA question

Anonymous — Thu, 07 Jul 2011 15:35:38 GMT

Hello, all. I have a judgment that is not showing up on my CRs, but that was paid via wage garnishment. However, the CA is still showing the entire balance is still due. How do I go about getting this deleted or at least having my CR state that it is paid? I am looking to buy a house next year, and I want this taken care of as soon as possible.

Re: Judgment and CA question

Anonymous — Thu, 07 Jul 2011 15:40:51 GMT

i am definately no expert or anything, but what I would do, is send the CA a letter stating this is paid, and a copy of some proof that it was paid, then..gw it off your reports

Re: Judgment and CA question

Booner72 — Fri, 08 Jul 2011 01:18:13 GMT

I have a judgment that is not showing up on my CRs, but that was paid via wage garnishment. However, the CA is still showing the entire balance is still due. 

hi - i'm really confused. if it's not showing up on your credit reports, where are you reading that it is showing the balance is still due?

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 01:55:12 GMT

@Booner72 wrote:
I have a judgment that is not showing up on my CRs, but that was paid via wage garnishment. However, the CA is still showing the entire balance is still due. 

hi - i'm really confused. if it's not showing up on your credit reports, where are you reading that it is showing the balance is still due?

I think he means the bad debt tradeline is still reporting, but the judgment they obtained is not reporting.

My only concern would be that by disputing the incorrect data on the tradeline the CA could check their records and start reporting the judgment, too.

Re: Judgment and CA question

Booner72 — Fri, 08 Jul 2011 02:13:51 GMT

Yes I fully agree with that assumption.

If they do update, you will have both the negative TL AND the judgment. As it sits, you only have the one.

I suppose if it came down to it and you had to prove it was paid to get a loan, you would have to deal with it somehow or the other. For now, let time heal.

Good Luck.

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 02:25:24 GMT

Thanks for all the comments.

I learned from reading these boards that CAs don't report judgments. Companies troll public records and sell them to the CRAs. The judgment is already paid via wage garnishment. I'm not sure why a CRA would buy a judgment that is already paid, but maybe there is some benefit that I'm not aware of. As it stands now, the CA is reporting that I have a balance. If I dispute, and they report it as paid, at least I wouldn't have an unpaid collection on my CR. The damage has already been done with the collection being there in the first place. I'm just trying to do what I can so that I can be in a better position to buy a house next year.

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 02:49:04 GMT

@Anonymous wrote:
Thanks for all the comments.

I learned from reading these boards that CAs don't report judgments. Companies troll public records and sell them to the CRAs. The judgment is already paid via wage garnishment. I'm not sure why a CRA would buy a judgment that is already paid, but maybe there is some benefit that I'm not aware of. As it stands now, the CA is reporting that I have a balance. If I dispute, and they report it as paid, at least I wouldn't have an unpaid collection on my CR. The damage has already been done with the collection being there in the first place. I'm just trying to do what I can so that I can be in a better position to buy a house next year.

While true that CAs do not normally report judgments, the fact is that a creditor can report their judgment. There is always that risk. You have to decide if it is worth it or not.

Have you verified that the court clerk has marked the judgment as satisfied? If not entered as satisfied on the court clerk's judgment book, it is not paid.

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 02:45:47 GMT

Another thing is that I wasn't served. So, I may have grounds for getting the judgment vacated. Another question would be should I try to get the judgment vacated now, or wait to see if it shows up on my CR? The judgment was entered in November 2010.

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 02:50:38 GMT

@Anonymous wrote:
Another thing is that I wasn't served. So, I may have grounds for getting the judgment vacated. Another question would be should I try to get the judgment vacated now, or wait to see if it shows up on my CR? The judgment was entered in November 2010.

If the debt is still within the statute of limitations, they can sue you again -- and most likely will when they show up for the court hearing on your motion to vacate.

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 02:53:06 GMT

What would be their grounds for suing me again? The debt is paid?

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 02:56:37 GMT

@Anonymous wrote:
What would be their grounds for suing me again? The debt is paid?

Only you say the debt is paid. No judgment is paid -- ever -- unless the court has it marked as satisfied.

The only way the court clerk will mark the judgment as satisfied is if the judgment creditor files a Satisfaction of Judgment. Do you have a signed & notarized Satisfaction of Judgment from the judgment creditor? A General Release? Then even though you say it is paid -- and you may well be right -- it is not paid.

Re: Judgment and CA question

Booner72 — Fri, 08 Jul 2011 02:57:41 GMT

Hello again - I wasn't "served" with my judgment, either. But in order for me to not have my wages garnished (which I know you did), they had DH and I sign (via notary witness) an agreement - which ultimately turned around on me as being evidence that I was "served." I had no idea I could go to court and fight it, etc. So if they have something like that with your signature, they could say you were in effect, served.

Also, I realize that the courthouse holds the judgment. But since it's public record, anyone can turn it into the CRA's, and there it will sit for 7 long years.

I know you are in a pickle and just want this to go away. I know your angst. But if I could trade places w/ you, I would. If it was me, I would show the UW's that it is paid come mortgage time, and they would go ahead and approve my loan that way - because my credit score would be high enough to get to the underwriting phase.

Good Luck with whichever you decide.

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 02:59:11 GMT

So if the judgment is satisfied, what would be their reason for suing me again?

Re: Judgment and CA question

Anonymous — Fri, 08 Jul 2011 03:07:26 GMT

@Anonymous wrote:
So if the judgment is satisfied, what would be their reason for suing me again?

If the judgment has been recorded as satisfied by the court, then they cannot sue you on that judgment again. The chances that the CA would also report the judgment to the CRAs are slim. That is not to say, however, that it cannot end up on your CR via other means. While a judgment on your CR could effect your credit score, it is not in and of itself a deal-breaker when applying for a mortgage.

The key is to verify with the court that the judgment is marked as satisfied. I wish I had a dime for every judgment debtor who thought their judgment was paid because wage garnishment ultimately stopped. It is extremely common for garnishment to stop without having captured all attorney fees, court costs and statutory interest on the judgment withnobody the wiser. If the judgment creditor filed a Satisfaction of Judgment, you are in the clear. If they did not, start to worry.