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Information on credit reporting of a judgment on a business debt

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Mark Cappel
UpdatedJun 17, 2024

I guaranteed a business loan which defaulted. I am on a payment plan, but the payments do not show on my credit report?

I guaranteed a business loan with Suntrust Bank which defaulted. I was held responsible for the repayment of the loan. Due to the large nature of the loan, I drew up a proposal for a monthly payment plan which was accepted by the bank. Actually I speak not with the bank but with their lawyer and I make payments to the lawyer who in turn pays the bank. I recently requested that the bank posts some not to my credit file stating that I am making monthly payments as agreed but they refused. Is that legal? Once I pay off the balance, can they delete the judgment from my credit file. I really need help as situation is crushing me.

This creditor is likely refusing to report this debt to the consumer credit reporting agencies because this is not actually your debt; rather, it is a business debt which you promised to repay if the business failed to do so. The credit was not extended based on your credit rating, and the credit was not issued in your name, so the creditor is correct in not reporting the payments you are making on your credit report. In all likelihood, there is little you can do to force the creditor to report these payments on your credit report. In fact, the creditor could be violating federal law if it agreed to report this account on your credit report as a personal debt.

The judgment the creditor obtained against you is appearing on your credit report because it is a matter of public record. Even though this debt was not incurred in your name, as a guarantor, you became liable for the debt when the business defaulted on the loan. Paying the judgment will not result in its being removed from your credit report. However, the creditor should file a satisfaction of judgment with the court once you have paid the judgment. Once this is done, the judgment should appear as "satisfied" on your credit reports. If the major credit reporting agencies (Equifax, Experian, and TransUnion) do not update your credit reports in a timely manner to show that the judgment has been satisfied, you may want to file a dispute with the bureaus and send them a copy of the satisfaction to prove that the judgment has been paid so that they will update your file accordingly. A guide to disputing credit report errors is available from the Federal Trade Commission at

In regard to your credit score, a satisfied judgment appearing on your credit report will likely lower your credit rating; however, a satisfied judgment should cause much less damage to your score than an unpaid one. You should also keep in mind that this judgment should be removed from your credit report altogether seven years after the date the judgment was entered against you, so you will be able to rebuild your credit in the future.

To learn more about credit, credit reporting, and credit scoring, I encourage you to visit the Credit Information page.

I wish you the best of luck in resolving this judgment, and hope that the information I have provided helps you Find. Learn. Save.



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According to data gathered by from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

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BBill, Oct, 2009
Remedies laws are very state-specific, and because I don't know your state of residence, I cannot even begin to help you resolve your question. I do have one suggestion: Sell the judgment to a collection agency. You may not get the entire amount of the judgment, but you will get the matter behind you.
SSue, Oct, 2009
Hi, Here's what happened.I won a default judgment against a woman who owes my company money.The search firm can't find her bank accounts.She drives a 2006 car, and the Motor Vehicle Dept. car record shows that the car company has a lien, so that means she's financed, or leasing, yes?How can I find out how much money she still owes on the car?I need this info. because the City Marshall's office told me that if they pick up the car and offer to give it back to her, if she decides not to get it, I am responsible for all the towing, storage and auction fees. That would come to much more than she owes me. (I am victimized twice, here: 1st by her, then by the rules)So, if she stil owes the car company a lot of money, I would take the chance and pay for storage until she comes for it. But if she only owes a few hundred more on it, she may just say "Who cares?" and stick me with the bill. So, how can I find out how much still still owes the car coimpany on this car? (Don't know if she bought it new or used, of course)