The attorney didnt dismiss. He tried to stand his ground on the evidence (I.e. the bill of sale that he had) the judge response was I rule for judgement in the favor of the defendant since the info he had couldn't show proof

Great result. You're in the clear if no appeal is taken. Of course, the creditor may file an appeal within 30 days of the judgment. If this was a small claims action (under $5,000) in District Court, then an appeal is to the circuit court and the case is re-tried from scratch ("de novo") in front of a different judge, which could result in a different outcome. If the claim was for more than $5,000, then the appeal is limited to legal errors (not a disputed finding of fact). The case would not be re-tried in that instance, but the court would hear legal arguments on whether the district court properly applied the law.