Re: HELP - RUNNING OUT OF TIME (Judgement for Cred... - myFICO® Forums

raine22 · ‎09-01-2015

My husband is being sued to revive a domant judgment rendered on Sept. 18, 2007 (he did not appear and they won judgement by default). The OC was Bank of America and the account was CO for $2,057. The date of last activitiy on the account was May, 2004. Stone Creek Financial, Inc. purchased the account after it was sent to Pennacle Collection and are suing for is $7,691.88 plus interest in the amount of $3,442.58 thru date of dormancy 4/21/2013 plus interest at the rate of 8% per annum from the date the order is granted and costs. He did not appear for the Exam Hearing on 7/30/2015 because of work. Therefore now he is being Summons on Contempt set for 9/03/15 Thursday in which he will have to miss work, it states he can be arrested if he does not appear.

I'm not sure since the judgement was already awarded if we have any chance in not having to pay $12,636.03 for something that was initially $2,057. Should we hire an attorney, would it be worth trying to reduce the amount of the $$. Also, the statue of limitation in Ohio is 6 years for a credit card contract. Do we have any foot to stand on now after all has been done?

Statute of Limitations

Ohio’s statute of limitations is six years regardless of the type of debt. The time limit is counted from when a debt became overdue or when a borrower last made a payment, whichever happened more recently. If it’s been more than six years, a creditor cannot sue a debtor for debt collection purposes.

Fair Debt Collection Practices Act (FDCPA).

Prohibits a collection agency from discussing your debt with your family, friends, neighbors or employer.
Limits the times of day collectors can call you.
Bars the use of slurs, obscenities, insults or threats.
Provides remedies for consumers who wish to stop collection agencies from all contact.
Requires collectors to verify all debts and end collection procedures if verification is not forthcoming.

Can we still do a debt validation? Are they allowed to charge this much interest? Everything I read says No.

FDCPA 808(1), which states that it is a violation of the FDCPA for them to attempt to collection any amount, including any interest, fees, etc., that is either not specifically authorized in the account agreement that created the debt, or is otherwise permitted by law.

Any advise from the Credit Gods appreciated!

coterotie · ‎09-01-2015

Okay, let's make sure we're using the correct terms.

If he has a valid judgement against him, then the statute of limitations doesn't apply, but rather the judgment collection time limits apply.

Each state has their own times that a judgement may be collected against. It appears from what you have written they are attempting to extend that time, having been successfully awarded a judgement.

If he doesn't show up, it isn't just the contempt that is the major issue, but rather the fact that he will lose by default just like he did the first time. (apparently)

You may have a couple of options, for instance you may be able to get the original judgment overturned or you may be able to negotiate a payment plan. If you show up in court prepared to argue the validity etc. it may buy you some time. You can also ask the court for an extension at that time to do research and prepare a defense.

It may be in your best interests to consult an attorney or your local legal aid society.

Here is what I think is the applicable law and it appears they have complied although they may be over reaching on the amount they are attempting to collect.

In Ohio,a judgment becomes “dormant” five years after the date of judgment or the

last execution. Once it becomes dormant, it no longer acts as a lien upon the estate of the judgment debtor.

Additionally, pursuant to O.R.C. § 1343 et seq ., interest should not accrue during the period of dormancy.

O.R.C.§2327.01 defines executions as a process issued by the court itself...and directed to the sheriff.

As an example, a Creditor obtains Judgment against Debtor on October 10, 2000 , and the date of the last

attempted execution on the Judgment was February 6, 2001. Pursuant to O.R.C. §2329.07, the judgment

becomes dormant five (5) years after the date of judgment or last execution. Therefore, the Judgment in this

instance did not become dormant until February 6, 2006. When a judgment becomes dormant, it may be revived by

a Motion to Revive Dormant Judgment brought within ten (10) years after it became dormant. See O.R.C. § 2325.15 through 2325.18.

As a practical matter, a judgment may be enforceable for a minimum of fifteen years if the proper steps are taken to revive any dormant judgment.

raine22 · ‎09-01-2015

I didn't explain that the best, but you sure made sense out of it ! This is all from old history when he was married prior to us now has become an issue for us because the account was left in his name. I didn't even realize they could keep pursing once it was past the statue of limitations via dola.

It sounds they have taken appropriate action from what you've stated. Making arrangements to pay the initial amount he owes and court cost but $12,000 seems to be excessive. Great idea for asking for time to prepare. I really think legal representation may be our best answer to save some money. I like the idea of trying to get the original judgement overturned and agree on the orignal balance which we could just pay in full and it would be done.