Responding to a letter of judgement

[DrTonyMitchell]

What is the name of your state (only U.S. law)? New York
The other day, my wife received a letter from a law firm that specializes in credit card collections. A judgement has been granted this firm for a credit card debt that we incurred a few years ago.

At this point, we are both on Social Security and have limited outside income. We have until 9 September 2016 to respond.

How do we respond?

Corollary question - how do I find out what other similar actions have been taken by this firm or other firms?

Thanks!

 

[adjusterjack]

The other day, my wife received a letter from a law firm that specializes in credit card collections.

What did the letter ask you to do?

A judgment has been granted this firm for a credit card debt that we incurred a few years ago.

Have you verified that the lawsuit and judgment actually occurred? If not, check your local courts and get copies of the case file.

What was the date of the lawsuit and what was the date of the default of the debt?

At this point, we are both on Social Security and have limited outside income.

Your SS is exempt from attachment and there is federal law protecting direct deposits. More on that later.

What is the nature of your limited outside income and what assets do you own?

We have until 9 September 2016 to respond.

How do we respond?

Depending on your answers to the above questions, you might not need to respond at all. Unless, of course, you want to respond by sending a check for the amount claimed, which I suggest you don't do.

Corollary question - how do I find out what other similar actions have been taken by this firm or other firms?

Why bother? Won't make any difference. But if you are curious you can just google the name of the firm along with the word "collections" and see what comes up.

 

[DrTonyMitchell]

What did the letter ask you to do?

Letter asked us to pay off the credit card debt (which I believe the actual credit card company has written off).


Have you verified that the lawsuit and judgment actually occurred? If not, check your local courts and get copies of the case file.

Not yet - that's part of the reason for asking the questions


Your SS is exempt from attachment and there is federal law protecting direct deposits. More on that later.

What is the nature of your limited outside income and what assets do you own?

Only asset is a 1995 car; I tutor science but net maybe $200 per month (less right now because of summer vacation).


Depending on your answers to the above questions, you might not need to respond at all. Unless, of course, you want to respond by sending a check for the amount claimed, which I suggest you don't do.

Not planning on paying them - just don't want any further problems

Why bother? Won't make any difference. But if you are curious you can just google the name of the firm along with the word "collections" and see what comes up.

What I have found is that they are collection agency masquerading as a law firm and using the law to achieve their goals.

 

[Zigner]

What I have found is that they are collection agency masquerading as a law firm and using the law to achieve their goals.

Are you sure they aren't a law firm that specializes in collections?

 

[DrTonyMitchell]

Are you sure they aren't a law firm that specializes in collections?

Zigner, it would be proper to say that they are a law firm that specializes in collections but since all they do is collect money they are more of a collection agency than a law firm. It may be semantics, I know, but I can't see going to this group for help with other legal matters.

 

[adjusterjack]

What I have found is that they are collection agency masquerading as a law firm and using the law to achieve their goals.

That has nothing to do with whether or not the lawsuit is legit and the debt valid and you haven't answered my questions so I don't know what else to tell you.

 

[Zigner]

Zigner, it would be proper to say that they are a law firm that specializes in collections but since all they do is collect money they are more of a collection agency than a law firm. It may be semantics, I know, but I can't see going to this group for help with other legal matters.

No, your implication is that they weren't really a law firm, with the further implication that they weren't really lawyers. You're wrong on both accounts. An attorney or law firm is entitled to specialize in a single field if they so desire, just like any other person or business in the country.

 

[DrTonyMitchell]

No, your implication is that they weren't really a law firm, with the further implication that they weren't really lawyers. You're wrong on both accounts. An attorney or law firm is entitled to specialize in a single field if they so desire, just like any other person or business in the country.

Point taken - but for me this isn't what the law is about.

As you pointed out earlier, I have to determine if this is a valid law suit and then proceed from them.

 

[Zigner]

Point taken - but for me this isn't what the law is about.

I understand your position, but it's not in line with reality.

As you pointed out earlier, I have to determine if this is a valid law suit and then proceed from them.

While this is good advice, I have to point out that it was another advisor who gave it.

 

[DrTonyMitchell]

Updating the thread

To follow up with the comments concerning the letter that my wife received.

