I received a letter from a lawyer here in Alaska stating he was collecting for a judgement against me from New Mexico 6 years ago. I did not know I had a judgement for 1 yes it was my cc the judgement was for 16574.33 dollars on a 9456. They put the interest rate at 23.99 % ( this was all included in the letter from lawyer) till paid in full. Well the lawyer says I now owe 39,159.41 I don't have the money to pay this all off at once. What are my chances of getting the amount reduced. How much do they really accept for the down payment if I'm able to set up a payment plan and how much a month will they ask for? Last but not least would bankruptcy be a choice. I can probably give 2 thousand down.
Did the judgement ever show up on your credit reports? If so, did it just recently fallen off? I'm just curious. Just because it isn't showing up on your credit reports doesn't mean the debt is gone forever. The judgement creditor can still pursue the debt, and it's actually quite easy to keep renewing uncollected judgements in most states. Were you ever properly served when BofA sued you for this debt? If not, you may want to speak with a good BK lawyer regarding your options to vacate the judgement. BK could eventually be a good option for you too, but I'm not a lawyer and certainly don't have enough info. here to make a call on that. Judgements, however, can be included in a BK, if that's what you're wondering.
Thank you that was part of what I was wondering about. The answer to your questions are no it has never been on my cr that I have seen,that is why I never knew about it. I remember being served and contacting the lawyer to set up repayment but never heard back after are that. I being a idiot never realized it did go to court. My main question I guess is there a chance to get it down to the 16574 dollars and not have to pay back 39,159.41. The lawyer stated he wants to work something out and not garnish my wages or bank account. I have not gave him a answer yet I wanted to know where I stand first.
Unless you have significant non-exempt assets which you'd lose in bankruptcy, I'd say that bankruptcy is probably your best bet for dealing with this "zombie debt". Of course, I am not an attorney, and I don't have knowledge of your complete financial picture, so I can't say this with absolute certainty. But if this debt is as overwhelming as it sounds to you, then I'd certainly look into setting up some free consults with bankruptcy attorneys in order to find out if bankruptcy is right for you.
Hi For your debt total the interest rate used 23.99 is within the law for the state of New Mexico, so total amount due is within reason. Had this not been a written contract (CC) the maximum interest that could have been charge is 8.75. Requirements for a motion to vacate due to improper service vary from state to state, most states require the motion to be filed within one year of judgment – but you stated you received the summons and inquired about a settlement but for whatever reason there was a failure to follow through. I am looking at it this way… Was a default judgment truly entered? Have you contacted the court in New Mexico to verify case number and if a judgment was entered and most importantly filed? Check the letter from the lawyer try to locate a case number, and/or what court the summons/judgment came from. If I am reading this correctly you now reside in Alaska, correct? If so, do you have proof that your judgment has been transferred to Alaska in order for the Alaskan lawyer the legal right to collect? Try to gather legal documents prior to speaking to this Alaskan lawyer firm about any settlement offer. In the meantime; ask for a validation of debt from the Alaskan lawyer, as BCohen said this is a zombie debt most likely purchased by a JDB. Paperwork could have been lost in the last 6 years – which by the way is the SOL on collection in both New Mexico and Alaska. Oh and here is the SOL on debts in both states: New Mexico: Collection: Written Contract: 6 Years Judgment: 14 Years NON-Renewalable Alaska: Collection: Written Contract: 6 Years Foreign Judgment: 10 Years NON-Renewalable Good Luck
Ok he states in his letter it will be his duty to try and enforce the judgement by domesticating it here in Alaska. He also sent copies of the court paperwork from New Mexico along with a certificate of Authentication signed by the judge. this is dated August 18 2011. I am checking into bankruptcy.
