Your Credit Scores
Your credit scores are made up from algorithms that determine how likely a person is to default on an obligation. The theory is the higher the score, the less likely a person is to default on something. You are a low credit risk if you have scores in the 750 range; a score in the 500 range would be a higher risk to a creditor who is asked to grant a credit request..
How Judgments Affect Your Scores
If your divorce has you obligated to pay child support for your children, and you are in default, it is possible that your ex-spouse may report you to the court, and a judgment for the past due child support may result. This is very negative. It is filed in public records within your county, and the information will be sent to the credit bureaus.
How the Credit Bureaus React to a Judgment
When the credit bureaus receive the information that a judgment has been filed against you, the negative reporting will cause your scores to drop. How drastic the drop will depend on the dollar amount of the judgment. A large judgment will have a more negative effect than a small one. Even if the judgment is resolved and a "Satisfaction of Judgment" is reported, the fact that it happened will continue to injure your scores until time passes and it is considered too old to be relevant to your current credit activities..
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