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Judgement and bank account garnishment

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MWM

Junior Member
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
 


pojo2

Senior Member
MWM said:
but not trying to dodge a debt and I believe hasn't received any information from the credit union.
Regards,

Michael
Yeah right! People just owe 2K and accidently ON PURPOSE forget about it!

With legal fees and interest and past due charges it could easily climb that high in what did you say 11 years. You will probably have to find out what happened in the court where the judgment was gained and then protest that you were never notified. Rather HE will.

Unless someone goes to court when the case came up a DEFAULT judgment is gained and one loses the SOL that could have been brought up and proven at that time. So if he just ignored the summons then he screwed himself.

But it will take some fancy footwork to turn around. Have they actually taken anything from his account yet?
 

Ladynred

Senior Member
. 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.
Because they have a judgment, they can take whatever non-exempt assets they can get their hands on and bank accounts are the first target.

However, if his bank account contains ONLY Social security funds, that money is exempt, they can't keep it. The problem is they'll grab first and he/you will have to prove the money they took is exempt.

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.
It IS a long time and if he'd received the summons he could have claimed the expired SOL (4 years in TX if he's IN TX) and avoided the judgment completly. Now that they HAVE the judgment, its good for eternity in TX.

IS your father a TX resident ?? What you need to do is go to the courthouse and get a copy of the judgment case file. Find out EXACTLY what, when, where and to whom the summons for the lawsuit was served.

One more thing.. they don't WARN you first that your bank account will be levied.. they take it first and then tell you they did it. Has your father checked his bank account since he got that letter ??? Chances are the money is already gone.
 

MWM

Junior Member
Thanks guys. Thanks for the info and good advice. I'll check it out. He lost his job, had to move, lost his wife, and got injured and had to have major back surgery all in about a span of two years so pretty much anything that was going on during that time didn't get done.

Once he moved back to Texas and closer to me things have been fine. This was just a surprise and I wanted to make sure everything was done legally and what his rights were at this point. If it looks like it is solid, which I'm assuming it is, I'll just pay it off. I was just primarily concerned with legal action going on concerning my father without much due diligence to include my father in the process. Although he may have been notified and just didn't understand, thought it was junk mail, or just ignored it. At no other time though has he skirted any debt, which is why this has me scratching my head. The advice to go to the courthouse is a great start.

Thanks for the replies. It is great to get some insights and perspective from those more knowledgeable than myself. And the price was fantastic. I appreciate ya'll. Take care and have a great week.

Regards,

Michael
 

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