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How Long Does a Judgment Stay on Your Credit Report?

Dena Standley | May 31, 2024

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: A judgment on your credit report may prevent you from getting a new line of credit for months or years. However, settling your debt with SoloSettle can help improve your borrowing possibilities.

Summary: A judgment on your credit report may prevent you from getting a new line of credit for months or years. However, settling your debt with SoloSettle can help improve your borrowing possibilities.

A judgment stays on your credit report for at least seven years. Some bad debts, such as tax liens and bankruptcy, go up to 10 years, while Perkins student loans stay until you pay the debt in full. Whatever type of judgment you may be facing, the financial repercussions can be long-lasting and severe.

It is better to have a satisfied judgment entry, meaning you paid the entire debt or settled it for less than you owed. A satisfied judgment will improve your creditworthiness, but avoiding a judgment is better when possible. This article will explore actions to take after receiving a judgment entry and how to prevent it from happening again.

Settle your debt to avoid a judgment.

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What are judgments on consumer credit reports?

A judgment on your credit report means that you have an outstanding debt and you failed to keep up with the payments, causing the creditor to take legal action against you. When it appears on your credit report, other lenders will be reluctant to lend you their money—thinking you may also fail to pay.

However, the type of judgment entered also determines the degree to which the lender may consider giving you a new line of credit. The following table shows the various types of judgments that you are likely to see on a consumer credit report.

Types of Judgment and their Meaninig
Judgment Meaning
Unsatisfied Debt remains unpaid
Satisfied Debt paid in full or settled
Vacated Debt dismissed after an appeal
Refiled or renewed The creditor is attempting to collect from you again

The federal Fair Credit Reporting Act safeguards consumers from having inaccurate judgment entries on their credit reports. It also ensures the credit bureaus remove the judgment entry immediately after the period ends.

How does a judgment hurt your credit report after you clear the debt?

Unfortunately, even if you clear the debt, the type of judgment entered remains on your credit report for the specified period. However, doing nothing about the judgment since it is already on your credit report damages your creditworthiness and can substantially lower your credit score. Paying off or settling the debt shows the lender that you still took responsibility for the debt regardless of the extreme measures the previous creditor took. The following video shows you how to settle your debt for good.

How to remove an inaccurate judgment on your credit report

Sometimes, consumers ignore the creditor’s attempts to collect a debt until they receive a wage garnishment notice or see a judgment entry on their credit report. Even at this point, you can take the following steps if the judgment was inaccurate:

  1. Send a Debt Validation Letter to obtain the debt details and the original creditor's information. This step will help in building your case.
  2. Write a detailed dispute letter to the three credit bureaus explaining why the debt is inaccurate or not yours. Attach any documents, invoices, or receipts that prove your case. The credit reporting agencies should conduct an investigation and remove the information if it’s not verified.
  3. File a motion to vacate the judgment if the creditor won by a default judgment. You must explain why you did not respond to the creditor's appeal to pay. The court may give you another chance to explain why you shouldn’t pay the debt as it is.
  4. Appeal the judgment if you appeared in court and still lost the case. Ensure you have a strong case.

Removing a judgment from a credit report can be challenging, especially if you lack sufficient evidence that the debt does not belong to you or that the judgment was entered unfairly. If removing the judgment is unsuccessful, consider settling the debt for less than you owe.

What to do when you have a court judgment on your credit report

Addressing the judgment entry is the best way to rebuild your credit history and score. Before you attempt to make any payments, you must review the judgment to ensure the debt entry is accurate, the creditor followed the correct legal procedures, and the debt hasn't passed the statute of limitations on debt in your state. Once you've verified the information is valid, you have several options:

  • Abide by the court order that directs the creditor on how they will get their money. For instance, by wage garnishment, putting a lien on your property, accessing your bank account, selling your assets, or putting a lien on your property.
  • Approach the creditor and ask for a new payment plan, assuring them you will not violate your agreement.
  • Pay the entire debt at once, preventing them from using the court measures.
  • Settling the debt for less than you owe. Some creditors accept settling because recovering their money using court-ordered options can be time-consuming and too involving. They may also worry that you may declare bankruptcy, meaning they may not get their money.

As you take these steps, you can rebuild your creditworthiness by paying your other debts on time and ensuring your credit utilization is low. Keep checking your credit report to ensure the credit bureaus update the information.

Strategies to prevent a judgment on your credit report

A judgment is among the worst entries a consumer can have on their credit report. It is better to take all measures to prevent getting to this point. Use these strategies at different stages of the collection process to avoid being in this situation:

  • Pay your agreed monthly debt amount without fail. If you are experiencing challenges, talk to the creditor to adjust the repayment plan to your situation.
  • If debt collectors keep contacting you, stop the calls by sending a Debt Validation Letter asking them to verify the debt is yours.
  • If the creditor enters an inaccurate debt on your credit report, dispute it with the three credit bureaus.
  • Upon receiving a debt collection lawsuit, respond to it using SoloSuit’s Answer. You will be guided on how to write the responses and increase your chances of winning the case.
  • If the matter gets to court, do not fail to appear and explain your situation. This step will prevent the debt collector from getting a default judgment.
  • If you cannot pay the debt in full due to financial challenges, consider settling it.

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