At Corex Debt Solution, we work tirelessly to help people get out of debt and move on with their lives.
Is a formal decision made by a court following a lawsuit. In the world of credit, it’s not uncommon for creditors or debt collectors to sue debtors for nonpayment of their debts and obtain judgments.These judgments are allowed to remain on consumer credit files for seven years from the filing date.
Do Judgement Hurt Your Credit Profile?
You are correct that your credit will be affected by the judgment remaining on your credit report. Lenders consider a judgment as a negative, whether it is paid or unpaid. However, the judgment will have less negative impact as it ages. Some states allow judgment creditors to collect using wage garnishment.
What Happens When There's Judgement Against You?
To get a judgment against you, a creditor or collector has to take you to court. If you don’t respond to a summons, or if you lose the case, the court will issue a judgment in favor of the creditor or collection agency. Once that happens, the judgment is public record and will affect your credit report.