If a debt collector already obtained a judgment against you, you may be wondering:

If I settle, can the judgment be removed?

The answer is: sometimes — but not automatically.

Here’s how it works.

What Happens to a Judgment After Settlement?

When you settle a debt after judgment, one of three things typically happens:

1. The judgment is marked “satisfied.”
2. The judgment remains but shows paid.
3. The creditor agrees to vacate the judgment.

Each outcome is different.

1️⃣ Judgment Marked “Satisfied”

This is the most common outcome.

If you pay or settle:

• The creditor files a Satisfaction of Judgment.
• The court records the judgment as paid.
• The judgment still appears in court records.

It may still appear in background searches and public records.

2️⃣ Judgment Remains but Shows Paid

Some settlements do not automatically include filing a satisfaction.

Always ensure your agreement requires:

• Filing a Satisfaction of Judgment within a set timeframe.

Without that, the judgment can remain active.

3️⃣ Can a Judgment Be Vacated After Settlement?

Vacating a judgment means:

• The court removes it as if it never existed.

This is much less common — but possible in certain situations.

A creditor may agree to vacate if:

• Settlement occurs quickly after judgment.
• There were service issues.
• The judgment was by default.
• It’s part of a negotiated agreement.

Vacatur usually requires:

• A written agreement.
• A joint motion filed with the court.
• A court order approving the vacatur.

Why Creditors Don’t Automatically Vacate Judgments

A judgment gives them:

• Enforcement power.
• Garnishment authority.
• Leverage.

Once entered, they have little incentive to erase it — unless negotiated.