Accounting / July 19, 2018 / Pearl Bailey
A credit judgment is an order to pay a debt, and after hearing your case, a judge can issue a judgment against you. You can initiate a debt repayment plan in court or immediately pay the debt to avoid a judgment. Judgments are derogatory, and this information stays on your credit report for seven years. Since your landlord will most likely report the breach of contract to the bureaus – which will cause your score to drop – avoiding a judgment is key to lessening credit damage after breaking a lease.
A lease agreement is a legally binding contract between a landlord and a tenant. The tenant has agreed to occupy the property for a fixed term, usually a year. There are certain situations where a tenant can get out of this lease early without fear of penalty. Here are five times a tenant can legally break a lease.
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