Thank you for your question about the old judgment that shows on your credit report.
Try to negotiate a settlement
One option you have is to contact the creditor's attorney and try to settle the judgment. Though I do not know the balance of the judgment in question, if you can come to the table with cash in hand the creditor may be willing to settle this debt for much less than the actual balance, especially given the age of the judgment. You should probably plan on paying anywhere from 50% to 70% of the balance, though the creditor may be willing to take less, or may ask for more. Usually, if a creditor is going to accept a settlement, it wants payment in a short time frame, so if you make an offer, make sure you have the cash available. Also, make sure that you get a letter from the creditor or the law firm outlining the terms of the agreement before you make any payment. I wrote an article answering a similar question to this one, please read How to Settle a Judgment.
Collection laws vary state by state
You should keep in mind that, depending on your state law, a creditor with a judgment against you might be able to place a lien on your property, freeze your bank accounts, and/or garnish your wages. It is important that you research your state's laws to determine what action a creditor can take against you to enforce a judgment. I encourage you to contact any creditor holding a judgment against you to attempt to resolve the account; the creditor may be willing to forbear execution on the judgment if you can start making payments on the judgment. However, if your state is one of the states whose law make the enforcement of judgment difficult, such as Texas, you may decide to simply wait to resolve the judgment at a later date. You need to determine the potential consequences of the judgment against you so you can determine whether it is better for you to try to pay off the judgment or simply let the judgment sit for the time being. You can review your state's laws regarding judgment enforcement by visiting the Bills.com State Consumer protection laws and exemptions page.
I encourage you to consult with an attorney licensed in your state to find out how the judgment will affect you, based on your individual financial circumstances.
I hope this information helps you Find. Learn & Save.