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Can they do this?

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hmnbrd2007

Junior Member
What is the name of your state (only U.S. law)? OH

I had a judgement put against me for a debt I owe. The judgement never went into effect because I have been making monthly payments to the creditor. Now they are telling me that my original loan is flagged as expired and if I don't pay the total amount due within the next few months they are going to go forward with the judgement and garnish my wages. Can they do this if I am making the original monthly payments on the loan and they are accepting them? A wage garnishment is monthly payments, isn't that what I am doing already?
 


Rexlan

Senior Member
It depends. Do you have a written agreement with them about the payments you are making now and are they being applied to toward the judgment? Was the judgment docketed and does it show up on your credit history?

If the judgment is legitimate and you don't have an agreement saying otherwise then they are certainly entitled to enforce it. That means wages and assets. Additionally, the judgment carries statutory interest from the beginning at a specified rate (usually 5-8%).

If you are making payments on the original debt be sure that you are not also being charged a higher rate of interest than allowed for the judgment. Creditors will often carry the debt, without enforcement, and charge 12-18% interest .... they can't do that unless you have agreed to it.
 

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