Creditor attempting to file for wage garnishment YEARS after I paid the debt!

[indebtedwombat]

What is the name of your state? Indiana

I was sued back in 2014 and I made a payment arrangement with an agreed judgment. I have case alerts set up and I just got one saying that a Motion for Proceedings Supplemental was filed and then another one stating that a Proceedings Supplemental has been scheduled for next month. They have an old address on file (like 3 addresses ago) so no idea if they've tried to contact me prior to this.

I paid this debt according to the agreement (which was $100/month for 24 months) and I have bank records to prove it (my bank records actually show that I made extra payments, probably due to the case changing law firms so many times) as well as a few statements showing that I was making payments that the law firm sent when the case changed to a different law firm. It's changed hands at least 2 or 3 times since 2015.

What would be the best way to go about this? The initial agreed judgment stated that *they* are supposed to file a release of judgment when I completed making payments but they never did.

Should I mail them my proof of payments and request that they cancel the proceedings supplemental and file the release of judgment? Or is there something else I should do?

I'd really like to avoid going to court, especially in the midst of a pandemic.

 

[quincy]

What is the name of your state? Indiana

I was sued back in 2014 and I made a payment arrangement with an agreed judgment. I have case alerts set up and I just got one saying that a Motion for Proceedings Supplemental was filed and then another one stating that a Proceedings Supplemental has been scheduled for next month. They have an old address on file (like 3 addresses ago) so no idea if they've tried to contact me prior to this.

I paid this debt according to the agreement (which was $100/month for 24 months) and I have bank records to prove it (my bank records actually show that I made extra payments, probably due to the case changing law firms so many times) as well as a few statements showing that I was making payments that the law firm sent when the case changed to a different law firm. It's changed hands at least 2 or 3 times since 2015.

What would be the best way to go about this? The initial agreed judgment stated that *they* are supposed to file a release of judgment when I completed making payments but they never did.

Should I mail them my proof of payments and request that they cancel the proceedings supplemental and file the release of judgment? Or is there something else I should do?

I'd really like to avoid going to court, especially in the midst of a pandemic.

Have you satisfied the judgment (paid it off in full) or is there a balance remaining to be paid?

If you have paid it off in full, you can file your own satisfaction of judgment if the judgment creditor failed to do this.

 

[indebtedwombat]

Have you satisfied the judgment (paid it off in full) or is there a balance remaining to be paid?

If you have paid it off in full, you can file your own satisfaction of judgment if the judgment creditor failed to do this.

The agreed judgment (which I do have a copy of) was $2400 paid in $100/month payments for 24 months. I looked through bank statements and I counted 29 payments of $100 so I actually overpaid. I had my bank make the payments via the billpay feature so I don't have any cancelled checks but I have the bank statements showing ACH trace numbers and I have 2 statements from the law firm showing payments. One shows 8 payments and one shows 9 payments, the dates are slightly after the dates on my bank account.

I also have a copy of a letter from the second law firm confirming that the settlement was $2400 and that I had been paying. I have had NO contact with the newest law firm but it could be that they were sending letters to the old address.

Do you have any suggestions on how to file the satisfaction of judgment? I found a form for a different county in Indiana but I don't know if that would work here.

 

[adjusterjack]

I just got one saying that a Motion for Proceedings Supplemental was filed and then another one stating that a Proceedings Supplemental has been scheduled for next month.

You might not be able to avoid court since the motion has already been filed with the court.

You could start by contacting the lawyer who filed the motion and make an appointment to bring him/her copies of your records and get a dismissal and satisfaction of judgment. If you don't get written cooperation within a few days, you'll need to file your own response with the court.

Meantime, if you have just been looking at the docket, I suggest a visit to the courthouse so you can get copies of whatever's in the case file.

 

[indebtedwombat]

You might not be able to avoid court since the motion has already been filed with the court.

You could start by contacting the lawyer who filed the motion and make an appointment to bring him/her copies of your records and get a dismissal and satisfaction of judgment. If you don't get written cooperation within a few days, you'll need to file your own response with the court.

Meantime, if you have just been looking at the docket, I suggest a visit to the courthouse so you can get copies of whatever's in the case file.

The question is do they have to serve notice for this? I no longer live at the address listed on the docket so if they do, that buys me some time. I only know about the case because I have an account on doxpop and set up alerts on cases associated with me. So I know about the case but they don't know I do. Also, the proceeding is late in the month, almost a month from today so I do have some time to work with.

The lawyer lives in another state, about 2 hours away. Would sending the info via certified mail work instead?

Good idea on getting copies of files. I have next Tuesday off so I'll swing by then and get copies.

 

[quincy]

Here is a link to Indiana Rules of Trial Procedure, Rule P.58 - see P.58(D):

https://casetext.com/rule/indiana-court-rules/indiana-rules-of-trial-procedure/judgment/rule-58-entry-and-content-of-judgment

 

[indebtedwombat]

Here is a link to Indiana Rules of Trial Procedure, Rule P.58 - see P.58(D):

https://casetext.com/rule/indiana-court-rules/indiana-rules-of-trial-procedure/judgment/rule-58-entry-and-content-of-judgment

Thank you! I didn't pay through the clerk but if I'm reading correctly, a verified request from me is sufficient. Do I send proof with my request?

 

[quincy]

Thank you! I didn't pay through the clerk but if I'm reading correctly, a verified request from me is sufficient. Do I send proof with my request?

You can check that out with the court clerk.

 

[adjusterjack]

Thank you! I didn't pay through the clerk but if I'm reading correctly, a verified request from me is sufficient. Do I send proof with my request?

I think you are getting ahead of yourself. The title of your post is "Creditor attempting to file for wage garnishment." A judgment debtor typically does not get notified of a wage garnishment until the writ of garnishment is served on the employer and a payroll deduction is started before you can do anything.

