Definition
A judgment is a court decision that results when a creditor successfully sues you for an unpaid debt. Once a creditor obtains a judgment, they gain additional collection powers, which may include garnishing your wages, placing liens on your property, or levying your bank accounts, depending on state laws. Judgments are typically issued when you fail to respond to a lawsuit or when the court rules in the creditor's favor after hearing the case. While judgments are no longer automatically included on credit reports due to stricter reporting standards implemented in 2017, they remain part of public records and can still affect your finances significantly.
Frequently Asked Questions
How long is a judgment enforceable?
The length of time a judgment is enforceable varies by state, typically ranging from 5 to 20 years. However, in many states, creditors can renew judgments before they expire, potentially extending the enforcement period for decades. Even in states with shorter judgment lifespans, creditors may be able to revive expired judgments in some circumstances.
Can a judgment be removed from public records?
A judgment generally cannot be removed from public court records unless it was entered in error or you successfully appeal it. However, you can satisfy a judgment (by paying it in full), which should update the court records to show it's been paid. Some states also allow for judgment 'vacation' if you can prove there was a procedural error in how the case was handled, but this is relatively rare.
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