If a creditor is contacting you about payments on a debt, then at first, you need to check whether or not the Statute of Limitations (SOL) on that debt has expired. The Statute of Limitations or SOL is the time period when a creditor or a collection agency (third party debt collector) can file a lawsuit and seek a judgment against you to recover the unpaid debt balance. For example, in New York, the SOL for filing a lawsuit on a credit card debt is 6 years starting from the date of default, which is the date of inactivity. However, the SOL on a store card in New York is only 4 years.
Even if the SOL on a debt expires, you're legally obligated to repay the debt. However, after the expiration of SOL, the creditor cannot file a lawsuit against you.
What is meant by the SOL on a judgment?
The SOL on judgment is the time period when a creditor can collect the judgment that has been granted by the court against the debtor. As a debtor, you are not obligated to pay the judgment once the SOL on the judgment expires. The SOL varies from one state to another. For example, the New York SOL on a judgment is 10 years, whereas the SOL in Alabama is 20 years. In New York, the creditor can even charge an 8% interest rate on the judgment.
How can a judgment be enforced?
A judgment is enforced by using the debtor's property to pay the unpaid balance amount. First, the creditor has to obtain a Writ of Execution. A Writ of Execution is a court order that directs the local sheriff or other official to seize your property. Seizure of property may comprise any personal property or vehicle owned by you, real property that is not secured by a mortgage, or the money in your bank account.
A judgment is usually enforced by the public sale of your property. However, in order for the property to be seized and sold, a court order is necessary. Some states exempt the debtor's home from being seized and sold.
When a creditor or a debt collector wins a judgment against you, they might be allowed to garnish your wages until the outstanding balance is paid off. Once a creditor gets an Order for Wage Garnishment, the creditor will present the order to your employer so that a certain amount of your wages every month is paid to the creditor.
The limitations on wage garnishment vary in each state. In New York, the maximum recoverable amount is 10% of the debtor's gross income or the federal maximum, whichever is less. The federal maximum amount that may be garnished from a debtor's paycheck is 25% or 100 times the federal minimum wage. The Statute of Limitations on enforcement in a credit card debt collection case is 6 years. You can avoid wage garnishment by liquidating your assets and paying back the amount you owe to your creditors.
Moreover, a judgment obtained in one state can be enforced in other states. Under Federal law, the creditor must seek a judgment against you in the state you currently live in with the intent to remain. However, even if the credit card company sues you in one state, the state court can apply the law of the state specified in the credit card agreement. Which state's SOL will be applied to the case depends on the law of the state where the case is being heard. If you want to know more about this issue, then you should consult a consumer rights attorney in your state.
Can a judgment be renewed?
After receiving a judgment, the creditor may renew it for one or more times, thus increasing the time limit to collect the judgment. However, the renewal period may differ from one state to another, depending on the law of the state where the judgment has been issued. To renew a NY SOL on a judgment, the creditor has to apply for the renewal within 1 year prior to the expiration of the judgment.
Once creditors get a judgment, debtors will have to pay it. The former can renew the judgment every so many years to keep it current. Iit is better to not keep any extra money in bank accounts because creditors may take it.
The fact is, if debtors don't attend court hearing regarding the judgment, then creditors get a default judgment and they can enforce this for as long as it takes to clear the debt up.
Statute of Limitation in New York is 10 years for judgments.If a creditor is willing to lower the payoff amount, the debtor should ask the creditor for a written agreement and pay off the debt; else the creditor may be able to garnish the debtor's bank account if he has the judgment order with him.
Expiring NY judgement
How do I go about renewing a judgement?
I would imagine if you yourself are trying to renew a judgement you would have to go to the courthouse and file the appropriate peperwork to have it renewed. You may only have a certain amount of time that you can do this in so you may want to call or visit your local courthouse to find out what exactly you will have to do.
That is exactly right fireyone, they do have expirations on them and have to be renewed each time it is running out. You must go before the expiration and renew it.
