When you see that your credit report has judgment on it, don't despair. There are two steps that you can adopt to have the judgment removed as soon as possible and improve your credit score.
Definition of Judgment
But first, definitions are in order. A credit report judgment is simply a court order directing the individual to repay a debt. This is probably the most negative item that can appear in your credit report save for a filing of bankruptcy and conviction for a felony. Thus, you can expect your credit score to take a nosedive precisely because you are now considered a high credit risk.
Also, any mortgage lender will not provide for a new loan on your house until and unless your judgment is deleted from your credit report. And of course, you may have to pay the judgment amount before you can avail of the mortgage.
Removal of Judgment
Or is that true in all instances? Fortunately, no if and when you know how. You can actually have the judgment removed from your credit report even without paying for the amount so ordered to be paid. There are two scenarios that makes such a happy turn of events – at least, for you – possible.
First , you must look into the process by which whoever it is that filed that judgment against you employed to secure said court order. If and when you find that the law was not followed in any way, you can ask the courts to have the judgment lifted off your credit report. As the law on credit report judgments can be on the complicated side, it is often best to hire a lawyer with expertise in this regard.
Second , even when the lawsuit was properly filed by the plaintiff against your favor, you can always have the judgment lifted due to technicalities. There are many instances of said technicalities but the most common are the following:
* You did not show up for the court date.
* You were unable to respond to the court summons with proper paperwork on hand within the allotted time.
These instances of technicalities are only applicable if and when you can present sufficient justification for your inability to appear during the court date or respond to the court summons. The judge must agree with your justifications, of course.
Again, you may need a lawyer as the steps in this scenario involves court documents specifically a Motion and Declaration to Vacate Judgment and an Order to Show Cause, both of which are filled with legalese. If you so much as overlook one thing on these documents, your appeal for removal of judgment on a technicality will likewise be dismissed on a technicality. With the proper paperwork, the original plaintiff can then be served with court summons.
Two scenarios will happen. First, you can settle the matter out of court especially when the plaintiff is willing to do so, thanks to their violations of the Fair Debt Collection Practices Act. Second, you can go to court and still win under certain circumstances such as the plaintiff not showing up and / or unable to show proof against your request for dismissal.
And that is how you have judgment removed from your credit report! Just be sure to secure the necessary court documents to present to the credit bureaus to expedite the process.