Ever tried to apply for credit only to be rejected for a lawsuit? As it turns out, you don’t even know about it! Lots of people experience this. We wanted to take the time to explain the back story and some solutions.

When a Court decides that you owe someone money a judgment is recorded against your name. This can happen through a trial or through default because you failed to do something a Court instructed, like give notice of your intent to defend the case. These companies like TransUnion, ITC, or Experian add judgments to your credit profile, which can then be used by other businesses when they need to determine whether they want to loan you money and how much of a risk there is to them in lending to you.

If you want to clear your name, you need to apply to the Court for rescission of judgment.

In order for a Court to grant a request for rescission, it will consider a number of factors, including

-Has the plaintiff, the person or company who won the judgment, given their consent to have the decision reversed?

has the defendant paid the debt, the person who owes it?

-Did the court decide in a jury trial or as a default?

in what way was the decision rendered against you? You may have gotten the Summons, but didn’t act on it, for example. Or, were you in fact never served the Summons?

you’re trying to tell me that if this lawsuit is for damages incurred and you were not in wilful default of court rulings, there is a defines, correct? And if not, you’re simply delaying the inevitable.

-How long have you known about the judgment? You should request to have the judgment rescinded as soon as you know about it.

The Court’s Rules say that you must apply for rescission within twenty (20) days of discovering the judgment.

Here are a few thoughts to take away

Don’t assume your request for revocation will be granted. It is not just a formality. If you apply for a get-out-of-debt relief, the creditor / plaintiff may oppose it. It’s imperative that you make sure your reasons for seeking rescission are adequate.

Many default judgments are granted because people select a specific address for receiving legal papers, but then later change their address without notifying creditors. When a debtor avoids his or her creditors, this could be seen as a deliberate act. The judgment will eventually catch up with the debtor.

There might be a number of companies with this sort of default judgment. For example, a clothing company, the city council, a municipality, a telephone or cell phone provider, or others.

If you and the other party reach an agreement or judgement is settled and completed, and if your credit history is intact, you can apply for a rescission of judgment.

Once you have cleaned up your credit score, it is necessary to notify the credit rating companies so that they know to update their records.

Whenever you receive a Summons, be sure to read it and take action accordingly. Don’t shove it in a drawer and hope it will disappear!