Client frequently are concerned about the effect on their credit rating of a civil judgment for damages when the judgment comes from a business dispute or a business debt. . Civil judgments appear on credit reports. Clients have asked what effect the judgment will have on their credit worthiness. I have always explained the clients that credit scoring is not a legal issue. I also believed that a civil judgment from a non-consumer transactions does not impact credit as much a liability for a recurring consumer debt.
Recently, I read a report in a newspaper that the three largest credit agencies will exclude non-consumer judgment and tax liens from credit score calculations. This makes sense because a person may owe a business or tax debt and still pay his mortgage, credit cards, and all other ongoing consumer obligations.