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old judgement

Date: Sat, 12/16/2006 - 07:00

Submitted by anonymous
on Sat, 12/16/2006 - 07:00

Posts: 202330 Credits: [Donate]

Total Replies: 3


I have recently had a old judgement of 14 years brought against me by a scavenger debt collector who has added interest for all these years. She had bought it for $2.00. She wen't to court and put a execution on my name, how can this possibly be legal?


Hello Toby - welcome to the forums! Since you have registered with the site, a debt counselor will be contacting you within a few days to discuss your financial situation and your options for credit counseling, consolidation or settlement with your creditors.

As far as the judgement goes, I do know that a judgement stays on your record until paid off, and even when paid off, the judgement shows on your credit, but shows as a "satisfied judgement". I don't know about the legality of the debt collector purchasing your account from the original creditor or another collecton agency, but it does sound feasible to me. I will forward this thread to our member "debtcruncher" - he's a fantastic resource for credit/debt related items. Hopefully he'll have better answers for you.

Please let us know if we can be of further assistance.


lrhall41

Submitted by SUEBEEHONEY70 on Sat, 12/16/2006 - 12:04

( Posts: 4583 | Credits: )


Toby,

Generally for a debt to be sold, it has to have a clause in the original agreement that says it can be assigned or transferred. If there is one, then whoever owns that debt can assign it to anyone they want for any amount of valuable consideration. In this case, is appears the assignor (original creditor) assigned it to the scavenger at a discount for consideration of $2.00 That is probably legal. (Supreme Court Justice Benjamin Cardoza once said "even a peppercorn is sufficient consideration." -- meaning, the creditor could sell off your debt in exchange for a peppercorn, if they wanted to.) But regardless of how much it is sold for, you would still owe the face value of that judgment.

Each state has a statutory interest rate which can be charged on judgments (in Illinois it is 9%). Interest can be charged at the statutory rate from the time a judgment is entered, until it is paid. 14 years interest at the statutory rate may be legal.

Where you might have an issue, is in the timing of the judgment's enforcement. Just like any debt, a judgment does have a statute of limitations in which it is enforceable. After the SOL expires, the judgment is no longer enforceable.

Depending on your state, you need to see how long a judgment is good for. In Illinois, a judgment is good for 20 years. Let me know what state you're in and I may be able to find out how long a judgment lasts.


lrhall41

Submitted by DebtCruncher on Sat, 12/16/2006 - 22:08

( Posts: 2293 | Credits: )