An X Friend is suing me in small claims court. (Under $1,500) He is not a company, but rather an old friend. If I do not show up for court and get served a judgement, will this affect my credit score? My attorny has advised me to "no show" and file for an appeal. My FICA score is above 800 and I am concerned that it will hurt it. If I "no show" and have a judgement, how/or will the credit companies get this information? I could go down and pay it now and just be done with it, but this is among some bigger legal negotiations being talked about among our attornys. If I get a judgement and pay it soon there after, will it still affect my score? Once I pay it, I will never see this money again and the negotiations for the "bigger picture" will be voided. How can I save my credit through this?

Hello Steph:

First and foremost, FIRE that lawyer. Any lawyer that advises his client NOT to show up in court and suffer a default judgment being rendered against them, is an IDIOT!

In order to win an appeal, he'll have to show how the trial court erred. HOW can he know if the trial court errs if he isn't there?? IF he has grounds to win an appeal, he has grounds to WIN the lawsuit.

You do NOT want a judgment rendered against you. The credit bureaus employ people to go through those records every day, so that they can be reported on your credit reports, so that your credit score goes down.

PLUS, if he wins a judgment, he can go directly to your bank, probably on the same day, and TAKE the money out of your account. The judgment will stay on your credit report for 7 years. A paid judgment isn't any better than a non paid one.

Finally, IF your friend can prove his case, then you are better off trying to negotiate a settlement with him FIRST. If your friend CANNOT prove his case, then show up and tell the judge why.

excon

Of course a judgement affects your credit. A judgement means you reneged on a debt. Why wouldn't that affect your credit?

And I agree with excon, get rid of that shyster. What possible reason could he have to justify such lousy advice?

All of the large credit reporting agencies have arrangements in place with the civil courts to acquire information not only regarding judgments but claims filed as well.