9 year old judgement in GA

[thejavabuddha]

What is the name of your state? GA

In 1998, when I was young and poor, I had a car repossessed. They auctioned the car and the difference that I owed them was somewhere in the neighborhood of 4600.00. They sued and won by default, due to the fact that besides being young and poor I was stupid too and did not even show up to court. Now, 9 years later, they've come to collect. They now say I owe them 9900.00 (late fees, court fees, interest, etc) and they've garnished my paycheck. I have two questions:

1. Is there a time limit to collect on a judgement, i.e. can they still garnish my wages after 9 years.

2. Can they jack up the amount to more than double what I originally owed them? I have no problem (although it does hurt) to pay back the amount I owe...I owe it after all, but come on! Almost 10 grand for a car that wasn't worth the 4600.00 that I still owed on it.

Thanks,
Bill

[racer72]

Judgments are good for 7 years and can be renewed as required. The maximum interest rate allowed is 12% per year.

[thejavabuddha]

What does "renewed as required" mean?

[ForFun]

Assuming racer72 is correct, you're lucky that you aren't being asked for more.

$4600 x 12% = $552

So your judgment costs you $552 per year (fortunately for you, I don't think compounding is allowed).

Multiply $552 by 9 years, and you have $4968 just in interest alone!

[CraigFL]

In florida you can renew them up to 20 years total which means two renewal(plus the original). I'm just getting ready to renew some of mine so that the deadbeats still know I'm around and am able to collect!

[porcelina68]

Originally Posted by thejavabuddha

What does "renewed as required" mean?

It means that if almost 7 years has passed and they don't have their money, they can renew it with the court. Which they will do, until the debt is paid.

[racer72]

Originally Posted by porcelina68

It means that if almost 7 years has passed and they don't have their money, they can renew it with the court. Which they will do, until the debt is paid.

Correct. Georgia allows judgments to be renewed every 7 years and they can be renewed multiple times.

[thejavabuddha]

Ok, so that being the case, what do you all think my chances are of settling for somewhere close to what I actually owe (somewhere <$5000). I'm not worried about the mark comming off my credit...it's almost 10 years old now, but since they're working on garnishing my wages I'm wondering how much leverage I have.

[ForFun]

Originally Posted by thejavabuddha

Ok, so that being the case, what do you all think my chances are of settling for somewhere close to what I actually owe (somewhere <$5000). I'm not worried about the mark comming off my credit...it's almost 10 years old now, but since they're working on garnishing my wages I'm wondering how much leverage I have.

Probably not very good if you have the means to pay it all. They'll be able to garnish your wages or put a lien on your house (if you now own one), etc.

I do want to point out one thing with regard to this quote: "what do you all think my chances are of settling for somewhere close to what I actually owe."

You actually owe $9900, not 4600. Borrowing money is not free, and neither is loaning it. Had you paid the $4600 9 years ago, the creditor could have used it for profit (invest it, loan it to another borrower) or to reduce it's own debts (pay down its own interest bearing business loans). In short, over the last 9 years, you cost them much more than $4600. Just some food for thought...