JUDGEMENT IN NEW YORK STATE
IF THERE IS A JUDGEMENT AGAINST YOU FROM 1996 IS THIS JUDGEMENT STILL IN PLACE IF YOU NEVER HEARD FROM THEM?
Hi Sandra
Yes, if there is judgment against you by a creditor in 1996, they can recover the debt anytime within the Statute of Limitation period. Judgments have its own SOL and it varies from 3 years to 20 years depending upon the state where the judgment was passed. Since the judgment was passed in 1996, it may not show in your credit report because judgment stays on your report for seven years from the date it has been passed.
JUDGEMENTS IN NYS
A JUDGEMENT PAID OR UNPAID STAYS ON YOUR REPORT FOR 7 YEARS.
A JUDGEMENT IS GOOD FOR 20 YEARS BUT IS NOT RENEWABLE. KEEP YOUR MONEY OUT OF CHECKING ACCOUNTS. START A CORPORATION AND USE THAT ACCOUNT TO PAY YOUR BILLS ETC. IF YOU DON'T HAVE YOUR OWN BUSINESS INC YOURSELF USING YOUR NAME.
Confused 10 years or 20 years on judgment
I have a money judgment against me and my only income is social security. Can my car which was purchased with my social security payments be taken from me? The value of the car is approximately $2,500.00. Please note the judgment was filed in June of 1998.
It depends on where you are from, if you list what state you are from I am sure someone here will look up that states statute of limitations for you.
Patricia,
Hello and welcome to the forum. They can not touch your social security wages and most will not bother with a vehicle with only little monetary value. Although I am not positive (maybe someone else will know for sure) I do not believe they can touch your vehicle if it is your only means of transportation. When collecting on a judgement there are a lot of rules and regulations that have to be complied with. Somethings you own like your house also can not be taken.
I would advise listing your state and we can go from there since each state has there own set of rules.
Confused 10 yrs. or 20 yrs.
Dear fireyone:
Thank you for the input. The state is New York and the collection agency claims that in New York State judgments are valid for 20 years. Can you help?
Thank you!
what is the statute of limitation for new york
i went thur a really hard time in 2008, and got into debt, how can i
fix it-? and can i lose my house.
what is the statute of limitation for new york
i went thur a really hard time in 2008, and got into debt, how can i
fix it-? and can i lose my house.
judgement
If a nys supreme court judgement has been issued in 1993 for a student loan that was paid off without receipts. how long is the judgements sol & would the plantiffs have to inform u that they intend to reinstate?
Limitation on a judgement
There was a judgment against me in 1999. The same was not renewed in 2009 and expired. They sent a order to the Bank misrepresenting the date of judgement as 2009 and the bank is holding my money. 1. Can they hold my money after 10 years
2. What can I do as they submitted affidavit with wrong date of the judgement to the Bank. Can I threaten them to withdraw. 3. When I called they told me they did not get the judgement as money judgements are valid for 20 years. Is that true?
Please help me
sol
I was out of the country for 5yrs. when I got back I had a judgement from my creditors... can they put a judgement on me even though i was not present in court? NY State :roll:
reply
Hi,
Your query has been answered to at http://www.creditmagic.org/judgment/abscence-court.html#42388 .
Feel free to discuss if you have any more queries on debt and credit problems.
Regards,
Aaron.
statue of limitations
how can you find out if you got judgements against you?
judgments from credit report
Hi Michael,
To know whether or not a judgment has been filed against you, you can pull a copy of your credit report. If any judgment has been put against you, it will get listed on your credit report.
Hope this helps.
Regards,
Aaron
judgements
what are statuates for albany new york on judgements??
