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.