Judgments are one of the worst things you can have on your credit report.  Most creditors are reluctant in granting credit to loan applicants who have unsatisfied judgments.  A judgment creditor can enforce a civil judgment by garnishing wages or attaching liens to assets, however, most judgment creditors do not enforce their judgment because it is time consuming and costly.  In order for a judgment creditor to be successful in collecting anything from a judgment debtor, the judgment debtor needs to have assets.  If the judgment debtor does not have any assets, the judgment debtor is judgment proof, which means that the judgment creditor cannot do anything to collect on the judgment.  Most states have strict laws that protect judgment debtors.

How Can I Get Rid Of A Judgment?

Four ways to get rid of a civil unsatisfied judgment.  The first way is trying to get the judgment vacated.  If you were not served with the judgment the right way, you can appeal the judgment and see if you can get it vacated.  We will cover on how to get a civil judgment vacated in future blogs.  Another way of getting rid of an unsatisfied judgment is by negotiating with the judgment creditor on accepting a certain percentage of the judgment and settling it where you have no more liability on the judgment.  Make sure you get a final payoff letter and a release so you can record the judgment as being totally satisfied.  The third way of getting rid of your unsatisfied judgment is by filing for bankruptcy.  Bankruptcies wipe out unsatisfied judgments and you will no longer have the outstanding liability if you include your unsatisfied judgment on your bankruptcy.  The fourth and final way of getting relieved from paying your unsstisfied judgment is by waiting out the statute of limitations.  Your judgment will remain on your credit report for a period of seven years, however, most judgments are good for ten years from the date the judgment was entered.  It depends on which state the judgment was entered.  Most states also gives the judgment creditor an option to renew the judgment for another ten years.  For example, if you had a civil judgment entered in Florida ten years ago, the judgment creditor has an additional ten years after the original ten years where the statute of limitations has expired.  Many judgment creditors do not renew their judgments after the statute of limitations runs out.

Can I Get A Mortgage Loan If I Have Unsatisfied Judgments Without Filing Bankruptcy?

The answer to this question is YES!!!!  You can get a mortgage loan approval without filing for bankruptcy if you have unsatisfied judgments.  Most mortgage lenders do not like the idea you have unsatisfied judgments, however, if you have a payment agreement with the judgment creditor and have proof you have been making two continous monthly payments to your judgment creditor, you will qualify for a mortgage loan in Illinois and Florida.  You need to provide the settlement agreement plus provide two months worth of cancelled checks.


We are aggressively processing HUD’s new FHA Back to Work Extenuating Circumstances due to economic event mortgage loan in Illinois and Florida.  The Back to Work Extenuating Circumstances due to economic event mortgage loan program shortens the waiting period to one year for those who have file bankruptcy and/or had a foreclosure.  Contact me at 262-716-8151 or at www.gustancho.com if you feel you qualify for FHA Back to Work Extenuating Circumstances due to economic event mortgage loan program.

Gustan Cho NMLS ID # 873293

Related> Can I Refinance With Judgment?

Related> Qualifying For Home Loan With Judgment

Related> Refinancing With Judgment

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

Comments are closed.