As you can imagine, when your debt is sent to collections, your credit score will be damaged.
If from there your creditor seeks a judgment for payment, your credit score will plummet even further.
Your creditor is sending a clear signal that it is through playing games if you are served with a Notice to Appear in court for a judgment proceeding.
You will have 30 days from being served to object to the filing.
You can have the case dismissed if you can prove that the debt is invalid.
If a creditor merely threatens to go to court, it may or may not be serious.
In any event, you should view going to court as an absolute last resort.
If your credit report lists an "unpaid" judgment, it will remain on your credit report for 10-12 years.
If the judgment remains unpaid at the end of this time, it can be renewed.
A judgment which has been paid can remain on your credit report for up to 7 years from the date paid.
Assuming you owe the debt, the debt is still within the statute of limitations (check your state's statute of limitations laws), and you would prefer to negotiate the outcome instead of going to court, you should make an attempt to contact your creditor.
Prior to doing this, you should check your state's statute of limitations laws because, if the debt is beyond the law, making an offer to pay could begin the clock ticking again and eliminate any statute of limitations claim you may have had.
Your credit report will take a heavy blow if the court orders you to pay a debt with an official court order.
If you can negotiate a settlement with your creditor prior to entry of a judgment, you will avoid having this negative mark show up on your credit report.
It is best to try to negotiate a settlement with your creditor.
It is often the case that a creditor will accept a portion of the amount owed in exchange for the time and expense of going to court.
Alternately, you could offer a payment plan.
If your creditor will not accept any offers, you should consider talking to the lawyer handling the matter for your creditor.
If a judgment is dismissed, it will be reported on your credit report as "legally void.
" This is considerably less harmful than a "paid" judgment.
Paid judgments remain for seven years on your credit report from the time paid.
The best outcome would be to negotiate a full deletion of all negative information.
If you are successful in negotiating this, make sure you get the agreement in writing and that you obtain the signatures of both parties.
Keep in mind that once the court becomes involved, your chances of negotiating a settlement are next to none.
You might consider hiring a good consumer credit attorney.
It may cost you a little bit, however, you may find that, by having an attorney handle the negotiations, you may save money as well as minimize the damage done to your credit score.
If from there your creditor seeks a judgment for payment, your credit score will plummet even further.
Your creditor is sending a clear signal that it is through playing games if you are served with a Notice to Appear in court for a judgment proceeding.
You will have 30 days from being served to object to the filing.
You can have the case dismissed if you can prove that the debt is invalid.
If a creditor merely threatens to go to court, it may or may not be serious.
In any event, you should view going to court as an absolute last resort.
If your credit report lists an "unpaid" judgment, it will remain on your credit report for 10-12 years.
If the judgment remains unpaid at the end of this time, it can be renewed.
A judgment which has been paid can remain on your credit report for up to 7 years from the date paid.
Assuming you owe the debt, the debt is still within the statute of limitations (check your state's statute of limitations laws), and you would prefer to negotiate the outcome instead of going to court, you should make an attempt to contact your creditor.
Prior to doing this, you should check your state's statute of limitations laws because, if the debt is beyond the law, making an offer to pay could begin the clock ticking again and eliminate any statute of limitations claim you may have had.
Your credit report will take a heavy blow if the court orders you to pay a debt with an official court order.
If you can negotiate a settlement with your creditor prior to entry of a judgment, you will avoid having this negative mark show up on your credit report.
It is best to try to negotiate a settlement with your creditor.
It is often the case that a creditor will accept a portion of the amount owed in exchange for the time and expense of going to court.
Alternately, you could offer a payment plan.
If your creditor will not accept any offers, you should consider talking to the lawyer handling the matter for your creditor.
If a judgment is dismissed, it will be reported on your credit report as "legally void.
" This is considerably less harmful than a "paid" judgment.
Paid judgments remain for seven years on your credit report from the time paid.
The best outcome would be to negotiate a full deletion of all negative information.
If you are successful in negotiating this, make sure you get the agreement in writing and that you obtain the signatures of both parties.
Keep in mind that once the court becomes involved, your chances of negotiating a settlement are next to none.
You might consider hiring a good consumer credit attorney.
It may cost you a little bit, however, you may find that, by having an attorney handle the negotiations, you may save money as well as minimize the damage done to your credit score.
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