Judgement

[lila58]

in NY I signed a car for my daughter, she couldn't handle the insurance and car payments we handed the car over and they sold it for 2,000 at auction leaving a great big chunk to collect from me. it has come off our credit report but yesterday received a collection notice from a company that bought the debt. Are we still responsible to pay. We have not contacted them in any way, we no longer live in New York haven't for the last 11 yrs

 

[army judge]

in NY I signed a car for my daughter, she couldn't handle the insurance and car payments we handed the car over and they sold it for 2,000 at auction leaving a great big chunk to collect from me. it has come off our credit report but yesterday received a collection notice from a company that bought the debt. Are we still responsible to pay. We have not contacted them in any way, we no longer live in New York haven't for the last 11 yrs

If no judgement was obtained on the balance (meaning you weren't sued), the SOL is protecting you.
Don't respond or communicate in anyway with the debt scavenger.
Don't get curious and try to let them explain things to you.
They'll lie, befuddle, deceive, and confuse you.
Don't do or say anything to them.
The scavenger will simply slither away seeking easy money, not hard!!!

 

[lila58]

There was a judgement by the original debtor, we were unaware they had taken us to court,never got served, they won,since we didn't show up. I know not to talk to them. So the collection agency that is trying to collect wont go after me for garnishment or freezing account.

 

[army judge]

There was a judgement by the original debtor, we were unaware they had taken us to court,never got served, they won,since we didn't show up. I know not to talk to them. So the collection agency that is trying to collect wont go after me for garnishment or freezing account.

The current collection scavenger would have to perfected the prior judgment by renewing it.

As I recall NY state law (better check, as its been some time since I last practiced in NY state) a debtor, is NOT obligated to pay the judgment once the Statute of Limitations on the judgment expires.

NY is a very unique state in this regard, requiring the holder of the judgment to diligently attempt to collect on the paper, not just hold it.

The New York SOL on a judgment is 10 years.

Again, NY is unique in renewal requirements regarding the SOL on a NY judgment, the creditor must apply for the renewal within 1 year prior to the expiration of the existing judgment.

Sec. 211(b) places a statute of repose on the ability to collect on a money judgment of 20 years, which means the creditor may renew the judgment only once and must collect within 20 years, after which time the debt is presumed paid and satisfied.

To levy against your bank account, the creditor must have a court order.

You should investigate whether the judgment was renewed properly and IF the creditor obtained an order of execution to support the seizure of funds.

The documents (the PROOF you'll need) should be readily available from the court where the lawsuit was pursued, some information might be available from your bank.

You probably should contact a local attorney to assist you in sorting through these issues and taking the necessary steps to recover any funds improperly seized.

 

[lila58]

thanks, i no longer live in New York but will see how I can get the info to contact court. I don't think they renewed as I just got the credit report for this year and it is not on there. Which is why I was surprised to receive notice from the people who obviously bought the debt and are trying to reach me. Thanks again

 

[disagreeable]

The fact that you left NY can have the effect of tolling the statute of limitations. Consult a lawyer for your specific circumstances.