How Will Judgments Affect My Credit Score

[drubenw]

My question involves judgment recovery in the State of: NJ

A judgement was made against me in a dispute with a former landlord for 1/2 months rent not covered by security deposit.

The judgement was made for the plaintiff.

My question is: if that plaintiff fills out paperwork for collection will it negatively impact my credit score?

If I contact plaintiff and try to pay directly so they don't file paperwork, will it still negatively impact my credit score?

Is there anything I can do so that it doesn't impact my credit score. We couldn't agree in mediation due to LL's obstinate and unreasonable nature.

Please help as I'm worried about the potential implications!

[Mr. Knowitall]

You should expect that the credit reporting agencies will pick up the judgment as a public record, and that an unpaid judgment will have a significant, negative impact on your credit score.

If you lost in court, it would appear that the problem wasn't the "LL's obstinate and unreasonable nature" - it would appear to be that you owed the landlord the money.

[drubenw]

We were in court because we both disagreed on who was at fault. It was a 50/50 decision. Thanks for those answers.

if I try and pay direct to plaintiff and avoid creditor or other avenues, will that potentially avoid more negative credit impact?

[cmre3456]

Please talk to the clerk of the court and see if they have a process for you to pay it into the court. Some do, some don't.

What you want is a "satisfaction of judgment" signed by the landlord or the court. Proof you paid it is "a little bit better" than having an outstanding judgment. If you just send that landlord a check without getting the judgment satisfied on the record, it doesn't look as good on your record. The landlord isn't likely to cooperate in helping you with that.

Something else you could do which is harder but better than nothing is to buy a cashier's check, write a letter saying "here it is" and send it by registered mail, return receipt requested. Then send copies of that to the credit reporting agencies along with another letter asking them to note that the judgment is paid. In other words you open a dispute with the credit reporting agencies and they are obligated by law to correct your record from "unpaid" to "paid" judgment.

I would get the judgment paid with proof of satisfaction, and then do nothing for a while unless the judgment showed up on my record. Sometimes the credit agencies miss noting them. (But not often.)

[Betty3]

A judgment is an adverse public record, and thus it will lower your credit score. How much it drops depends on the other information contained within the report.

Once a judgment is on your credit report, it will remain there for seven years. Even if you later pay the bill, it will not be removed from the report. (just will generally show that it was paid) Credit bureaus can report negative information as long as it's accurate. The older the judgment becomes, however, the less it will affect your overall score.