How to Get a Judgment Off Your Credit Report

A civil judgment is a formal court order determining that an individual owes a specific sum of money to a creditor. This legal decision can arise from various situations, such as unpaid debts, breaches of contract, or personal injury claims. While a judgment signifies a legal obligation, its presence can impact an individual’s financial profile. This guide clarifies pathways for navigating civil judgments.

Understanding Judgments and Their Impact on Credit Reports

A civil judgment is a court’s final decision in a lawsuit, declaring a monetary obligation from one party to another. Historically, these judgments were reported by the three major credit bureaus—Experian, Equifax, and TransUnion—and appeared directly on consumer credit reports. This reporting lowered credit scores and made obtaining new credit, loans, or housing challenging.

Around 2017-2018, with the National Consumer Assistance Plan (NCAP), civil judgments are no longer included in credit reports from these three nationwide credit bureaus. This means a civil judgment itself does not appear on a credit report or affect credit score calculations.

Despite this change, the underlying debt that led to the judgment, such as unpaid credit card balances or loans, can still be reported by creditors as collections, charge-offs, or late payments. These negative entries can remain on a credit report for up to seven years from the date of the original delinquency and impact credit scores. Civil judgments are public records, accessible by potential lenders, landlords, or employers through public databases. This influences their perception of financial reliability and affects access to new opportunities.

Identifying Your Path to Judgment Resolution

Navigating a civil judgment requires understanding its specific circumstances. While civil judgments do not appear on credit reports from the major bureaus, the underlying debt and public record status can still affect one’s financial life. There are three distinct situations that guide the approach to addressing a judgment’s impact:

Satisfying a Valid Judgment: If the judgment is valid and the debt is owed, the goal is to satisfy the judgment, addressing the financial obligation and updating public records.
Challenging a Flawed Judgment: If the judgment is legally flawed due to procedural errors or mistaken identity, it can be challenged or vacated through the court system.
Disputing Inaccurate Reporting: Even if the judgment is valid, related entries on a credit report—such as the underlying debt or an erroneously reported judgment—might contain inaccuracies. These require disputing the incorrect information with credit bureaus.

Satisfying a Judgment and Updating Your Financial Records

When a civil judgment is valid, the objective is to satisfy the financial obligation. The process begins by confirming the exact amount owed, which includes the original judgment amount, accrued interest, and any court-ordered fees. Negotiating a reduced payoff with the judgment creditor is possible, especially with a lump sum payment.

Once the full amount (or negotiated settlement) has been paid, it is important to obtain official documentation of satisfaction. This document, called a “Satisfaction of Judgment,” is filed with the court where the judgment was entered. The judgment creditor is required to provide and file this document. If they fail to do so, the debtor can file a motion with the court, providing proof of payment. This formal filing updates the public record, confirming the judgment’s resolution.

While satisfying a judgment does not lead to its removal from credit reports, it resolves the underlying debt. This resolution can positively impact credit utilization and payment history on related accounts, which are reported to credit bureaus. Monitor credit reports to ensure any associated debt accounts reflect a zero balance or a “paid” status. Keep copies of all payment documentation and the filed Satisfaction of Judgment for future reference or if discrepancies arise.

Challenging or Vacating a Judgment

If there are reasons to question a civil judgment’s validity, individuals can pursue a legal process to challenge or “vacate” it. A motion to vacate a judgment is a formal request to the court to overturn its ruling. This action nullifies the judgment and removes it from public records.

Common grounds for challenging a judgment include lack of proper service (defendant not notified), mistaken identity, fraud by the opposing party, or excusable neglect that prevented a timely response. The legal process involves filing a motion with the court that issued the judgment, presenting evidence to support the claim that the judgment is flawed.

This legal process can be complex, often requiring legal counsel to navigate court procedures and present a strong case. If the motion to vacate is granted, the judgment is nullified, and the underlying debt obligation is eliminated. This means the judgment will not appear in public records, and any related negative entries on credit reports should be addressed or removed. Obtain a certified copy of the court order vacating the judgment for your records and to address public record issues.

Disputing Inaccurate Judgment Reporting

Even though civil judgments are no longer reported by the three major credit bureaus, inaccuracies related to the underlying debt or an erroneously reported judgment can still occur on a credit report. Consumers have rights under the Fair Credit Reporting Act (FCRA) to dispute such inaccuracies. The FCRA promotes accurate, fair, and private information.

To initiate a dispute, obtain copies of credit reports from each of the three major bureaus to identify specific errors. Draft a dispute letter clearly identifying the inaccurate entry, explaining why it is incorrect, and including supporting documentation such as court orders, payment receipts, or personal identification. Send this letter to the credit bureau via certified mail with a return receipt requested for record.

Upon receiving a dispute, credit bureaus are required to investigate the claim within 30 to 45 days. They will contact the information furnisher, such as the original creditor or debt collector, to verify the accuracy of the disputed item. If the investigation confirms an inaccuracy, the credit bureau must correct or remove the information. If the dispute is unsuccessful, consumers can add a brief statement to their credit report explaining their side of the story.