I am being sued for medical claims by the adverse party in an auto accident. Both the insurance company and I am vigorously disputing the amount of the claim, which is not justified by the relatively small amount of damage. The insurance company said they will pay any judgment against me in small claims court and I will owe nothing. Why will this be a black mark on my credit report since I will have no debt?
2006-12-19 12:56:56 · 3 answers · asked by Bonnie S 1 in Business & Finance ➔ Credit
You need to have the court dismiss the case. The judgement will affect your credit report and you can loose tons of money over the years of paying high interest rates on future loans. A judgement shows on your credit as a negative mark. It shows that you did not pay the bill and a court had to order you to do so.
2006-12-19 13:01:15 · answer #1 · answered by Mariposa 7 · 0⤊ 0⤋
I wish you had specified the amount of the claim, because if it's over $25,000, your insurance company has some explaining to do as to why they're not paying for your defense or settling this matter with the other driver's insurance company. This is a new one on me.
If they do agree to pay for any judgment against you, then don't do anything. Get it in writing, though. It's in their best interest to fight the case, not yours. You couldn't care less how much the insurance company is going to have to cough up.
As far as a judgment against you goes, that's where I have a problem. I don't know how grossly negligent you were, but I don't see why this isn't settled out of court between the insurance company and the other driver. That's what ALWAYS happens, and I ought to know. You shouldn't have to do anything here.
Be that as it may, a judgment against you is a public record. In order for that to go on a credit report, somebody (in this case the other driver, or his lawyer) has to record the judgment and file an Abstract of Judgment with the Court. That will definitely be part of your credit report because it is a debt you owe. Once the judgment is paid, that lien is removed and your credit record should be expunged. I say "should be" because you probably have to ask the reporting credit company to take it off your credit record.
That sucks. Get a laywer. He'll deal with the insurance company, and be sure to make a claim for legal fees against the insurance company. Read your policy about legal fees.
2006-12-19 13:51:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It is just like a bill. Until you pay the judgment it will continue to show as a debt.
2006-12-19 13:01:16 · answer #3 · answered by Chillin-it 7 · 0⤊ 0⤋