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10 years ago my ex-wife defaulted the payments on her car loan, in which I was a co-signer. Ford Motor, the lending agent, obtained a judgement against her, so consequently me as well. She made no attempt to handle the judgment or pay off the amount.
The judgement was obtained in October of 2006; I recently received a California court statement indicating Ford Motor wants to renew the judgement, because the old one will expire in four months.
How do I fight this? What kind of response do I need to file with the court?
Aren't creditors/lenders barred from collecting a debt after 7 years per the FTC?
You can show up in court and attempt to persuade the judge of some basis why the credtior should not be permitted to continue to attempt to collect on the judgment.
It is usually a pro forma grant by the court if the credtior has made any resonable prior attempts to collect.
If I were in your situation, I would seek the advice of an attorney in your jurisdiction who has experience with how their court usually handles requests for extension.
He or she might have knowledge of what a certain court has accepted as reasons not to grant an extension.
No, creditors are not barred from collecting on a debt after 7 years. They are permitted to continue collection under the court judgement as long as the judgment remains enforceable. My concern would be more with the next step of the creditor if/when they extend the enforceability of the judgment.
That next step might be motioning the court for a "writ of execution," which is an additional order that mandates immedate and specific satisfaction by attachment of assets or garnishment of wages. If they are seeking an extension of enforceabiltity of the judgment, I woud antcipate such a next aciton on thier part.
As for credti report exclusion, the FCRA permits a judgment to remain in your credit report as long as it remains unpaid and the judgment remains enforceable.
However, the CRAs routinely exclude at 7 years from date of entry of the judgment, notwithstanding the provision of FCRA 605(a)(2) that extends the exclusion period to the later date of continued enforeceabilty of the judgment.
When exlcusion will occur will thus depend upon how the CRA treats any public record update showing a new period of enforceability.
Likely, if it has already been excluded at 7 years from date of entry, it will not be reinserted, but who knows......
Thank you for the info/advice.
I'll contact an attorney, but basically I'm hoping that the court is merciful in this one, right?
I don't have a good relationship with when it comes to money with my ex-wife (and this happened back right after we were first divorced).
Merciful?
They issued a prior judgment ordering payment of the debt.
That order has not been satisfied.
They likely view it as a matter of lack of compliance rather than of mercy to either party.
Total CL: $321.7k | UTL: 2% | AAoA: 7.0yrs | Baddies: 0 | Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping |
who was co-signer? I have heard that in lawsuits/court hearings they more so go after the co-signer because the cosigner signed their name in terms that if the orinigal signer( main owner) failed to pay than it will be up to the co-signer to pay it....so thats why I ask..
Even should they not get a renewal, they may file for a writ of satisfaction within the remaining four months of enforceability.
They seem as if they have made that decision, which is their basis for seeking an extension. They want the additional time, but I would assume they will take that action regardless.