Judgments- What You Need To Know About Them.

How Do Judgments End Up on Credit Reports?

If you are sued in court and the court or the jury rules against you then a judgment is filed in the adverse party’s favor. The judgment is filed against you by the court, not by the party who initially sued you. Once a judgment is filed against you it may not be long before it finds its way onto your credit reports.

However, the way judgments end up on credit reports is quite a bit different than the way in which other accounts find their way onto your credit reports.

Most of accounts which end up on a consumer’s credit report – i.e. mortgages, credit cards, collection accounts, etc. – are reported to the credit bureau by lenders or collection agencies, aka “data furnishers.”

Courthouses and court clerks are not data furnishers. They do not report information about judgments (or any other public record) to the credit bureaus. Instead, the credit bureaus proactively seek out information regarding judgments using public record vendors like PACER and LexisNexis.

Once a credit bureau has acquired information about a newly filed judgment they will include the judgment on the consumer’s credit file.

Most of judgments can remain on a consumer’s credit report for up to 7 years from the date the judgment is filed by the court. Unsatisfied or unpaid judgments are no exception to the 7-year rule.

An outstanding judgment will need to be satisfied in order to qualify for a mortgage or small business loan. When attempting to pay these type of debts, realize you are dealing with a Law Firm that can seize assets, banks accounts or even wages. Most can be negotiated, but you need to understand how they operate and how to approach. 

We have settled over 5 million dollars worth of judgments. We have the experience and know how to either coach you to do it yourself or you can hire us. Don't take judgments lightly- they can have a dramatic affect on your credit, assets and financial well being.