Bank account blocked by debt collection company

[tessny]

What is the name of your state? New York
Over this past weekend my bank account was blocked by a debt collection agency/ law firm - the bank was a bit unclear exactly who was the primary mover in this ( I know my credit card debt was sold). I never received a summons or a phone message saying there was going to be a court case - obviously now I think that a court case must have taken place and a judgement must have been entered against me - I am asking advice on how to handle this. The debt is roughly 3500. Since my bank account was emptied I have nothing - absolutely no money to see a lawyer. I want to pay off the debt but I just do not have the resources to do it right now. I had been concerned with paying off other debt because I had thought that the statute of limitations had passed on this credit card bill so it could be a lower priority. I just want some advice on what to say to this law firm. Also, how do I find out if there was a court case about me - and would it be possible to unfreeze my bank account? I truly am at a loss and would really appreciate any advice

[Ladynred]

First thing tomorrow morning, call your local courthouse and find out if there are any judgments on file against you. Obviously there is one somewhere. If you've moved since you stopped paying the debt, check with the courthouse in your previous locations too.

Once you find where the judgment is, get a copy of the judgment case file from the court clerk. In there will be all the details, including a proof of service showing where, when how, and to whom the summons was served.

Some collection agencies/lawyers are well known for their use of phoney or ancient addresses to serve people so they can easily win a default judgment.

You will not get the account unblocked until the judgment creditor has been paid in full.

When was the last time you paid the original creditor ?? SOL in NY is 6 years.

[tessny]

I will go to the courthouse tomorrow - do I just ask for the records department ?- I assume i will need proper ID. About the SOL I think it has probably been at least 6 years since I made a payment to the original credit card company but I noticed when i looked at my credit report tonight that the account was not officially closed till 2002 - and that it was written off as bad debt - the collection agency evidently bought my debt in 2004.On a legal aid site I saw directions on how to challenge a judgement - what are the ramifications of doing this and loosing - I am nervous to challenge the judgement by claiming SOL issues - what if I can not prove this - would the court demand that I pay immediately or be put in jail? Do you think the only way out of this is by seeking out a lawyer? You have no idea how much I really appreciate the advice you have given me - I have been a nervous wreck since this happened

[Ladynred]

Go to the court clerk and tell him/her that you need to find out if there is a judgment against you there and if so, ask for a copy of the case file.

You need to see if you can find out exactly when you last paid the original creditor. Unfortunately, your credit report can only give you a small clue, the charge-off date or the date they show it will drop off your reports. Even those dates may not be accurate. You really need more concrete proof of the dates.

You should first challenge the judgment based on the service of process. If you were NOT served properly, you can appeal on those grounds, and possibly get the judgment set aside. There are a few unscrupulous collection lawyers in NY who make a habit of using 'sewer service' to win a judgment. Challenge the service first.

The ramifications of challenging it aren't any worse than letting it stand. They've already siezed your bank account, they'll come back for more. I would also file a Motion to Quash the bank levy.

would the court demand that I pay immediately or be put in jail?

No and No. Not paying a debt is NOT a criminal offense and debtor's prisons were abolished in the late 1800's.

Do you think the only way out of this is by seeking out a lawyer?

Getting a lawyer would not hurt, if you can find one that will take your case.