What, exactly, is that Motion for Proceedings Supplemental doing? If I had to take a wild guess I would guess that next month's "proceedings" is a Debtor Examination where you will be under oath and have to reveal your income, assets, bank accounts, and employment. Is that what's happening?

If it is, then attempting to file a satisfaction of judgment isn't going to accomplish anything. You have to file a response to the Motion for Proceedings Supplemental asking that it be denied and the "proceedings" cancelled because you've already paid the debt as agreed. Along with that you ask for the court to issue a Satisfaction of Judgment when you have presented your evidence of payment.

 

[zddoodah]

I made a payment arrangement with an agreed judgment.

. . .

I paid this debt according to the agreement (which was $100/month for 24 months) and I have bank records to prove it

You still have these records from 4-6 years ago? Good for you. Once you had completed your payments, did you receive from the creditor a satisfaction of judgment and file it with the court? Sounds like the answer is no.

What would be the best way to go about this?

To go about what? If I were you, I'd call the creditor's attorney and ask what's going on and why.

The initial agreed judgment stated that *they* are supposed to file a release of judgment when I completed making payments but they never did.

And...you never followed up to make sure this got done, right?

Should I mail them my proof of payments and request that they cancel the proceedings supplemental and file the release of judgment? Or is there something else I should do?

I'd pick up the phone.

Do you have any suggestions on how to file the satisfaction of judgment?

You need to obtain this from the creditor's counsel of record. The lawyer can file it or he/she can send it to you to be filed.

The answer to pretty much all of the other questions you asked is: pick up the phone and call the lawyer.

What, exactly, is that Motion for Proceedings Supplemental doing? If I had to take a wild guess I would guess that next month's "proceedings" is a Debtor Examination where you will be under oath and have to reveal your income, assets, bank accounts, and employment. Is that what's happening?

Seems that you are correct.

 

[indebtedwombat]

What, exactly, is that Motion for Proceedings Supplemental doing? If I had to take a wild guess I would guess that next month's "proceedings" is a Debtor Examination where you will be under oath and have to reveal your income, assets, bank accounts, and employment. Is that what's happening?

If it is, then attempting to file a satisfaction of judgment isn't going to accomplish anything. You have to file a response to the Motion for Proceedings Supplemental asking that it be denied and the "proceedings" cancelled because you've already paid the debt as agreed. Along with that you ask for the court to issue a Satisfaction of Judgment when you have presented your evidence of payment.

I don't know because I have not been served yet. I only know about this because I have an alert on doxpop. I won't know for sure until I go to the courthouse and ask for a copy of my file. The address they have for me is very old and I've moved 3 times since I lived there.

Do you think a better route would be to contact the law firm and try to get this settled prior to the proceeding date?

I have paid this already and it's very frustrating that they're trying to get more money out of me.

 

[indebtedwombat]

You still have these records from 4-6 years ago? Good for you. Once you had completed your payments, did you receive from the creditor a satisfaction of judgment and file it with the court? Sounds like the answer is no.



To go about what? If I were you, I'd call the creditor's attorney and ask what's going on and why.



And...you never followed up to make sure this got done, right?



I'd pick up the phone.



You need to obtain this from the creditor's counsel of record. The lawyer can file it or he/she can send it to you to be filed.

The answer to pretty much all of the other questions you asked is: pick up the phone and call the lawyer.



Seems that you are correct.

Thank you.

No, they never sent me anything to file with the court. I will look through my files but I don't think I have anything from them saying that I was done paying but I did make all of the payments according to my bank records. They were made electronically with my bank's bill pay feature.

Everyone always says to do things by mail when dealing with creditors because it creates a paper trail. That's why I asked if I should mail them my proof. I am nervous about calling and getting them to agree to something and then they don't follow through.

No, I never followed up because I didn't realize I needed to. I realize now that I made a mistake.

Why did they never contact me if they thought I still owed money? They should know better, I'm just a regular person with no legal training.

 

[zddoodah]

Everyone always says to do things by mail when dealing with creditors because it creates a paper trail. That's why I asked if I should mail them my proof. I am nervous about calling and getting them to agree to something and then they don't follow through.

No, "everyone" does not say that. As I indicated, if I were in your position, I'd start the process with a phone call. That doesn't mean there won't be more to the process, including written communication.

 

[quincy]

Thank you.

No, they never sent me anything to file with the court. I will look through my files but I don't think I have anything from them saying that I was done paying but I did make all of the payments according to my bank records. They were made electronically with my bank's bill pay feature.

Everyone always says to do things by mail when dealing with creditors because it creates a paper trail. That's why I asked if I should mail them my proof. I am nervous about calling and getting them to agree to something and then they don't follow through.

No, I never followed up because I didn't realize I needed to. I realize now that I made a mistake.

Why did they never contact me if they thought I still owed money? They should know better, I'm just a regular person with no legal training.

I think you are smart to communicate in writing, although you can call and then follow up the call with a letter that summarizes your phone conversation. Be sure to get the name or names of everyone you speak to.

 

[indebtedwombat]

No, "everyone" does not say that. As I indicated, if I were in your position, I'd start the process with a phone call. That doesn't mean there won't be more to the process, including written communication.

I guess I shouldn't say every person but a large percentage that I've seen speak about debt collection have said to never talk to debt collectors, even lawyers who work for debt collectors.

I took your advice and called. Both lawyers listed were out of the office so I spoke to a collection representative and he told me I still owed over $1000. I explained the situation and he asked me to send in the documents I had because they didn't have anything on file stating that I had an agreement. I got the address and will be sending it in tomorrow via certified mail with return receipt.

Hopefully this will be quick and painless to get fixed.