First, I didn't set this up as I should have. What I thought I had received was not what I had received.

Point - It came from a firm that at the top of the letter identifies itself as a law firm.

Point - At the bottom of the letter, there is a statement that they are debt collector.

Point -- And while the letter opens with the following statement "The court has granted judgment on behalf of the creditor and against you" with a date 7 years ago, there is no mention of the court in question.

My concern in resolving this issue is because I missed one letter and lost my house. My actions were based on a desire not to have that happen again. On second reading of this letter, with no mention of what court and not having the original letter, I am not sure what to do, short of sending them a letter indicating that we are essentially judgment proof.

I am also exploring filing for Chapter 7 bankruptcy but that is still a month away.

Also, a brief search for this particular law firm yields some very negative comments about their actions and behaviors.

 

[adjusterjack]

First, I didn't set this up as I should have. What I thought I had received was not what I had received.

Point - It came from a firm that at the top of the letter identifies itself as a law firm.

Point - At the bottom of the letter, there is a statement that they are debt collector.

Point -- And while the letter opens with the following statement "The court has granted judgment on behalf of the creditor and against you" with a date 7 years ago, there is no mention of the court in question.

Thanks. That clarifies a lot. You've been contacted by a bottom feeding collection firm that buys old debts for pennies on the dollar and then tries to hassle people for the money.

Unfortunately, judgments in NY are good for 10 years so if that date of the judgment is accurate, you have a bit of a risk.

Start by contacting the local court in whatever county you lived in on or about that date and arrange to get a copy of the complete case file so you can figure out what happened, especially if you have no recollection of being sued and/or the judgment doesn't appear on your credit report.

Which brings up another point. Go to www.annualcreditreport.com and get all three of your credit reports. You can do that once a year for free. See if the lawsuit and the debt appear on any of the reports.

My concern in resolving this issue is because I missed one letter and lost my house. My actions were based on a desire not to have that happen again.

Please understand the distinction between losing your home to a mortgage foreclosure and having it attached for consumer debt.

For consumer debt your home is exempt from judgment for an amount based on where you live. See the following statute for the amounts:

http://law.justia.com/codes/new-york/2015/cvp/article-52/5206/

On second reading of this letter, with no mention of what court and not having the original letter, I am not sure what to do, short of sending them a letter indicating that we are essentially judgment proof.

"Being" judgment proof is more important than "telling" them you are judgment proof. You can certainly send the letter but it may or may not accomplish anything.

I am also exploring filing for Chapter 7 bankruptcy but that is still a month away.

Keep that idea in your back pocket. You can do that any time and you might not have to. Earlier I asked about your income and assets. Answering those questions can go a long way toward determining any potential risk.

Also, a brief search for this particular law firm yields some very negative comments about their actions and behaviors.

Them and every other bottom feeding collection firm on the planet.

 

[DrTonyMitchell]

Thanks. That clarifies a lot. You've been contacted by a bottom feeding collection firm that buys old debts for pennies on the dollar and then tries to hassle people for the money.

Unfortunately, judgments in NY are good for 10 years so if that date of the judgment is accurate, you have a bit of a risk.

Start by contacting the local court in whatever county you lived in on or about that date and arrange to get a copy of the complete case file so you can figure out what happened, especially if you have no recollection of being sued and/or the judgment doesn't appear on your credit report.

Which brings up another point. Go to www.annualcreditreport.com and get all three of your credit reports. You can do that once a year for free. See if the lawsuit and the debt appear on any of the reports.



Please understand the distinction between losing your home to a mortgage foreclosure and having it attached for consumer debt.

For consumer debt your home is exempt from judgment for an amount based on where you live. See the following statute for the amounts:

http://law.justia.com/codes/new-york/2015/cvp/article-52/5206/



"Being" judgment proof is more important than "telling" them you are judgment proof. You can certainly send the letter but it may or may not accomplish anything.




Keep that idea in your back pocket. You can do that any time and you might not have to. Earlier I asked about your income and assets. Answering those questions can go a long way toward determining any potential risk.



Them and every other bottom feeding collection firm on the planet.

Thanks! Your answers are a great help.