Default Judgment...Do We Have Any Options?
Date: Wed, 07/11/2012 - 16:05
Sigh...where to start.
In 1999 when I was going to college, my girlfriend (now wife) got a $3,500 credit card and towards the end of my college career, ended up defaulting because we couldn't make the payments. The card went to collections and we moved out of state.
A couple years later, we got a notice in the mail that stated there was a default judgment entered against us for just over double the original amount of credit, about $7,700. This also included accrued interest at the original card level, 15.99%.
We live in Alaska now and the company has been garnishing 80% of my wife's dividend for the past ten years. Naievely, we thought this would be an ideal way of paying this debt. Well, we forgot about the interest. We never get statements from this company. Earlier this year, I sat down to do the math on how much has been paid for this debt and so far, to date, the company has been paid just over $10,000.
It was approaching the ten year mark and we received a motion in the mail to renew judgment. They are asking for over $8,000, MORE than the original judgment, after being paid more than $10,000!
So I guess my questions are, do we have any options at all in fighting this or getting it dropped completely? The company has been paid more than what the judgment was awarded. Yes, I know that the interest still accrues. Does that mean we are just SOL?
In 1999 when I was going to college, my girlfriend (now wife) got a $3,500 credit card and towards the end of my college career, ended up defaulting because we couldn't make the payments. The card went to collections and we moved out of state.
A couple years later, we got a notice in the mail that stated there was a default judgment entered against us for just over double the original amount of credit, about $7,700. This also included accrued interest at the original card level, 15.99%.
We live in Alaska now and the company has been garnishing 80% of my wife's dividend for the past ten years. Naievely, we thought this would be an ideal way of paying this debt. Well, we forgot about the interest. We never get statements from this company. Earlier this year, I sat down to do the math on how much has been paid for this debt and so far, to date, the company has been paid just over $10,000.
It was approaching the ten year mark and we received a motion in the mail to renew judgment. They are asking for over $8,000, MORE than the original judgment, after being paid more than $10,000!
So I guess my questions are, do we have any options at all in fighting this or getting it dropped completely? The company has been paid more than what the judgment was awarded. Yes, I know that the interest still accrues. Does that mean we are just SOL?
Interest on an AK judgment is 10% which means your dividend garn
Interest on an AK judgment is 10% which means your dividend garnishment has probably only been paying the accruing interest assessed each year....probably nothing goes to principal. You could have had this paid off years ago if you had just made voluntary payments.
