If a debt remains unsettled for too long you risk the creditor taking you to court to get a credit judgment. Credit judgments are a court order requiring payment on a contract or obligation. You can say it is the "ultimate validation" of a debt as a judge has usually analyzed documentation and ruled that the debt is in fact valid .Having credit judgments on your credit record can lower your credit worthiness and scores considerably. One of the other major drawbacks of having credit judgments is it can be almost impossible to get extensions of credit with unpaid credit judgments on your credit reports. This is especially true of a mortgage for a home since a credit judgment can attach itself to your real property.Removing credit judgments can be dealt with a few different ways: Check out the Statute of Limitations for Your State.Judgements will usually remain on your credit reports for 7 years; however they remain collectable for 20 years. Once the 20 year period is over however, it is pretty simple to get an extension if the judgement is open and not collected on already. Now, if the statute of limitations has been surpassed you can dispute the credit judgment as "obsolete" with the credit bureaus. There is a good chance this will remove credit judgments that are past the statute of limitations. Negotiating for DeletionAnother way that works to remove credit judgments is to consult with the creditor that the judgment is open with. You may be able to get them to dismiss the credit judgment by paying it in full. This is much better than just paying it off as the credit judgment will just be updated as "paid" and it will still show up on your credit reports. Filing a Motion to VacateI am not going to get into detail with this one. If this is the path you choose, you will need to do some research for court procedures in your area as they differ greatly. However, know that if the courts grant your vacate request, the credit judgment should be removed from your credit report immediately.
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If a debt remains unsettled for too long you risk the creditor taking you to court to get a credit judgment. Credit judgments are a court order requiring payment on a contract or obligation. You can say it is the "ultimate validation" of a debt as a judge has usually analyzed documentation and ruled
For more information on how to delete credit judgments, please visit my Lexington Law Firm review page, or call 1-800-258-0062 for a free credit counceltation.
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