Well, OK,I don’t have a judgment. But one of my clients does. I’m giving you the conversation as a bit of enlightenment on judgments.

Client: “I have a judgment for $2000, but it was entered in error. They sued me in Utah and I lived in California.”

Me: “Ok, so when was the judgment granted?”

Client: “I’m not sure - it’s never appeared on my credit report before. How do I know that I don’t have other judgments from places I’ve lived? They can’t do that, right? Sue me in another state?”

Me: “Well, they can - but you can file a Motion to Vacate the judgment (which is basically an appeal of the court decision). When was it granted?”

Client: “I don’t know - how would I find out?”

Me: “You can call the court in which the judgment was granted and ask them. Do you think it’s been more than a year? Most states only have a one year window in ”

Client: “I think it has been.”

Me: “If it’s been more than a year, then there isn’t anything you can do about it. The time for appeal has passed.”

Client: “But they can’t do that, sue me in another state!”

Me: “If you had filed an appeal within a year of it being granted, you could have made that point in your motion. But even if the judgment was granted on total lies, the time to appeal it has passed. You need to call the court and find out when the judgment was granted.”

So the client calls the court and finds out that it was granted in 2003 - way too long ago. He calls me back. Now he wants to settle.

Client: “How much should I offer?”

Me: “Remember, these guys have a judgment against you. They can garnish your wages, get money out of your checking account. They aren’t reporting on your credit report yet, so I advise that you settle with them to prevent this.”

Client: “50%?”

Me: “They probably don’t have much incentive to settle for less than 80% - they can technically get the whole thing out of you if they have patience. Just try and work with them. See if you can make payments.”

Client: “OK.”

So he calls me back about a half hour later.

Client: “It didn’t go well. They wanted the whole thing.”

Me: “Can you make payments?”

Client: “Yes, but it will hurt.”

Me: “Remember, judgments are tough to get off your credit reports. You can point out that you have no assets and no job - see what they say. If you can - see if you can work something out. ”

The client called me back and said he had worked out a plan with the law office who had the judgment and would be paid off in 4 months.

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