However unfair it might seem, a satisfied judgment will continue to harm your credit for quite a few years but there are some benefits to paying off a judgment. Be advised, an unpaid judgment will not only harm your credit, but there is also a good chance the judgment will be re-filed. On top of that, an unpaid judgment will accrue interest just like other debts. In some cases, the accrued interest can be in the double digits!
According to the Fair Credit Reporting Act, satisfied judgments will remain on the credit reports for 7 years from the judgment's date initially filed or when the statute of limitations expires. The statute of limitations also varies from one state to another. Most states do allow creditors to renew judgments but the requirements may vary. It's advised you contact an attorney to find out how your statute will apply to your judgment.
Even though a judgment will have a lesser impact on your credit as time goes by, you should be concerned when creditors can use judgments to collect the debt. There are quite a few states that will allow creditors to collect by garnishing your wages. Because states allow judgments to be renewed, your creditor will have quite a few years to collect on your debt. It's extremely advisable if you have a judgment, pay it off with the courts and be done with it. If you are still concerned about judgments and their impact on your credit, you should reach out and ask for professional help.
Yoel “Mo” Molina and I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters.