Pretty Crushed

[tfkallday]

Hi everyone.  I was dealing with a law firm collecting my midland account and just worked out settlement terms with them today and they said it already went to court as a judgement but that they will send a settlement letter to the courts.  I have been working so hard on my credit and am now completely crushed.  This was my second to last account to fix and my credit has been going up and up and now I will have a judgement.  I feel sick.  Can anyone help me with my next step I am crushed

[RobertEG]

A judgment is issued by a court, after trial on the plaintiff's assertion of both a debt and delinquency in its payment.

You are required to have been served notice of that proceeding, with the opportunity to show in court and make your defense.

If served proper notice and you dont show, they will obtain a default judgment.

A judgment should not just "pop-up."

I would begin by going to the courhouse and reviewing the record of the proceedings, with the view of determining how the record shows proper service of notice on you.

[tfkallday]

I had a paid in full settlement worked out.  I was to pay $800 which I did and then they were to auto deduct $572 out of my account in May.  They never did and I wasn't getting my mail because I am staying somewhere else.  It is completely my fault.  I just received all my mail and saw they gave me my papers in the beginning of October.  I feel absolutely sick and worthless

[tfkallday]

Any help is appreciated . I can't get over this.  I wanted to buy a house in six months.  All my plans are gone because of my own actions.  

[RobertEG]

Once you pay, the prevailing plaintiff is required to file notice of your satisfactin of the judgment with the court within a certain period.

That becomes part of the public record. While showing satisfaction of the judgment wont remove it from your CR or scoring, it at least overcomes any requirment a mortgage lendor might have to pay all delinquent debt. 

The plainiff is not required to report the judgment to the CRAs.  I would, as part of your payment negotiations, receive their agreement not to do so.

That may avoid appearance of the judgment in your credit report.

However, the CRAs do their own review of public records, and can, if they find the record, insert the judgment in your file without any reporting from the plaintiff.

Hard to tell if that will happen.  If they do pick it up, they wont delete it unless the judgment is vacated.

Some states do provide the ability to motion the judgment court once their judgment has been satisifed, requiesting they vacate their judgment as relief to the consumer.

It is discretionary, but if vacated, it is removed from the public record, and thus from scoring impact.  That option, if your state law permits, is something you can look into.

[Blake2891]

I had the same thing happen to me, but I paid the Judgement.  It got listed as satisfied on my credit report.  I applied for a mortgage and explained.  I am trying to get them off of my credit report.  They do a lot of illegal tactics.

[tfkallday]

Thanks for all your information- I live in NJ. I feel like the world is over.  I talked to them today and we agreed on a settlement but I haven't paid them yet.  I told them I would call tomorrrow with my information to pay them .  Should I tell them I will only pay them if they vacate?  Or be polite?

[tfkallday]

I also should state that I sent them an email before the judgement and they never responded. Then, when I was on the phone with the guy, he said " I see here you emailed us and we never responded"  .. "We have not been in contact with you, correct? "  I do not have this recorded, though.  The email was dated 9/25 that I sent and judgement was this month.  Does this give me any grounds to get it vacated

[sccredit]

I would attempt to get it vacated based on non-service (assuming you were not served) and then negotiate.  I know in CA they will normally vacate upon request within 60 days of judgment if no appearance was made by the defendant

[tfkallday]

What would non service be considered? Thanks