What is the name of your state? TX
My father recently received a letter in the mail regarding a $2000 personal loan he took out in 1994 from his credit union. The company went out of business and he moved out of state for a few years and I guess he forgot to notify the credit union of a change of address or something.
Anyway, the letter indicated that he had a judgement against him in the amount of $12,000 and that they would be garnishing his bank account immediately.
Now since he didn't pay the loan amount, I have no problem picking up the tab on principal and fair interest. My question is how a company can get a judgement against you and authority to go into your bank account and just take what money you have. Especially since he lost touch with them and they lost touch with him and he says he hasn't received any information regarding any legal action, collection attempts, or anything else or he would have made payments and took care of it ages ago. He is forgetful, but not trying to dodge a debt and I believe hasn't received any information from the credit union. They obviously tracked him down though finding him now.
He hasn't worked in three years (aircraft industry), and the only money he has now is Social Security, 401k money and death benefits from my mother. I was wondering if he had any rights, protections for the above incomes, or courses of actions to take from here. A judgement letter sounds final. I'm also wondering if there is a statute of limitation for a debt. 11 years sounds like a really long time to have a loan be in default before you finally take action to collect.
Thanks in advance for any insight and advice. Take care.
Regards,
Michael
My father recently received a letter in the mail regarding a $2000 personal loan he took out in 1994 from his credit union. The company went out of business and he moved out of state for a few years and I guess he forgot to notify the credit union of a change of address or something.
Anyway, the letter indicated that he had a judgement against him in the amount of $12,000 and that they would be garnishing his bank account immediately.
Now since he didn't pay the loan amount, I have no problem picking up the tab on principal and fair interest. My question is how a company can get a judgement against you and authority to go into your bank account and just take what money you have. Especially since he lost touch with them and they lost touch with him and he says he hasn't received any information regarding any legal action, collection attempts, or anything else or he would have made payments and took care of it ages ago. He is forgetful, but not trying to dodge a debt and I believe hasn't received any information from the credit union. They obviously tracked him down though finding him now.
He hasn't worked in three years (aircraft industry), and the only money he has now is Social Security, 401k money and death benefits from my mother. I was wondering if he had any rights, protections for the above incomes, or courses of actions to take from here. A judgement letter sounds final. I'm also wondering if there is a statute of limitation for a debt. 11 years sounds like a really long time to have a loan be in default before you finally take action to collect.
Thanks in advance for any insight and advice. Take care.
Regards,
Michael