How to Completely Wipe Out a Judgment

A judgment can ruin a person's credit rating and put him at risk for wages garnishment or bank account seizure. Once a judgment is filed by the court, it can remain on an individual's record for a decade. Taking action to prevent or minimize the negative impact of a judgment is imperative. Depending on the situation that caused the judgment, an individual has several options at his disposal to satisfy the judgment, eliminate the judgment or negotiate its release.

Instructions

1

Research the judgment paperwork. Evaluate the legitimacy of the claim. Ask yourself if it has been paid. Review all available paperwork pertaining to the judgment. Get referrals from friends to find a trusted attorney to consult with about your financial options.

2

Consult with an attorney and any other recommended advisor to understand available solutions. Ask good questions about the pros and cons to each recommendation made. Do not make a decision on the spot. Take good notes. Gather all available data about your options.

3

Research bankruptcy options carefully. A recorded bankruptcy can eliminate certain career options and cause credit problems for a decade in the future. While bankruptcy may have a negative impact on a professional's career and credit, it does eliminate judgments and prevent wage garnishment and bank account seizure. Other less drastic measures should be considered first, before deciding on bankruptcy.

4

Evaluate the option of paying the judgment off. Consider paying the debtor off in exchange for elimination of the judgment. This option offers a practical solution to the problem if the debtor is in a position to pay the debt. Negotiate a manageable one-time payment to settle the debt, or establish a reasonable payment plan. Creditors will usually settle for less than the full amount owed, particularly given the threat of bankruptcy that will leave them with nothing. If the creditor agrees to accept the arrangement offered, get the details in writing. Get the creditor to agree to release the judgment when it is paid.

5

Check the statute of limitations to see if the judgment has legally expired. The statute of limitations differs between states. The time frame is usually four to six years. Get legal advice to determine the exact timing for the statute of limitations expiration date. The last payment made is when the statute of limitations starts, typically.

6

Prepare your Motion to Vacate if circumstances permit. Laws differ by state, pertaining to specifics about what reasons can be used to legitimately request this legal action, which renders the judgment void. Consult with an attorney or a paralegal with experience filing the paperwork for this court procedure to help you file the documents properly. If the creditor does not show up in court to fight the motion, then the motion to vacate will be filed. If the creditor cannot adequately answer the claim presented as the reason for preparing the motion, then he will probably contact you to make a deal.