Civil Judgement

[Anonymous]

Will an unpaid civil judgement drop off after 7yrs?

[Anonymous]

IF it is unpaid, it is considered 'negative information' and will come off after 7 years;  However, that does not mean they can't still collect on it (check the SOL for judgements in your state - many are 10 years or more and are re-newable).

I may be wrong but a paid judgement will only stay on the original 7 years - only tax liens re-set with payment as far as I know

[ECHOBOI4U]

You are right Lady_Scarlet.  The judgement public record reporting SOL will NOT reset on the date it is paid, but the clock starts 7 years from the when the judge orders the judgement to be paid.  I have one from Feb 2003 that I paid in May of 2006 that I confirmed will fall of all 3 reports on Feb 2010 by calling the three CRAs.  If it is not paid within the 7 years, the OC can refile and get it extended under a new judgement case number and filed back on your reports.  Judgements are sticky areas that should always be paid to help your FICO scores in the long run.  Someone filing a judgement means business.  I spent 3 years learning the FCRA, FACTACT, collection laws, SOLs and court laws to be prepared when I had to begin my full ccredit rehab.  Hate to let the agencies and gov't try to pull one over on me.  Hope this helps some. 

[Anonymous]

Sorry, I mis-spoke.  The 7-year period for civil judgments starts on date of entry.  It may be longer than 7 years if the SOL is longer.

[7878]

My husband has two unpaid judgements entered by attorneys representing collection agencies.  We live in Michigan.  The SOL here is 7 years.

One of them is due to drop off in March 2010 (this month).  He  just got a threatening letter from the attorney representing the collection agency saying it can be renewed.  If it is beyond the SOL, can it be renewed? 

[JoeBJay20]

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@7878 wrote:

My husband has two unpaid judgements entered by attorneys representing collection agencies.  We live in Michigan.  The SOL here is 7 years.

One of them is due to drop off in March 2010 (this month).  He  just got a threatening letter from the attorney representing the collection agency saying it can be renewed.  If it is beyond the SOL, can it be renewed? 

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There are a few isssues here.  Once you get a judgement, the SOL as you think of it no longer applies. Depending on the state, some judgements can be renewed multiple times, meaning that the judgement truly has an infinite SOL.  But if the judgement actually expires (7 years typically), it's virtually impossible to get it renewed.

[Bocklin]

Along these same lines, what happens if you have a judgement issued in one state, then it falls off after 7 years, but in that time you move to a different state. Before the 10 year mark you have changed states, and are now beyond the SOL for the collection of the debt, right? Can they actually renew a judgement in a state where you don't actually reside?

[Anonymous]

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@Bocklin wrote:

Along these same lines, what happens if you have a judgement issued in one state, then it falls off after 7 years, but in that time you move to a different state. Before the 10 year mark you have changed states, and are now beyond the SOL for the collection of the debt, right? Can they actually renew a judgement in a state where you don't actually reside?

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First of all, there is a certain period of time after which public records cannot normally appear on your credit report.  However, let's say for the sake of argument that it is 7 years and the judgment falls off your credit report at the 7-year mark.  Let's also say that the statute of limitations to collect on a judgment is, say, 10 years.  After the 7-year mark when the judgment falls off your credit report and if the judgment creditor renews the judgment, that judgment can then go right back on your credit report for another 7 years as the renewal is often considered a new judgment in many states.  That seldom happens, mind you, but it is possible and perfectly legal.

For your second question, the short answer is: Yes, they can renew a judgment no matter where you live.  Unlike obtaining a judgment for the first time, in the vast majority of states judgment renewal is not an adversarial proceeding and there is no requirement that the judgment debtor be served or otherwise notified.  Renewing a judgment is more akin to an administrative process in that aspect.

The good news is that statistically speaking few judgment creditors go to the trouble (or fail to remember) to renew their judgments. 

YMMV