What Are Outstanding Judgements? A Complete Guide to Understanding and Resolving Them

If you’re applying for a loan, buying a home, or running a credit report, you may encounter the term “outstanding judgments.” But what exactly does it mean, and why is it so important?

In this article, we’ll answer the question “what are outstanding judgments,” explain how they affect your credit and finances, and guide you on how to resolve them legally and efficiently.

What Are Outstanding Judgements?

An outstanding judgment is a legal ruling issued by a court that confirms you owe a debt to a creditor, and the judgment has not yet been paid or settled.

This judgment often results from:

Unpaid loans or credit card debt
Defaulted lease or mortgage agreements
Medical or utility bills not paid in time
Civil lawsuits for damages or unpaid obligations

Once a judgment is issued, it becomes a public record and remains active until you pay it off, settle it, or it expires—typically in 7–20 years depending on your state.

How Does a Judgment Become Outstanding?

The process usually follows these steps:

Debt Collection – A creditor tries to collect payment from you.
Legal Action – If unpaid, the creditor sues you in civil court.
Court Judgment – If the court rules in favor of the creditor, a judgment is entered.
Outstanding Status – If you do not pay after the ruling, it becomes an outstanding or unsatisfied judgment.

In some cases, the creditor can renew the judgment, garnish your wages, or even place a lien on your property.

Types of Outstanding Judgments

Type	Description
Civil Judgment	Result of a lawsuit over unpaid debt or breach of contract
Small Claims Judgment	Typically for smaller debts under a specific dollar amount
Default Judgment	Entered when the defendant doesn’t show up to court
Consent Judgment	Both parties agree to terms of the judgment without further litigation

Do Outstanding Judgements Affect Your Credit?

Yes—outstanding judgments can significantly impact your credit, even though they may not appear directly on your credit report after 2017 (per FICO and Experian updates).

Here’s how they still affect you:

Lenders and landlords may check public records or court databases
Outstanding judgments lower your creditworthiness
May result in loan denials, higher interest rates, or rental rejections
If collected via wage garnishment, your take-home pay is reduced

Note: Even if not on your credit report, judgments are often visible during manual underwriting for mortgages or business financing.

Financial Consequences of an Outstanding Judgment

Consequence	Details
Wage Garnishment	A portion of your paycheck is automatically withheld
Bank Account Levy	Creditors can legally freeze and withdraw from your account
Property Lien	Prevents you from selling or refinancing real estate
Additional Interest & Fees	Judgments can accrue interest until paid in full
Credit Damage	Harder to get loans, housing, or low-interest credit cards

How to Find Out If You Have Outstanding Judgements

Here are ways to check:

Check local court records – Most counties have searchable public records databases
Hire a credit repair or background check service
Use a title company – Especially important before buying or selling real estate
Search LexisNexis or PACER (for federal cases)

How to Settle or Remove an Outstanding Judgment

Pay in Full

The simplest way is to pay the total amount owed. Request a satisfaction of judgment letter for your records.

Negotiate a Settlement

Offer a lump-sum payment or payment plan for less than the full amount owed. Always get the agreement in writing.

File an Appeal or Motion to Vacate

If you believe the judgment was issued in error (e.g., you weren’t notified), you may be able to challenge it in court.

Declare Bankruptcy

In extreme cases, bankruptcy may discharge certain judgments—but not all (e.g., child support or fraud-related judgments).

Wait It Out

In some states, judgments expire after 7–10 years unless renewed. However, this is risky, and the debt can still be collected until it expires.

Can You Be Sued Again for the Same Debt?

If a judgment is still enforceable and remains unpaid, yes, creditors can take additional action. If it has expired and not been renewed, no, but the debt may still be reported in collections.

Tips to Avoid Outstanding Judgements

Communicate with creditors early to work out a payment plan
Respond to lawsuits promptly to avoid default judgments
Monitor your credit and public records regularly
Use legal aid services if you’re unsure about your rights
Don’t ignore collection letters—they can escalate to legal action

Conclusion: Understanding Outstanding Judgements Matters

So, what are outstanding judgments? They are legal rulings that confirm you owe a debt—and until resolved, they can have serious financial, legal, and credit consequences. While they may seem overwhelming, the key is to act quickly, know your rights, and seek professional advice if needed.

Whether you’re trying to clear your credit report or qualify for a mortgage, resolving outstanding judgments is an essential step in regaining financial control and peace of mind.