Received "Process of Garnishment" Letter Today.

[inthematrix]

I really hope someone can advise me here.

The backstory: I found out  a couple of years ago that I had a judgment against me that had been filed (and won by default) in 2002. It was for a small Sears card debt long past the statue of limitations. If I'd gone to court, they wouldn't have won. However, back then I didn't know anything about credit repair or SOLs. More to the point, I was never served, and by the time I learned about the judgment, it was too late to file a request that the judgment be vacated.

Over the last couple of years, I've occasionally gotten letters from creditors about the judgment but it's changed hands a few times, and I (stupidly) assumed none of them would go to the trouble to try to collect it. Now I'm kicking myself for not taking care of it.

Today, out of the blue, I received two "Process of Garnishment" letters from the county clerk's office. Two, because I'm self-employed. One was to me as the defendant, the other to my business as the Garnishee.

My questions:

• Is this garnishment going to show up on my credit report as a new/separate public record or is it considered part of the original 2002 judgment and therefore too old?
• Is there any point now in contacting the lawyer's office and offering full payment to remove the garnishment?
• Is there anything I can do, right now, to stop this from tanking my credit?

I've worked very hard for the past several years and even managed to buy a house last fall. My credit is finally starting to approach "decent" and I really don't want to see it hit bottom again.

Thanks in advance for any advice!

[guiness56]

I would contact the court clerk immediately and get all documents about this judgment.

If it is a default judgment and you were not properly served it is possible to have it vacated and stop the garnishment.  The debt doesn't go way, just the judgment.

Why do you say it was too late?

A garnishment would not show on your CR.  Is the judgment gone from your CR?

Yes, you can offer to PIF to stop the garnishment.  The attorney would need to show the courts the judgment is satisfied and to retract the order.

What state are you in?

Judgments have an SOL of between 10 - 20 years and some are renewable. 

[inthematrix]

Thanks so much for your reply.

I would contact the court clerk immediately and get all documents about this judgment.

I tried calling my county clerk's office this afternoon, but they're closed on Wednesdays. I'll have to try again in the morning.

Why do you say it was too late?

It's my understanding that in Alabama I have one year from the date of judgment to file to have the judgment vacated.

A garnishment would not show on your CR.  Is the judgment gone from your CR?

No, the judgment fell off my credit report in 2009. The garnishment itself won't show up? That would be awesome. I don't mind paying this to make it go away, if I have no choice but I just hated the thought of it killing my credit again.

What state are you in?

Alabama

[guiness56]

I could be wrong but from what I read, there is no time limit to set aside a judgment by default. 

If it is yours and you just want it gone, contact the attorney and make arrangements to pay it.  Make sure the writ of garnishment is stopped. 

[SunriseEarth]

Hello,

I would say that if the amount is significant, you may want to contact about an attorney to see about getting the default judgment vacated, if you were not properly served.

Your other option is to work directly with the creditor.  You can call them at any time to propose an alternate payment solution and for them to withdraw their garnishment.  They won't likely settle for less than the judgment, as they have the legal ability at this point to collect that amount.  If memory serves correctly,AL standards for garnishment follow the Federal CCPA limits (Creditor garns can take any income over $217.50 weekly or 25% of net wages, whichever is less).  So it would likely be in your advantage to set up a flat monthly amount.

Good luck with this issue!