20 year old judgement

[KarenP]

Jurisdiction

New York

I failed to pay remaining attorney fees and a judgement was entered against me approximately 18 years ago. They were awarded a default judgement because I did not appear in court. I was 18 years old at the time and failed to comprehend the long term effects this would have. Several years after the judgement was awarded they froze and seized my bank account which contained minimal funds (less than $100). I have not had a bank account since due to this. I started receiving calls and letters from a collection company about 5 years ago saying they "purchased my debt" and would seize my vehicle. I had just purchased this vehicle and therefore had no equity in it. I am nearing the end of my car loan and I'm afraid they will now attempt to seize my vehicle since it is almost paid in full. This is my only transportation to work however. I do not make a substantial income and just do not have the funds to pay this debt - even if they were to offer a lower settlement. My husband and I live paycheck to paycheck and have no savings. My husband was recently laid off when the company he worked for over 10 years closed down and I make less than 30k per year. We rent and have no assets of any value other than our vehicles, which also aren't that valuable with mine being a 2008 and his being a 2006. I would like some advice as to where I go from here. What happens once this judgement hits the 20 year mark? Is there any way possible to get rid of this judgement? They call and leave messages every day. I cannot pay this since it is 1/3 of my annual income. Can they renew this again for another 10 years? I am in NY state. Any advice would be greatly appreciated. Thanks in advance.

 

[army judge]

Okay, you should refresh your memory about judgments in general in NY state.

New York City Civil Court


Judgments | NY CourtHelp


Yes, judgments in NY are valid for 20 years.
Your vehicle isn't yours, if you're paying on it.
That prevents a creditor from trying to levy against it.
Taking it would only hurt the lien holder (bank), so relax.

What's really at risk are your wages.
The creditor could try that route.
However, they haven't tried to levy against your wages.

That tells me, especially now that a debt collector predator has ALLEGEDLY bought the paper.

I'd say they're trying to scare easy money out of you.

However, if your wages do get levied against, discuss filing a chapter 7 bankruptcy with a lawyer or two.
Research doing a bankruptcy, pro se.

Filing a bankruptcy forestalls any collection activity.

Good luck.

 

[adjusterjack]

I am nearing the end of my car loan and I'm afraid they will now attempt to seize my vehicle since it is almost paid in full. mine being a 2008

NY exempts a motor vehicle from judgment up to $4000. Even if your vehicle is worth a little more than that, collection agencies don't like to spend money to get money and it's a costly affair to attempt to get a court to allow them to seize a motor vehicle.

I agree with the Judge that the collection agency is trying to scare you into paying. They probably bought the debt for pennies on the dollar.

Don't let them get to you.

 

[KarenP]

Thank you both for all of the information. What happens to this judgement once it hits the 20 year mark? Can it be extended?

 

[adjusterjack]

Thank you both for all of the information. What happens to this judgement once it hits the 20 year mark? Can it be extended?

No.

However, you need to understand the statute that applies. It's:

New York Consolidated Laws
CVP - Civil Practice Law & Rules
Article 2 - (201 - 218) LIMITATIONS OF TIME
211 - Actions to be commenced within twenty years.

(b) On a money judgment. A money judgment is presumed to be paid and satisfied after the expiration of twenty years from the time when the party recovering it was first entitled to enforce it. This presumption is conclusive, except as against a person who within the twenty years acknowledges an indebtedness, or makes a payment, of all or part of the amount recovered by the judgment, or his heir or personal representative, or a person whom he otherwise represents. Such an acknowledgment must be in writing and signed by the person to be charged. Property acquired by an enforcement order or by levy upon an execution is a payment, unless the person to be charged shows that it did not include property claimed by him. If such an acknowledgment or payment is made, the judgment is conclusively presumed to be paid and satisfied as against any person after the expiration of twenty years after the last acknowledgment or payment made by him. The presumption created by this subdivision may be availed of under an allegation that the action was not commenced within the time limited.

What that tells you is NOT to acknowledge the debt in writing and NOT to make a payment on the debt. If you do either, a new 20 year period starts.

Frankly, you would be wise to avoid any communication at all with the collection agency. Hang up as soon as it's identified, block the calls, ignore the letter, don't accept certified or registered mail no matter where you think it's coming from.

I also suggest you check the case file to make sure you know what date the judgment was entered and then add at least 30 days to that anniversary as the enforcement date wouldn't have come about until after the appeal deadline.