The short answers is, yes, you should absolutely pay a judgment. There is an exception, though, if you feel that a “Motion to Vacate” is applicable. If your judgment is vacated due to a Motion to Vacate, you will not be legally obligated to pay the debt. However, with regard to the contract, you may still be liable.
If you would prefer to save yourself the trouble of going to court, you can try to settle out of court. If you are successful in negotiating a settlement, your credit report will be saved from the judgment entry, which will be a huge plus. You should make sure during your negotiations that all negative entries associated with the judgment will be erased from your credit report and this should be included in a written agreement related to your negotiations. It is normally more beneficial if you are able to negotiate a settlement with your creditor than going to court and having a judge determine the outcome, which often includes asset seizure and wage garnishment.
If you are unable to reach a settlement with your creditor, do not be intimidated by a court appearance! By planning and preparing yourself, you can go forward confidently. It would be smart to use the services of a knowledgeable and seasoned consumer attorney if you hope to have the judgment dismissed.
Is it possible to remove the court-ordered judgment if you lose in court? Court-ordered judgments can remain on your credit history for 12-20 years. Sometimes, judgments are even renewable at the end of this period. Once a judgment is paid, it will stay on your credit report for seven years.
The Fair Credit Reporting Act (FCRA) allows you the legal right to challenge any erroneous information contained on your credit report. This includes items such as public records and judgments. Questions regarding the accuracy of a negative item can sometimes be cleared up by mailing a dispute letter to the credit reporting agencies.
Whereas credit card and automobile loan disputes are verified by automated systems, judgments are normally verified by courthouse employees using a time-consuming system. This human-factor often means that judgment disputes are settled in the debtor’s favor for various reasons, including a lack of time to perform the verification.
A governmental agency verifying a judgment is given a time frame within which to complete the verification. If the agency is over-worked and its employees are unable to verify the judgment, the credit reporting bureau is legally required to remove the judgment from your credit history.
If you are thinking of repairing your credit, you should be aware that there are several different laws which have been enacted in order to help consumers in this endeavor. The Fair Credit Reporting Act, Fair Credit Billing Act, Fair Debt Collection Practices Act, and Fair and Accurate Credit Transactions Act are examples of legislation which promote consumer rights. To repair your credit or eliminate negative judgment entries, you should familiarize yourself with all of the current consumer legislation or engage a seasoned and knowledgeable consumer credit attorney.
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