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Creditors and Bankruptcy/Paying off Judgements and the affect of credit score

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Expert: Regan Shinski - 12/18/2010


Question
I had two judgement filed against me and is showing on my credit report; I would like to purchase a home by Spring of 2011, I just paid off one and the paperwork is on it way, the other one I'm getting in contact with the law firm to try and find out what the amount is and hopefully work out some sort of settlement, the judgement was filed two years ago in "08".  Now that one is paid off and I'm working on the next one; will paying them off affect my credit score? will it raise the score or will it have little affect on the score?

Answer
Dell:

Sadly, paying off the judgements MAY have a short term negative only because it will enter a more recent activity date - the date it was satisfied.  Newer information almost always causes a net negative in cases like this.  After as little as 6 months, it will be a net positive.

However, the bottom line is that you will likely not be able to obtain financing for house unless they are paid.  Mortgage companies manually review the credit reports and will not allow a loan with judgements outstanding.  So they have to be dealt with one way or another.

Ideally, you should look to have the judgement vacated.  This will be very difficult to do but it is possible.  Contact the judgement holder and try and negotiate for them to vacate the judgement upon payment in full.  This is different that simply paying it and obtaining a satisfaction of the judgement.  Try to get this agreement in writing.  I would even consider paying a premium to get the judgement vacated and removed from your reports.

The final option is through credit repair - see link below.  However, newly entered judgements are not the easiest to remove and depends on court and other factors beyond the ability of the credit repair company.  We have about 40% success rate.

Good luck, I hope this helps and I wish I had better options for you.

Regan

REMOVE JUDGEMENTS - www.ficofighter.com

Creditors and Bankruptcy

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA - University of Minnesota

Past/Present Clients
(private)

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