What Are Outstanding Judgments Against You?
An outstanding judgment is a court order to pay a debt or perform an obligation to another party. A court judgment can be entered against an individual if a creditor wins a case or if the person fails to appear in court. If you have an outstanding judgment it means the debt hasn’t been paid or settled.
What’s “Outstanding Judgment” Mean?
An outstanding judgment is a court decision that hasn’t been paid or settled. A final judgment dictates the obligations and rights of each side, including payment responsibilities. It means a debt or obligation is still due and enforceable by law.
Outstanding Judgment Characteristics:
- From lawsuits for unpaid debts, damages or contractual disputes.
- Credit card debt, loans, medical bills or other financial obligations.
- Judgment debt refers to the financial obligations resulting from a court's decision.
- Can harm your credit score and financial reputation.
Are There Any Outstanding Judgments Against You
When someone asks “Are there any outstanding judgments against you?” they are asking if you have unpaid court orders to pay money or perform an obligation. This question may come up during:
- Loan or mortgage applications.
- Employment background checks.
- Legal proceedings or financial assessments.
A yes answer means you are legally required to settle a debt which may impact your loan or financial opportunities. Credit reporting agencies may not include certain judgments on credit reports, but individuals should still be aware of their debts.
What Happens When You Have an Outstanding Judgment?
1. Credit
Court judgments will show on your credit report and significantly impact your credit score and personal reputation.
Although they may not show under certain credit reporting rules, creditors and lenders can still access this info through public records.
2. Wage Garnishment
- Creditors can garnish your wages to collect the amount.
- A portion of your paycheck will be withheld to pay the judgment.
3. Bank Account Levy
Creditors can get court approval to freeze or levy your bank accounts to collect the debt. This means they can target your financial holdings, including bank accounts, to recover the owed amount.
4. Property Liens
A judgment lien can be placed on your property, including various types of personal property such as cars and other physical items, preventing you from selling or refinancing until the debt is paid.
What’s an Outstanding Judgment?
An outstanding judgment is considered unpaid until the debt is paid, settled or discharged. This includes:
- Court ordered monetary awards.
- Unpaid damages from lawsuits.
- Any court ordered payment obligation not yet fulfilled.
- A money judgment specifying a debtor's obligation to pay a certain amount of money to a creditor following a lawsuit.
How to Check for Outstanding Judgments
If you think you have an outstanding judgment against you here’s how to check:
Judgments can be found by searching public records, contacting the court where the judgment was issued, or using online databases. It is important to verify the details and ensure the judgment is still enforceable. The duration for which judgments remain enforceable varies according to state law. Consult local statutes and legal experts to understand these variations specific to each state.
1. Search Public Records
Most judgments are filed in public court records. Visit your local courthouse or search online databases to check.
State laws differ in terms of what property can be taken to settle debts and the duration creditors can pursue payment.
2. Check Your Credit Report
Judgments may not show on newer credit reports but older reports may still have them. Lenders can also access other financial history.
3. Contact the Court Clerk
Call the clerk’s office in the jurisdiction where the judgment was filed.
How to Settle Outstanding Judgments
1. Pay the Judgment
- Pay the debt in full.
- Get proof of payment and make sure the creditor files a “Satisfaction of Judgment” with the court.
2. Settle
Contact the debt collector to negotiate a lower payment or payment plan.
Make sure any agreement is in writing.
3. File Bankruptcy
- In some cases filing for bankruptcy can discharge the judgment. But some debts (e.g. child support or taxes) are not dischargeable.
4. Vacate Judgment
- If you think the judgment was filed in error or without your knowledge you can ask the court to vacate it.
Outstanding Judgments FAQs
1. What does “outstanding judgments against you” mean?
It means a court has ordered you to pay a debt, and you owe money because the obligation has not been paid.
2. Can an outstanding judgment hurt my credit?
Yes, judgments can lower your credit score and show on financial history reports lenders can access.
3. How long does an outstanding judgment stay?
Judgments are usually enforceable for a certain period of time, often 10 years and can be renewed by the creditor.
4. How do I get an outstanding judgment off my record?
You can get a judgment removed by paying it in full, settling with the creditor or filing a motion to vacate if it was filed in error.
5. Can a creditor garnish my wages for an outstanding judgment?
Yes, creditors can file a court order to garnish your wages to collect the debt.
6. What is an outstanding judgment?
Any unpaid or unresolved court-ordered payment obligation is considered judgment debt.
7. How do I avoid outstanding judgments?
Pay debts on time, respond to legal notices and seek professional help to resolve disputes before they go to court.
Bottom Line
Outstanding judgments are serious legal and financial obligations that can hurt your credit, income and property. Knowing what they are and how to settle them is key to being financially healthy. If you have outstanding judgments contact a legal or financial professional to get help and get back in control of your finances. Debt collectors play a significant role in the process of settling outstanding judgments, and understanding their tactics is crucial.