Judgment and CA question

[Anonymous]

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@taj_laneal wrote:

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

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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.

[Booner72]

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.

[taj_laneal]

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

[Anonymous]

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@taj_laneal wrote:

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

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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.