- The first method in avoiding a judgment against you from a creditor should be to attempt to negotiate with the creditor. During the negotiation process, be aware that payment of the debt could nullify any statute of limitations claim you may have. The objective in negotiating the debt is to avoid an entry of judgment. Once the court orders you to pay the debt, you may not be able to negotiate with the creditor.
- The creditor will serve you with a notice of its intention to obtain a judgment against you. An entry of judgment is public record in small claims court and can remain on your credit report even if paid in full. You may be able to contact the creditor directly and make arrangements to pay the debt before a judgment is entered.
- A dismissed judgment is reported as legally void and does not appear as severe as a paid judgment on your credit report. You may be able to work with an attorney to get the judgment dismissed. It should be noted that unless the creditor has made a mistake in its attempt to collect the debt, it is extremely difficult to get a judgment dismissed. Creditors may occasionally attempt to collect for the incorrect amount and on rare occasion attempt to collect from the wrong debtor.
- You may have the right to appeal the entry of judgment. You should contact your local civil court for the rules and documentation required to appeal the court's decision and the entry. In most cases, the appeal should be in writing and submitted to the court within 14 days after the entry.
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