I WAS RECENTLY INFORMED THAT I HAVE A JUDGEMENT FROM 1997 BUT THIS WAS NOT SITED ON MY CREDIT REPORT HOW CAN I GO ABOUT ASSERTAINING THE AMOUNT OF THE JUDGEMENT AND CLEARING IT UP IN NYC
reply
Hi Jon & Joe,
The Statute of Limitations (SOL) on judgment in New York is 20 years. To find out you all details on the judgment, who sued you, and what is the amount owed you need to visit the court, and find it out from the court files.
Thanks,
Aaron
tax lien
removal of paid tax lien from credit report for a nys resident.how many years5,7,10 or 20 years.l
removing tax lien from credit report
Hi wolf,
A paid tax lien will stay on your credit report for 7 years. You can consult a tax attorney for removing the paid lien from your credit report. The attorney will get a legal document for you called Release of Federal Tax Lien. This will have all the details on the lien, and this will have to be signed by an IRS representative as you have made the payments. Then you can use this to dispute the item off your credit report.
Thanks,
Aaron
removing tax lien from credit report
Aaron Thank you
tax lien
Hi Wolf,
You are welcome. If you have further queries, feel free to discuss in the forum.
Thanks,
Aaron
judgement against me
I became disable in 2006 my only means is social security disabilty and partial disabilty from where I worked can they take my only income if it is for disabilty? Is there such a thing as judge over riding their judgement because of my income? state is Indiana. thank you credit card company
old judgement
I have an old judgement from over then years ago. The creditor had published something on a yahoo chat site about the debt to other people. I have read on another web site that they are not allowed to do this. They are acting like a tracer but I know it is just the creditor. what can I do about this and do I have any recourse against them.
Thanks for any help
judgment
Hi worried:
Disability income cannot be garnished. However, I am not sure if the judge will override the judgment because of your income.
kendetko:
Can I know which state do you live in?
I have read on another web site that they are not allowed to do this.
Yes, this is true. The collection agency cannot talk about your debt to others, or make it public.
Thanks,
Aaron
Hi Mate
I suggest you to come for an settlement with creditor otherwise you have to face legal consequences from them .Then the condition would be worse.
judgment
I had a personal judgment against another person. The judgement was never paid. She owes me 1200.00. What do I do. The judgement is 8 years old.
SOL in NY on Money Judgment
My ex was awarded a money judgment in a court decision (not child support) over a year ago. I sent her out this bank check for full amount immediately to her attorney. I assumed this was long ago resolved I just found out, that her attorney & my ex had a fee dispute and would not give my ex these uncashed checks. At same time, despite decision was in her favor, no one ever served me a Notice of judgment. A year after the curts decision, is she still allowed to enter a judgment against me? Also, if so, I have to reissue bank check from a year ago, isn't my ex responsible for my fees to stop & reissue check to her? I had NO knowledge these bank checks were never even cashed all this time.
$4000 Judgement
A judgment was won against me by default. A collection agency filed it 5yrs ago. 6 years will be on 12-12-12. What options do I have. My credit score are within 740- 780.
Late payments
I have been making sparatic payments on 20 some credit accounts for months some of which I did not pay in the last 4-5 months. We went way behind because of hardship. I would like to continue making normal payments on the old due dates, would this help solve some of the debt issues?
Default Judgement
I have seen some obscure references to a judgement that is in default indicating that it can be tripled in size in NY state.
I am holding a default judgement which is not being paid off/
How do I go about this
Status of Limitations California
Would like to find out what the SOL in California is?
ny credit card judgment
judgment is 9 yrd old and off credit report. I believe I paid it but when I called the Attny she indicated her client client closed file but it has not been paid?. I paid by money order 6-7 yrs ago but do not have receipt. I now have to explain it to my Employer. Any suggestions on how to obtain record that I paid this?
Judgment
Hi Carol
I have a judgment against my drivers license place against me by the New York Throughway Authority for an accident for which a guardrail was destroyed. This happen back in 1995 and the judgment was placed a year later.
