Judgement

[warrior1]

What is the name of your state?NJ
I had several CCs and I stopped making any payments since Aug 2003. Now things are better and I am trying to repair my credit. Half a dozen cc filed lawsuite and I was able to settle with most of them with either a reduced lump sum or a monthly payment. One of the cc got a judgement before I was even able to answer their Motion for Summary Judgement (when I received MSJ I should have 10 days to answer it, but due to some tricky dates on MSJ etc. judge entered the judgement against me before I can reply in 10 days). Judgement was for appx. 4500 and law firm is willing to accept appx 3000 to satify the judgement. In order to improve credit score, what is a better option ?

a. Send them a check for 3000 and they will mark it satisfied. Does judgement still stay on the Credit report ?

b. Pay them and then file for a Motion to vacate the judgement ? Is it possible and is any place I can find a sample format for it ?

c. If above two options will not help credit score in any way, then may be not pay at all and wait for 7 year for Judgement to disappear from credit report ?

Will really appreciate some help here.

[Ladynred]

a) As long as the judgment is public record, it will stay but may say 'satisfied' if you don't make sure they note it that way or file a letter of satisfaction with the court.

b) Once you pay them what they agree to, then you should make sure you get a letter of satisfaction to file with the court. You cannot vacate a 'satisfied' judgment - at that point is over already.

c) It may not drop off in 7 years ! Per the FCRA, judgments CAN stay on your reports for as long as they are valid and unpaid. That could be 10 years - or MORE if they renew it !

Negotiate a 'pay for delete' - they delete their footprints from your credit reports in return for getting paid. That will help your score a tad, but the original creditor's bad marks will still be there.

[warrior1]

Originally Posted by Ladynred

a) As long as the judgment is public record, it will stay but may say 'satisfied' if you don't make sure they note it that way or file a letter of satisfaction with the court.

b) Once you pay them what they agree to, then you should make sure you get a letter of satisfaction to file with the court. You cannot vacate a 'satisfied' judgment - at that point is over already.

c) It may not drop off in 7 years ! Per the FCRA, judgments CAN stay on your reports for as long as they are valid and unpaid. That could be 10 years - or MORE if they renew it !

Negotiate a 'pay for delete' - they delete their footprints from your credit reports in return for getting paid. That will help your score a tad, but the original creditor's bad marks will still be there.

Thank you. It was very helpful.