Have you ever been told that there is a civil judgment on your credit report, and you don’t know what it is? This blog post will explain how they can affect your credit. We’ll also provide tips on removing them from your credit report.
What Is A Civil Judgment?
A civil judgment is simply a ruling by a court that someone owes money to another person or company. Credit card judgments are just one type of civil judgment. If you don’t pay your credit card debt, the credit card company can sue you and get a civil judgment against you.
It means the court says you owe the credit card company money.
The credit card company can then try to collect the money from you by garnishing your wages or putting a lien on your property. Negotiation, repayment, or bankruptcy can avoid paying a civil judgment. If you negotiate with the creditor, you may be able to set up a payment plan or agree on a smaller settlement.
You can also try to vacate it or appeal the case, but these options are more complex, and if you don’t know how to negotiate a settlement, it may require an attorney’s help. Bankruptcy is also an option, but it should be a last resort as it will damage your credit score.
How Does It Show Up On Your Credit Report?
If you have a civil judgment against you, a court has ordered you to pay money to someone. If it is not delivered, the creditor may hire a Judgment Collector to collect the debt. The Judgment Collector will report the debt to the credit reporting agencies, and the debt will appear on your credit report.
The debt will remain on your credit report for seven years from the date of the judgment. If you pay the debt, the Judgment Collector will report this to the credit reporting agencies, and you will be able to remove the debt from your credit report. If you have a civil judgment against you, paying the debt as soon as possible is essential to avoid damage to your credit score.
How To Avoid Paying A Civil Judgment?
Let’s assist you with how to stop a judgment. There are several ways to remove it from your credit report. Knowing how to negotiate a settlement is important because you have to deal with the creditor, repay the debt, or file for bankruptcy.
If you negotiate with the creditor, you may be able to set up a payment plan or agree on a smaller settlement.
You can also try to vacate the judgment or appeal the case, but these options are more complex and may require the help of an attorney. Bankruptcy is also an option, but it should be a last resort as it will damage your credit score.
How Do Credit Card Judgments Affect Your Creditworthiness?
Credit card judgments are public records and can stay on your credit report for up to seven years. They can also be renewed, which can potentially have a long-term effect on your credit score.
Lenders often view these negatively, indicating that you have failed to pay a debt. As a result, having one of these on your credit report can make it challenging to obtain new lines of credit. These can also lead to wage garnishment, bank levies, and asset seizure. In short, they can have severe consequences for your financial health, so avoiding them is essential.
Final Point
These can impact your creditworthiness, so it’s essential to understand what and how to stop them. There are several ways to remove it from your credit report, including negotiation, repayment, and bankruptcy. We hope we have helped you understand how to avoid paying a civil judgment.
