It's been a while since I been here and I glad this board is still here! My story is kind of long so bear with me... I have a close friend who has come into a financial problem of sorts. He was in court with his former car finance company for over two years disputing the amount of money that was paid to a third party by the finance company. They paid an exorbitant amount of money according to the invoice that was submitted to them by this third party - and this invoice was not signed by my friend. The finance company paid the bogus bill and then repossessed the car and auctioned it off. My friend sued the third party for the value of the car and won. When the finance company found out that my friend won his case, they came after him for the amount they paid to the third party plus attorneys' fees, car note fees and repo fees. My friend disputed the amount owed and said that exorbitant bill should not have been paid since he never authorized for the work to be done on the car. They went into mediation after numerous court appearances and the mediator sided with my friend stating that both sides were losers and only monies that were owed to the finance company was the car note fees. To recoup the money, the finance company should sue the third party. I guess since the mediator didn't side with them, the finance company's attorneys refused. The mediator told my friend that the company was just being nasty. Afterwards the finance company went and got a summary judgment against my friend - I assume because the judge was leaning towards my friend and the judge told the finance company to go back to the drawing board and come back. Anyway, the finance company went for a summary judgment and it was granted without my friend being there to argue his case. When his attorney advised him try to fight the summary judgment, he told him that he may not win and the judgment will double and he didn't say that the judgment could be vacated. Since he didn't have the money to put up and didn't have any more money to pay his attorney, he gave up. The finance company froze his accounts may have captured less than $20-that was in late 2002. He knew that he had a judgment on his credit report and that it would be on there for 10 years and renewable for another 10. He resided to that. Fast forward to now, my friend goes to the bank to pay some bills and realize that his accounts are frozen again by the same finance company. He is not even fighting the judgment at this point. He just wants to pay the amount that the mediator said was actually owed-the car note fees. He has bills and a family to support so my questions are: 1. Could he have fought the summary judgment pro se back then? And could he fight it now? 2. Can a creditor freeze an account twice for the same debt? 3. Does SOL apply to judgments? I live in NYC so I know that the SOL in NYS is 6 yrs. 4. Does he have any recourse? Any comments, suggestions would be greatly appreciated!
Welcome back Trilivonel! We're bumping the thread for you in hopes that some of our more legal-minded members might chime in and help.
That's a question the answer to which isn't certain. It depends on his legal skills and whether or not he knew how to respond back then. Theoretically he could have fought the summary judgment pro se back then. Practicality might be a totally different matter. The answer is the same as above but he will have a greatly diminished chance to fight it now than he had back then. I don't see why not so long as the creditor has a court order allowing them to do so. In most states they must apply to the courts each time they wish to freeze. Where did you ever get that idea? Apparently you don't know what NY law has to say about that because you are very wrong. Here is the applicable law on judgments in NY. A money judgment obtained in the State of New York is generally enforceable for a period of twenty (20) years. (Chptr. 8, Art. 2, Sec. 211, New York State Consolidated Laws.) It may be enforced against any property which could be assigned or transferred, whether it consists of a present or future right or interest and whether or not it is vested, unless it is exempt from application to the satisfaction of the judgment. A money judgment entered upon a joint liability of two or more persons may be enforced against individual property of those persons summoned and joint property of such persons with any other persons against whom the judgment is entered. (Chptr. 8, Art 52, Sec. 5201, New York State Consolidated Laws.) In general, ninety per cent (90%) of the earnings of the judgment debtor for his personal services rendered within sixty days before, and at any time after, an income execution is delivered to the sheriff, is exempt from execution of a money judgment. (Chptr. 8 Art. 52, Sec. 5205(d), New York State Consolidated Laws.) A money judgment generally may become a lien against the real property of a judgment debtor either from the time of the docketing of the judgment with the clerk of the county in which the property is located until ten years after filing of the judgment-roll, or from the time of the filing with such clerk of a notice of levy pursuant to an execution until the execution is returned. (Chptr. 8 Art. 52, Sec. 5203, New York State Consolidated Laws.) The State of New York permits Confession of Judgment. A debtor may execute an affidavit stating the sum for which judgment may be entered, authorizing the entry, and stating the county where he resides, or if he is a non-resident, the county in which the judgment may be entered. The judgment may be docketed and enforced in the same manner and with the same effect as a judgment in an action in the supreme court. No judgment by confession may be entered after the defendant's death. (Chptr. 8, Art. 32, Sec. 3218, New York State Consolidated Laws.) ] Yes, he has several but I'd have to know much more about his situation than you have told us here. They won't be pretty and they won't be cheap but there are things that can be done to protect his assets from further actions by the judgment creditor. One of those things is to just quit doing business with any local banks. The rest of his possible remedies involve really black hat methods which I won't go into here.
