Judgments on Your Credit Report

Judgments on Your Credit Report

Judgments on Your Credit Report

Judgments on Your Credit Report By The credit physician

If you have judgments on your credit report, you might be wondering how you can remove them, if you can remove them, and how they will affect your credit card score.

In this week's blog, we'll take a look at the ABC's of judgments.

What is a judgment?

A judgment is a court order that demands a debtor to repay a debt toa creditor. If a debtor cannot or refuses to pay the debt, the court may attach a judgment to a piece of real property such as a house or piece of land. These judgments are reported to the credit bureaus and they have a negative impact on your credit score. In addition to leaving a long-lasting mark on your credit report, you are also left with the responsibility of paying the original debt (plus interest and court fees), having it become a part of your public record, and risk the surfacing of liens and property loss.

Any debt that you are taken to court for can result in a judgment lien on your property. Until you satisfy the judgment, you will not be able to sell the property. In worst case scenarios, you could be forced to sell the property to satisfy the judgment. In any case, interest will accrue until the debt is paid in full.

How do judgments work?

Let's say that one day you decide to stop paying your credit card bill. About ninety days later, the bill will be turned over to a collection company that will attempt to collect the debt. If the collection company fails to collect the debt, the credit card company can decide to sue you. If the courts decide that you are at fault, and they will hold you responsible unless you have a valid reason for not paying the debt (maybe you do not owe this debt or it was a result of fraud), the courts will issue a judgment against you stating that you are responsible for paying the debt plus any accrued interest. The statute of limitations determines how long the creditor has to sue you. The length of time varies from state to state. Most states have statutes of limitations that are at least ten years. Usually, there is no "waiting it out." Most states can renew a claim against you, meaning they can come after you for years after you failed to pay a debt.

Obviously, judgments are not your friend!

POST COMMENT

Credit Score Increase - It Is Possible!! Easy Ways To Perform A Credit Fix No credit check loans-Relief from tedious procedure Rebuilding Your Credit After a Divorce Disability Tax Credits for Amyotrophic lateral sclerosis Bad credit loans avail larger funds to accomplish varied works Divorce and Your Personal Credit Instant bad credit loans quick monetary help for urgent use Bad credit loans: Good solution for poor credit people Car Loan For No Credit Will Help One and All To Have A Superb Credit Rating Bad Credit Personal Loans - Puts an End To Your Bad Credit Troubles Short Term Loans No Credit Check-A solution for bad creditors with untimely expenses No credit check loans- Applicable for losers in credit scores