How to Pay an Old Judgment

If you want to buy a house, take out a large loan, or just need a clean slate, you'll need to pay off that old judgment. Doing so may take a bit of work, however, since you may need to track down the creditor and negotiate repayment. On the other hand, you may be able to talk your judgment creditor into dismissing the judgment, which can have a positive impact on your credit score.

Instructions

1

Determine who owns your judgment debt and how much you now owe with interest and fees. In some cases, your judgment creditor is the same individual or business that originally sued you. Sometimes, however, creditors sell their judgments to collection agencies, so you may have to do some digging to find out who you should repay. If in doubt, write to the original creditor and ask. Be sure not to make any promises or offers of repayment in the letter, however, since this can reset the statute of limitations on the debt and make negotiations more difficult.

2

Contact the creditor, in writing, and explain that you want to pay off the debt. Ask the creditor if it is willing to have the judgment dismissed in exchange for your repayment. If your creditor is willing to do this, you can get the judgment removed from your credit report. Be sure to get all promises and agreements in writing before sending any money.

3

Send your payment and then follow up with the credit bureaus to make sure that they have updated your credit reports. Even if your creditor refused to dismiss the judgment in exchange for payment, your credit report should reflect a zero balance on your judgment.