topic Judgement Question in Rebuilding Your Credit

Judgement Question

Anonymous — Thu, 14 Jan 2010 23:09:23 GMT

Hi all my mom defaulted on a capital one cc her first day of default was 10/2003 according to her EQ report We live in Michigan and our sol in michigan is six years. On 12/24/09 an attorney for capital one garnished her checking account for 584.00 from her checking account was this legal? Didnt the sol run out ?

Re: Judgement Question

Anonymous — Thu, 14 Jan 2010 23:27:19 GMT

Sounds like they got the judgment in before SOL ran out. Once a judgment is ordered, SOL no longer matters. Garnishment is a method of enforcement, and it may take several months after the default judgment is issued for a garnishment to hit. An order to garnish wages can come anytime after the judgment is issued, although some states do have a time limit for how long the plantiff has to enforce the judgment. Did you mother recieve anything from the attorney or the court regarding a default judgment? Was this the full balance or will there be more? There are some defenses to vacate a judgment if she was not properly served, but it's best to get an attorney if she wants to fight it. Most states also have provisions to suspend garnishments if it creates an undue hardship, but again, she should get an attorney.

FYI - You can be sued for a debt even after SOL. It is up to you to prove, in court, that the debt is past the SOL. In many cases, if the defendant doesn't show up, the judgment is entered regardless of the SOL.

Re: Judgment Question

Anonymous — Thu, 14 Jan 2010 23:49:31 GMT

Thanks for the quick response. My mom did receive a letter in the mail in November that a judgment had been entered against her for 1052.00 so it will be more to come. She never responded to the letter. Thanks again for all the info much appreciated. I think she is just going to pay the rest and be done with it.

Re: Judgment Question

Anonymous — Fri, 15 Jan 2010 09:52:00 GMT

@Anonymous wrote:
Thanks for the quick response. My mom did receive a letter in the mail in November that a judgment had been entered against her for 1052.00 so it will be more to come. She never responded to the letter. Thanks again for all the info much appreciated. I think she is just going to pay the rest and be done with it.

Well before a judgment is entered, your mom must have been served a Summons & Verified Complaint notifying her of the pending lawsuit. If she was never (or improperly) served, you may be able to have the judgment vacated.

Another thing you might want to do is check the Michigan Civil procedure Law. In some states a creditor can be civilly liable for starting an action after the SOL has expired.