What is the SOL on that particular judgment. I even tried to search for the judgment by way of an national judgement search engine. What is the best way to proceed
Judgements
What are the rules in the State of New York for credit default judgements, and can they take personal property like electronics or anything of value from your home? Do they do this without warning, like in a raid on your home?
Judgment
My office received a Sheriff order requesting 10% of my salary for a debt. However, I was never notified to go to court. I called the sheriff office and they provided a number (I guess a referrence number). He just said go to court with this number. Can you tell me what is that number and what is the purpose of going to court after this judgment has been served?
NY Judgment
Hello Carol,
In NY, if a creditor wants to renew a judgment, does it have to notify the debtor? Is there anyway the debtor can fight the renewal in court? Also, if a debtor moves out of state during the first ten years of a judgment, is the SOL tolled while the debtor is out of state? In other words, let's say the debtor moved to AZ during year 6 of the NY judgment and lived there for 5 years, then moved back to NY, will there still be 6 years left of to collect the judgment without having to renew it?
How to fight a renewal of a judgement
I have a renewal for a judgement being filed against me. Over the years, I have tried in earnest to negotiate with these people, and they refuse to take any reasonable amounts of money to settle this judgement. what other recourse do I have through the courts to fight this renewal?
judgement renewal - NY
Hi everyone.
I have a VERY LARGE judgment and need a few questions answered...
First I'll give the details...
Judgment expires in November 2012 (10 years) NY state
Name on it is: MY COMPANY NAME / MY NAME (they got my address wrong)
(MY company is 10 years defunct)
(my partner has no judgment against him)
Creditor is: a defunct bank (6 years ago?)
I cannot find and do not not remember getting served - it was a default judgment. I would have answered it (I answered every other one).
I would have fought this one to at least tried have it divided between the two partners)
My questions:
1. Since they never served me can they renew without me knowing?
2. Is there a legal instrument I can get will stop the renewal (of coarse I don't want to rock the boat!!)?
3. I understand SOL (6yrs), but if it is renewed can I go after my crook ex-partner - or is it too late?
4. I understand they have 12 months prior (NY) to the expiration date to
renew - is that true?
5. People have told me to find out what kind of judgement it is - as in lien/judgment etc.. not sure what they mean...any ideas?
I hope someone can help me out,
Thanks in advance!
judgements
if the money in my bank account is seized.Does the creditor have to get another judgement to do same again or will the seizure remain open at the bank and any money deposited will be taken away
I have a judgement dated 1992 in NY. Can they still collect on it?
judgment debt
I'm asking this question hoping that you can help, if not please direct me to someone.
I had a law suit come in about 7 years ago from the electrical union. They forced me to close my business & took me to the cleaners. I or the corp. has a judgment on it not myself but i had to file bankruptcy so the Union can leave me along.
How long do I have to wait in order for the judgment to be over in NEW YORK? How long do I have to wait in order for me to be able to open another Corp.?
Please Help, Thanaks,
Liz
Renewal after SOL as expired
Can a creditor renew the judgement after the SOL as expired? In Oklahoma the SOL is 5years and the judgement was renewed after the SOL had expired. Is that legal?
Nursing Home Suit
My Father was admitted to a nursing home in 1998. A friend worked for a hospital affiliated with the nursing home and got him in. He had Social Security and Black Lung disability from working in the coal mines. He passed away a short time later. The nursing home came after me for payment. I signed many papers, but didn't know I might have signed something making me responsible. I was sued, but never paid. I didn't feel I was responsible. That was 10 years ago. Can they still come after me?
collecting on money judgment
Hi, 9 years ago I was awarded a money judgment against my rental tenant. He skipped town/the state, never paid anything. Hired a lawyer to try to collect, was unsuccessful. I have now found my ex-tenant's new address in TX. Can I try to pursue this again, can his property/wages etc in TX be used to pay off what he owes? Note I am also not a resident of NY, does that matter? Any advice you can give would be welcome, would love to be able to get what he owes for non-payment of rent. Thanks.