Please advise: Judgement disappeared from credit report.... but then I get bank levy notice

[Anonymous]

Hello!

I'm a California resident, and back in 2009 I was sued by Arrow Financial for  $7000 as I was unable to pay my credit card (originally $3500). I found the papers on the ground outside my door and foolishly ignored them. In early 2015, the judgement disappeared from all three of my credit reports. I thought I was in the clear.

This week (Merry Christmas 2016!) I got a packet in the mail from a neighboring county's sherrif's department explaining that "The judgement creditor seeks to levy upon property [...] ANY AND ALL ACCOUNTS IN THE JUDGEMENT DEBTOR'S NAME" with my SSN listed. The documents are clearly official and legitimate. I now owe more than $13,000 and am accruing interest at more than $2 a day.

Currently, I still have access to my bank account and its (meager) assets are not frozen. I am disabled and receive Social Security; I know that is protected. I have some questions. Any help would be greatly appreciated. Thank you very much!

1) I've prepared a Claim of Exemption form along with a Financial Statement and a Declaration. Should I mail it immediately to the sheriff's office? I can definitely show financial hardship and I have 10 days to return it.
2) I have mixed funds with the bank account including gifts and small revenue from side jobs. My bank balance is generally kept very low (less than $2,000). Are future Social Security and other deposits at risk in case the account is frozen?
3) Why isn't my bank account frozen yet?
4) Can my bank account be frozen at all due to the Social Security direct deposit if I keep the balance at or below the deposit amount?
5) Should I call the law office that is representing (the now defunct) Arrow Financial and attempt to negotiate with them?
6) If I make a payment plan deal with them, will my debt reappear on my credit report?
7) After 10 years the judgement expires unless they renew it. Are they likely to renew it? Can I run out the clock for the next two years?
8) Since the judgement is gone from my credit report -- can it ever re-appear?
9) Since the judgement is gone from my credit report -- am I obligated to pay it?
10) Is there any possibility I can get the judgement dismissed due to financial hardship?
11) Is there anything fishy about this? How is the plantiff Arrow Financial Services? Why wait 7 years to attempt to levy my bank account? Is this even legal? Other thoughts?

[RobertEG]

I would immediately consult with an attorney for answers to any specific legal questions.

Once a court issues a judgment, it has a legal period within which it remains enforceable.

In most states, the initial period of enforceability is ten years, but can be easily be extended by motion to the court.  I would not rely on expiration of the judgment.

Apparently, your judgment is currently enforceable. 

During the period of enforceability, the judgment creditor can take additional action to secure specific, required payment of the debt.

That is apparently your situation.

I would comply with any papers requiring response to any civil action they have taken,  If in doubt as to what you must provide, I would consult an attorney.

As for credit reporting, FCRA 605(a)(2) permits a judgment to remain in your credit report until the later date of either 7 years from the date of entry of the judgment by the court, OR the expiration of the period of enforceability of the judgment.

While the CRAs will often remove judgments at 7 years from date of entry (which apparently occured in your case), the judgment can remain or be reinserted as long as the judgment currently remains enforceable.

I would consult an attorney if in doubt regarding the period of enforceability in your state or any required response to any civil action.

Even if the judgment were to be excluded by a CRA, that relates only to credit reporting, and has no effect upon their ability to obtain an order that you pay.

[nolamike]

not sure what steps you have taken so far but please read this

http://www.disabilitysecrets.com/page1-18.html#

next file the document as per california requirements

third GO TO THE COURT DATE

Get a lawyer! go to public aid if you have too.

if you physically cannot get to the court date call the clerk of the court and request the case be pushed back to a date you can make it. make sure your reason is medical based like surgery.

as for your bank accounts. If the bank gets a judgment aned order to garnish your accounts, they will verify the source of every electronic deposit or recorded government check to make sure it is judgement proof which your Social Security is as is SSDI and SSI in this case. They will look at the last several months of your accounts and the highest balance that is judgment proof will be determine their response to the judgement.

If your other deposits are over that amount they will take that amount, so stop depositing money into the account that is not from Social Security until this is cleared up.

if the other amounts do not overpower your judgement proof money then the bank will tell the garnishing body too bad the account is judgement proof.

this will happen frequently until you get this settled in court or pay them off.

Go to court, tell the judge your financials and medical conditions, bring PROOF that it is permanent.

The court has a responsibility to prevent abuse of the system. If you are unable to pay a judgement and there is no foreseeable possibility of you doing so, the court must reject the case, discharge the debt permanently and bar the creditor from seeking further relief or creating a situation where they assist another creditor from trying to recover the date in the future.

Dont feel bad for the CA, they will get to write down the entire 13K plus legal fees off their taxes.

people screw themselves by not going to court out of fear. DONT BE AFRAID. you should be fine if you just go and prove your inability to pay due to permanent disability