thanks for the info. I dunno why I put 6 yrs SOL for judgments because I've been on this board for years! Sorry about that! Anyway, he's been in contact with the attorneys for the car finance company and the partner states that he closed the case in 2004 and he doesn't know who re-opened it. He referred my friend to one of his associates who claims that he doesn't know who re-opened the file and he doesn't have a copy of the file and for my friend to fax to him the proof that he doesn't owe the amount that was awarded in the summary judgment. How can no one not know who went to court to get another information subpoena and lien order?? On the information subpoena sent to him there is a list of exemptions and he qualifies for two - unemployment benefits and income within the past sixty days. The attorney claims that if his bank, JP Morgan Chase (predators, I know!), read the notice they sent to them, that they shouldn't have put the lien on the account if they would have checked his deposit history. Whatever. So what would be his next steps? Should he send the info onto the plantiff's attorney or should he go to court pro se?
Head in the sand playing Ostrich?? (LOL) I'd say so. Might save him some trouble Probably that too, depending on whether or not he knows how to go about doing that.
Judgment from 2002 (update) My friend decided to not fight the judgment in court and just let the finance company get some of the money. He found out that since he has earned income within the past 60 days, the creditor can only get 10% of the money (according to New York State Law). So he faxed to his bank, Chase (I swear I can't stand that bank!!!!) and the creditor's attorney his exemption form so I guess it is a waiting game now. But the funny thing about it is, that when he called the bank to confirm receipt, he spoke to a supervisor and she said that the money he has in the bank is not earned income because the monies in his account did not have the other exemptions included in it. According to the exemption claim form sent to Chase by the creditor's attorney, (and they forwarded it to him), the list of funds that are exempt are: Social security Social security disability (SSD) Supplemental security income (SSI) Public assistance Wages while receiving SSI or public assistance Veterans benefits Unemployment insurance Payments from pensions and retirement accounts Income earned in the last 60 days (90% of which is exempt) Child Support Spousal support or maintenance (alimony) Workers' compensation Railroad retirement or black lung benefits Other (describe exemption). He receives unemployment but it is not directly deposited-it is put on a check card and he puts the funds in the bank when he pays bills but currently none of it is in there. The funds in the bank is his severance package and accrued days owed him when he was laid off. Would you believe that a supervisor in the legal department tried to tell him that social security and unemployment is earned income when on the IRS website it is specifically stated that it is NOT earned income?? I can't believe that Chase is a multi-billion dollar corporation and their people don't even know the difference between earned income and unearned income! Then when he tried to explain to her the difference, she gets unprofessional and tells him that the form is going to be denied and that she has the power to deny it. I thought the only person who can do that is the creditor's attorney?! And she also said that the lien can be held on his account indefinitely when another person in the same department told him the day before that once he submits the exemption form, if the attorney does not respond within 8 days, the bank will automatically release the hold. All of this conflicting information from one entity. Unbelievable! The one thing that I learned from this board years ago, (I am grateful for it) was that Chase is a known predator and don't care about the average working person. I told him to close his accounts with them as soon as this matter is solved. Any thoughts/comments on his next steps?
