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Account purchased and then judgement

Submitted by Kathryn on Wed, 04/12/2006 - 07:09
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I discovered that the account that went to judgement was purchased by a collection attorney. He then proceeded to take it to court and was awarded a judgement. My question since this item was purchased by the collection attorney can the original creditor (Service Merchandise) also have a negative listing on my credit report? Would this be considered a duplicate listing?
By the way, the first contact I had with the collection attorney was when the court papers were served. Was he not required to contact me?


He did contact you. He sent you court papers. If you got a judgment against you because you didn't show up and defend yourself, that's a valid judgment. Best thing you can do, unless you want to hire a lawyer and try to get the judgment vacated, is to make arrangements to pay that judgment off before the lawyer does a garnishment on your bank account or wages, or has the sheriff go to your house and inventory and seize your personal possessions for sale in front of the courthouse. There are exemptions, but they generally apply to things that have little or no intrinsic value. They can tow your car away, for example, but they can't generally take tools of your trade, wedding rings or family bibles.

If you don't intend to pay up, check out what kind of homestead exemption you're entitled to in your state.


Submitted by Virginia-Legal-Defense on Wed, 04/12/2006 - 08:19

Virginia-Legal-Defense

( Posts: 260 | Credits: )


I have already paid all the cost associated with this debt.
The reason I did not show up for court was because I had sent full payment to the original creditor the week before I received the court papers. When I received the notification of the court date, I contacted the original creditor to tell them I had already sent the full payment. I did not contact the collection attorney because the original creditor was listed on the document I was served. Additionally, when I contacted the original creditor they did not tell me that the debt had been sold and I needed to contact the collection attorney. I suppose the payment to the origianl creditor forwarded to the collection attorney since after the court date all I received was a bill for court cost (which I have already paid).
My question is - Can the origianl creditor, the collection attorney, and the judgment all be listed on my credit report for the same debt?


Submitted by Kathryn on Wed, 04/12/2006 - 08:50

Kathryn

( Posts: 96 | Credits: )


No, they can't, not without making it clear that it's all the same debt.

You've got grounds to get the judgment vacated for fraud on the court. It was a mistake not to show up, though. You really do need to get that cleared up and right quick (there's a time limit), or you'll end up paying twice.

As to the matter of having paid the original creditor rather than either the debt collector or the person to whom they sold the debt, that's between them. If you didn't get notice of the sale of the debt from the original creditor telling you to pay someone else, your debt is still with that original creditor. If they sold it without having told you, that's between them and whoever bought the debt. If you had paid someone else thinking that the debt had been sold but it really hadn't been, it would be your fault you'd paid the wrong person, and you'd still have to pay the original creditor. That's why it's not your job to keep straight who owns the debt, unless you got written notice, because you're not required to take the risk of paying the wrong person.

You need to file something in writing with the court, copy to opposing counsel, that says you paid the original creditor without notice of any sale, etc., that you paid in full prior to entry of the judgment, and that you want the judgment vacated and the case dismissed as paid.


Submitted by Virginia-Legal-Defense on Wed, 04/12/2006 - 12:19

Virginia-Legal-Defense

( Posts: 260 | Credits: )