Court SOL debt 8/31 & Judgement Question

[christinetokar]

State: MI

About 8 years ago, I gave up paying my credit cards. Lost my job, young and stupid, etc

1) August 31, I am being sued for credit card debt. The item has exceeded the statue of limitations, yet the last transaction date if reflected inaccurately on some of my credit reports because of different creditors buying and selling my file. On the items that I couldn_t get removed, I added a note to the reports stating that I disputed it. I think I am being sued to panic me into settling out of court. I hoped to get the creditor to back down when I send my response to the court and copied the creditor that the item had exceed the SOL and my proof, which is:
a. The paperwork that was submitted to the court reflects the last payment date as 1/18/2000. It_s actually earlier than that, but even so it has exceed the SOL
b. My org. document to the creditor telling them it has exceeded the SOL and to ask for validation (which they never did) the date they started court proceedings shows me that was their response
c. The last summarized bill I ever paid on
Though confident in the beginning, as the date approaches, I am beginning to have doubts_why didn_t they drop the suit?
2) I have a wage garnishment against me, but no record of the judgment in my files. I have changed jobs a few times since then and they have never garnished my wages. This item has now exceeded the SOL, yet I am not sure if that counts anymore. Can this get overturned in some way due to a technicality? I might be able to pay it off soon, if I need to, but I am saving up to buy a home start a family and it would be my whole savings. I think my work is going to start layoffs/downsizing in a few months, and it would take a long time saving that money again.

I need advice on how to handle this from someone who understands the laws better than I do.

[cissycicle]

One of the senior members (LadynRed) is very knowledgeable and is most qualified to guide you. My guess is she will be along soon so hang on.

Things seem grim right now, but once you get accurate advice from "Lady", you will have some peace of mind.

[Debt Guy]

OK, take a deep breath.

Q) August 31, I am being sued for credit card debt. The item has exceeded the statue of limitations, yet the last transaction date if reflected inaccurately on some of my credit reports because of different creditors buying and selling my file.

A. OK.

Q. On the items that I couldn_t get removed, I added a note to the reports stating that I disputed it.

A. Does not help.

Q. I think I am being sued to panic me into settling out of court.

A. Probably correct.

Q. I hoped to get the creditor to back down when I send my response to the court and copied the creditor that the item had exceed the SOL and my proof, which is:
a. The paperwork that was submitted to the court reflects the last payment date as 1/18/2000. It_s actually earlier than that, but even so it has exceed the SOL
b. My org. document to the creditor telling them it has exceeded the SOL and to ask for validation (which they never did) the date they started court proceedings shows me that was their response
c. The last summarized bill I ever paid on


A. They are probably hoping you won't show up for the hearing. If you don't show -- you lose automatically.

Q. Though confident in the beginning, as the date approaches, I am beginning to have doubts_why didn_t they drop the suit?

A. Like I said, they are counting on you being afraid. Think about it -- they have already spent the money to file, etc. They got nothing to lose by hanging in there. If you have filed your response, go ahead and show up for the hearing. Take all your documents with you. Just tell the judge the debt is time-barred. Stand your ground and don't be bull-dozed.

Q. I have a wage garnishment against me, but no record of the judgment in my files.

A. Go the courthouse and ask to see the judgment file. Read it thoroughly -- especially the affidavit and proof of service.

Q. I have changed jobs a few times since then and they have never garnished my wages.

A. Just means they cannot find you and does not mean they have given up.

Q. This item has now exceeded the SOL, yet I am not sure if that counts anymore.

A. Judgments have SOLs that are unique to judgments. In Michigan a judgment is good for 10 years from the date awarded and can be renewed.

Q. Can this get overturned in some way due to a technicality?

A. The only technicality would be if the service was faulty. But, even then you are only allowed a limited period of time to file a motion to vacate the judgment. My guess is that you are too late.

Q. I might be able to pay it off soon, if I need to, but I am saving up to buy a home start a family and it would be my whole savings. I think my work is going to start layoffs/downsizing in a few months, and it would take a long time saving that money again.

A. All things considered, judgments last a really long time and will jump up and bite you when you least expect it. A wage garnishment or a bank levy will just come out of the blue. Also, buying a home could be a problem. The lender will probably insist you make the judgment go away. You probably don't have to "pay it off" -- play your cards right and you can settle the judgment for less than the amount owed.

Q. This was very hard to write, I broke down and cried a few times because I am so stressed out. Yet, I wanted to capture the experience because I have done so many web searches and I can_t seem to find answers. If anyone can learn anything from the threads of this letter, it would make me feel good. I am sure that I am not alone in this experience!

A. You did fine. Don't beat yourself up so much.

You should consider bankruptcy. My guess is that you will meet the income test. Bankruptcy could give you a clean start and make all the old debt issues -- including the judgment -- go away. Talk to a bankruptcy lawyer -- any old one out of the phone book is fine -- most will give you a free 30 minute consultation to answer your questions and will tell you whether bankruptcy makes sense or not.



NOTE TO CISSY:

I commend your emphathy for the OP. But, that is best handled by a private message. When people cruise the message board (especially those of us who answer a lot of questions) we don't have time to read every single post. So, we look for the subject and look to see if anyone has responded. When I first saw this post, I assumed the question had already been answered and passed it by. I am sure LNR did the same. Just by luck did I happen to open the post. The OP almost did not get an answer because you jumped in.

[Ladynred]

I could not agree more with everything DG said. Sorry I didn't see the post sooner.

[christinetokar]

Thank you for helping with clarity - about everything!

I was in a real mood when I wrote all of that, and definatly should of edited it.

Pretty much what I thought, but I am relieved about the court thing.