What do I do about a judgement on my credit report?
What does it mean to have a judgement against you?
If you have a judgement against you, this means that a court has instructed you to pay an outstanding amount owed to one of your credit providers. It is a very important category when it comes to your payment history and if you have a judgement against you, this will seriously affect your credit score. It can remain on your credit report for five years and this will negatively impact your ability to get any other credit in the future.
Remember that once a judgement has been filed, it will start to build interest. If you have a judgement against you, the creditor will attempt to collect the payment from you. The longer you postpone this payment, the higher the amount becomes that needs to be collected from you, because of the interest.
Here are the steps that you should take to have a judgement cleared from your credit report:
- On your credit report, you will be able to see who has listed a judgement against you. You should contact the attorneys that have a judgement against you and ask them for your outstanding balance.
- It’s time for you to negotiate a settlement amount. If you are unable to pay back the settlement amount as one payment, you will also need to negotiate a payment plan. Once you have reached an agreement, the attorneys will issue you with a Consent for Rescission of Judgement.
- Once your outstanding amount has been settled, you can ask the attorneys for a Paid-Up Confirmation and Consent of Rescission of the judgement. You need to ensure that the magistrate has the Consent of Rescission before you’re able to go to court.
- You can now contact the involved court to schedule a hearing.
- At the court, you must give the Consent of Rescission to the clerk. You will be issued with a Rescission court order. Make sure that you submit this court order to the credit bureaus.
- Someone from the credit bureaus will validate the rescission court order and your judgement should be removed accordingly.
- You should attempt to negotiate a settlement for the amount. Once it has been paid, a “satisfaction of judgement” will be filed with the court. Once the satisfaction has been filed, your credit reports will be update accordingly.