Small claims judgment and credit score?

[Anonymous]

We have a dispute with an independent contractor -- we think we owe $800, he says we owe $2200. He has filed suit in small claims court. He hasn't accepted any payment. We think we have the better of the argument but do owe him some amount between $800 and $2200. We were just going to "tell it to the judge" but then I learned that any judgment, even one satisfied the same day, can affect our credit score. Does anyone have any experience with this? I hate to settle when we are in the right, but we are looking to buy a house in the next couple years and don't want this on our credit report.

[Anonymous]

is this in DC? if so, the judge will probably send you to - or offer - mediation. Go work it out with a neutral third party and avoid a judgment.

[Anonymous]

If this has already been filed, your credit score will suffer despite the outcome. If you are a fed., you also have to disclose this on any security application, etc. If you can settle out of court, do so. My credit score went down almost 100 points to a frivilous $250 claim. even thoough I won, it is on record for 7 years. (In this case, I even went back to court to try and have it expunged with no sucess.)

[Anonymous]

Anonymous wrote:If this has already been filed, your credit score will suffer despite the outcome. If you are a fed., you also have to disclose this on any security application, etc. If you can settle out of court, do so. My credit score went down almost 100 points to a frivilous $250 claim. even thoough I won, it is on record for 7 years. (In this case, I even went back to court to try and have it expunged with no sucess.)

PP again, although thsi has been filed, you can settle and the contractor can drop the claim. Also consider at least two days out of work (lost wages).

[Anonymous]

OP here. Thanks for the helpful responses. I'm not in DC and mediation isn't available in my jurisdiction after the suit is filed. Sounds like we should give settling a shot, even though it feels like we are being held hostage by our FICO scores.