How to Legally Remove A Judgment On A Credit Report
In simple terms, a credit report judgment is a court order demanding you to make good on a bad debt.
A credit judgment can lower your credit rating by as much as 250 points, destroying your credit report, indelibly marking you as someone with an untrustworthy credit history.
Seeking a judgment is a very Draconian approach to debt resolution that assumes the reason the debtor - you - is withholding loan repayment is bad faith.
In truth, the reason most Americans do not make good on what they've borrowed is that they've experienced setbacks which they did not anticipate.
The company they worked for has gone under, and they're out of a job.
Their own business which they'd nourished with capital and sweat equity became another victim of the Great Recession.
They became ill and their health insurance did not adequately cover their medical expenses.
The bills piled up, outstanding credit debts were sent to collection agencies.
While some bills were charged off, others ended up in the court, filed as default judgments.
You can stop the harassing phone calls by filing for bankruptcy.
But your credit has been irreparably damaged.
Or has it? There are ways to remove judgments from your credit reports.
Be advised, however, that it is a time consuming process.
Before you begin, you must obtain copies of your credit reports from the three largest credit bureaus, Experian, Equifax and TransUnion.
Next, many states have statutes of limitations for credit judgments, and while some states allow credit judgments to be renewed, some do not.
The credit bureau itself has 30 days from the time they first process the judgment to substantiate its accuracy by sending a request to the court for verification.
But the legal system moves slowly, and frequently it will take courts much longer than 30 days to respond to this request.
If a credit judgment has not been verified, then you can make a strong argument to credit bureaus for its deletion.
If the verification occurred in a timely manner, you can still negotiate with the judgment creditor to dismiss the judgment in exchange for a payment.
It need not be the amount of money you originally owed - and, in fact, in many ways is a better outcome for you than paying back the amount you originally owed: when a judgment is dismissed, it becomes legally void which means you can contest the assertion that you owed the money in the first place.
This will help repair your credit history far more effectively than discharging the debt in full.
A credit judgment can lower your credit rating by as much as 250 points, destroying your credit report, indelibly marking you as someone with an untrustworthy credit history.
Seeking a judgment is a very Draconian approach to debt resolution that assumes the reason the debtor - you - is withholding loan repayment is bad faith.
In truth, the reason most Americans do not make good on what they've borrowed is that they've experienced setbacks which they did not anticipate.
The company they worked for has gone under, and they're out of a job.
Their own business which they'd nourished with capital and sweat equity became another victim of the Great Recession.
They became ill and their health insurance did not adequately cover their medical expenses.
The bills piled up, outstanding credit debts were sent to collection agencies.
While some bills were charged off, others ended up in the court, filed as default judgments.
You can stop the harassing phone calls by filing for bankruptcy.
But your credit has been irreparably damaged.
Or has it? There are ways to remove judgments from your credit reports.
Be advised, however, that it is a time consuming process.
Before you begin, you must obtain copies of your credit reports from the three largest credit bureaus, Experian, Equifax and TransUnion.
Next, many states have statutes of limitations for credit judgments, and while some states allow credit judgments to be renewed, some do not.
The credit bureau itself has 30 days from the time they first process the judgment to substantiate its accuracy by sending a request to the court for verification.
But the legal system moves slowly, and frequently it will take courts much longer than 30 days to respond to this request.
If a credit judgment has not been verified, then you can make a strong argument to credit bureaus for its deletion.
If the verification occurred in a timely manner, you can still negotiate with the judgment creditor to dismiss the judgment in exchange for a payment.
It need not be the amount of money you originally owed - and, in fact, in many ways is a better outcome for you than paying back the amount you originally owed: when a judgment is dismissed, it becomes legally void which means you can contest the assertion that you owed the money in the first place.
This will help repair your credit history far more effectively than discharging the debt in full.
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