14 yr old default judgment?

[Only_Me]

We received a lawyer's letter offering a settlement on a default judgment against my then-wife and myself from 1996 that I've never heard of. Enclosed was a supposed photocopy of the judgment. It pertains to a loan I cosigned for her that apparently she defaulted on, but I've never heard of this 14 year old supposed judgment. I called the court and they're retrieving the info from the archives. They were able to tell me the address it was served to, and I was NOT living there at that time, but have no proof of that. I remained living at the address I was at when the judgment was supposedly made for several years afterwards, have been at my current address for 9 yrs, yet this is the first I've ever heard of it. It isn't even showing on my credit report.

Do I have ANY options?

 

[army judge]

We received a lawyer's letter offering a settlement on a default judgment against my then-wife and myself from 1996 that I've never heard of. Enclosed was a supposed photocopy of the judgment. It pertains to a loan I cosigned for her that apparently she defaulted on, but I've never heard of this 14 year old supposed judgment. I called the court and they're retrieving the info from the archives. They were able to tell me the address it was served to, and I was NOT living there at that time, but have no proof of that. I remained living at the address I was at when the judgment was supposedly made for several years afterwards, have been at my current address for 9 yrs, yet this is the first I've ever heard of it. It isn't even showing on my credit report.

Do I have ANY options?

The statute of limitations regarding judgments is only 14 years in NJ.
If you do ANYTHING about this (other than investigate it through the court), you lose the protection of the SOL.
In other words, this thing is dead.
If it wasn't revived before it expired, it has no legal effect.
Whoever has the judgment (they do get around), can't collect on this dead judgment.

You should make no contact with the entity that sent you the letter.
Don't even dispute it.
You don't have to do anything.
The SOL has run.
The SOL has protected you as intended.

This debt is unenforceable, therefore, noncollectable.
Let sleeping dogs lie.
You are free from this debt.

Whoever has it, didn't want to pay to reinstate it.
They just bought it as is.
You don't even owe them (or at least your wife didn't).
They are bottom feeder, scavenger, debt-collectors.
Ignore this illegal demand for tribute!

 

[Only_Me]

Judgments are valid for 20 yrs in NJ, and may be renewed for another 20 yrs. That much I already know. The law firm that sent the letter is the same law firm that supposedly represented GMAC at the hearing in 1996. I have not, and do not intend to, contact this law firm until I know what my options are, because I'm aware that will cause major problems. I consulted a lawyer from Prepaid Legal, but she was less than helpful.

They're giving us 30 days from receipt of the letter (which we received May 14th) to settle for $2,000 on a judgment of nearly $10,000. If we have to pay it or risk my wages being garnished, we can, but it will wipe us out. It's not currently on my credit report, and I'd like to try and keep it off if at all possible. If we need to pay it, I'd like to know exactly how to handle it so that they can't try to come back after me and make things worse.

 

[army judge]

I've indicated that you don't have to pay it.

It is a demand, a useless demand, that you can disregard.

There must be a problem with the judgment, or why else would they settle it, if they can attach your wages?

I don't have all the facts.

You don't even recall being noticed for the original matter.

Lawyers, legitimate lawyers, don't settle for 20% of something that you can easily win.

I wouldn't pay these bums a dime, and I sure wouldn't settle for something I can't be held legally responsible for owing.

At this point they are desperate for something, anything.

I am not addressing your credit report.

I am addrssing a legal matter.

I'm providing you no gurantees, no one can determine what someone else will do.

I'd take my chances in court any day on something like this.

They can't win based on the facts you provided.

I'd continue to ignore these scammers.

If you want precise legal advice, take all your documentation to a lawyer and pay for it.

This is the best I can do for free, without seeing the documents you possess.

 

[tpajet]

If there was a real judgment entered it would show up on your credit report as unpaid until the SOL is up.

Wait and see what the court can provide to you, but as stated DO NOT contact the law firm. The whole thing sounds like a sham. It's not unheard of for a debt collector or a shady lawyer to try to collect on an old debt that is actually invalid due to the time elapsed, but many people will be even more scared than you and think they could end up in prison, so they pay.

If you have any further mailings from them, refuse them and have them returned un-opened.

 

[Only_Me]

If there was a real judgment entered it would show up on your credit report as unpaid until the SOL is up.

Wait and see what the court can provide to you, but as stated DO NOT contact the law firm. The whole thing sounds like a sham. It's not unheard of for a debt collector or a shady lawyer to try to collect on an old debt that is actually invalid due to the time elapsed, but many people will be even more scared than you and think they could end up in prison, so they pay.

If you have any further mailings from them, refuse them and have them returned un-opened.

I called the courts again today. They pulled up the file, and it's a genuine judgment. Apparently there's even been a lien from it. The law firm that's handled it since Day 1 is a reputable firm that specializes in things like this, bankruptcies and such. Unfortunately, judgments are valid for 20 yrs in NJ, and are renewable for 20 more years. We'd already contacted a lawyer that confirmed that if there's a judgment, regardless of how long it's been (as long as within the 20 yrs) we're stuck.

 

[army judge]

I called the courts again today. They pulled up the file, and it's a genuine judgment. Apparently there's even been a lien from it. The law firm that's handled it since Day 1 is a reputable firm that specializes in things like this, bankruptcies and such. Unfortunately, judgments are valid for 20 yrs in NJ, and are renewable for 20 more years. We'd already contacted a lawyer that confirmed that if there's a judgment, regardless of how long it's been (as long as within the 20 yrs) we're stuck.

There is more than likely a problem with that judgment.

They might not have notified you properly, therefore, you could defend on lack of notice.

If there wasn't a problem with that judgment, they wouldn't offer you a settlement of 20 cents on the dollar.

Something isn't right about this.

I've served judgments, and I don't warn my target that I'm coming.

If the judgment is valid, why would I allow you escape without paying 80% of the judgment?

I wouldn't.

So, ask yourself, why are they doing it?

Because they're kind? Awww, pshaw!!!!

I'd tread very carefully here.

What legitimate law firm is going to make any money collecting $2,000 from a $10,000 judgment?

Lawyers can make easier money than that pleading down traffic citations!

This has the stench of scam all over it!!!

Just be careful and think it through, these con-artists aren't your pal!!!