When you see a civil judgment on your credit report it means that a creditor has sued you for payment of a debt. It is a legal hearing that gives the debt collector an extended amount of time to collect the debt.
A judgment gives the debt collector up to 20 years to collect on a debt. This is beyond the 7 year statue of limitations that applies to most debts. Often judgments are granted on unsecured debts.
It is also becoming common for debt collectors to renew judgments. This means after 20 years if they have still been unable to collect the debt, they can renew the judgment and have the authority to collect on the debt for another 20 years.
Judgments will negatively impact your credit score. You should be informed that by paying a judgment it will not be removed from your credit history.
If you pay a judgment it only changes the mark to a satisfied judgment. It is still a negative mark and will not help improve your credit score.
The most effective way or removing judgments is done by disputing the judgment. This means you are challenging the accuracy or validity of the judgment.
The judgment must be disputed directly with the credit bureaus. This is done by sending a sample dispute letter to the credit bureaus.
When you dispute a civil judgment if it is not verified then it will be removed by the credit bureaus. It has been found that when negative listings are investigated they are often removed regardless of accuracy.
This is because it costs the debt collectors money to verify the accuracy or validity of a listing. Often debt collectors are unwilling to spend the money to verify a negative listing.
It will be difficult to get the credit bureaus to actually conduct an investigation into your dispute. This is because it costs the credit bureaus money to conduct investigations.
Thus some individuals have found it beneficial to hire a professional credit repair firm to dispute the listings on their behalf.
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