after 10 years a collection agency ic garnishing my wage for the debt of $12000 what is the best option to do?

Question

i had a debt of $6000.00 from a creditor 10 years ago. recently a collection agency obtained a judgement to garnish my wage and they are doing so every week for 10% of my gross. with the interest the debt they put on me now is $12000.00 would any one please tell me what is the best option to do now. by the way i am planning to file for bankruptcy since i dont know if there is any other option.

Answer 1

Sorry, friend, but no sympathies here for you. Anyone who lets a debt go that long, and has a collection agency (which I hate, by the way) coming after them and FINALLY catching them, deserves what they get. Pay it, or file bankruptcy and ruin your credibility...your choice.

Answer 2

There are many omissions in your question that would otherwise help in answering your question.

You don't say how the collection agency got a judgment against you, nor when they did. You do say that the debt is ten years old, but did the agency get the judgment just now?

If they did get the judgment that would mean that they had to sue you and that you were offered a chance to defend yourself in court. A judgment is given when you have lost your case in court.

Did you go to court? Were you even aware that there was a court case against you?

If this court case was recent, say within the last year or so, and if the debt is ten years old (meaning that the debt became past due ten years ago), chances are the debt is past the statute of limitations for collection. A statute of limitations is the time in which an entity (another individual, company, or branches of the government) can legally sue. In criminal matters, the statute of limitations can be very short (a few years or so) for small petty crimes to none at all (murder has no statute of limitations).

There are also statute of limitations for civil matters. In the matter of debt, the SOLs vary by state. They are usually no more than six years, for something like a credit card, aka an "open account", , in which case, you could have presented a defense in court by saying the statute of limitations has run out.

This is why it is important to know if you were aware of a court case against you. There had to be one since judgments come from one.

If the collection agency never informed you of a case against you, and if you didn't show up because of it, the collection agency won a default judgment. Simply put, you weren't there, so they win.

If they did this (not informing you of the case), than you can find out about the case and appeal the judgment. This doesn't mean that you would win, since you'd have to prove that you didn't receive a summons or complaint about the court case. This may not be as difficult as it seems. But, it won't be all that easy. Still, it offers you a chance to get the judgment overturned.

Sometimes, the judgment may be thrown out and the collection agency forbidden from being it again. Other times it may be thrown out but the agency may bring the case up again. If the case can't be brought up again, you win and you are free. If the case can be brought again, you will still have the defense of the statute of limitations expiring.

You must know that even if the statute of limitations has expired, it does not mean that the collection agency can't sue. It only means that once they sue, you can THEN get it thrown out of court because it expired.

The reason why a collection agency might sue on an expired SOL account is that they may take the chance that you won't bring up the defense and then, they may win. So, it is very important that you assert the defense of the account expiring under the SOL for your state.

If you had a case and you knew of it and you didn't bring up the SOL, and assuming the judge acted in the proper fashion, chances are you have no grounds for appeal and unfortunately, must pay the money you owe, despite the account having expired under the SOL.

If you weren't informed of the case, you should find out from the civil court in your area when the case occurred and get a copy of the document the collection agency filed with the court stating how and when you were served with the summons and complaint relating to the case.

I've provided a link to a list of SOL's.

Answer 3

If your wages are being garnished it’s because they sued you and obtained a judgment. The credit bureaus will pick this up from the public record that is now created at a county level. A judgment can be renewed so this could go on for a quite a period of time. In circumstances like yours, the original creditor may elect to take a lump sum settlement at perhaps 50% in lieu of taking a small amount from your check forever. Of course if you can’t raise that sum there is little choice you have except to allow the garnishment, quite your job or file bankruptcy.

Since I don’t know your total financial condition I couldn’t hazard a guess as to whether bankruptcy is a good choice for you. Your attorney can better advise you. I do know this. Problems don’t go away because they are ignored. Do nothing and you will be asking the same question in 1 year.

Your question is great because there are so many people here that advise that there is little likelihood that creditors will sue.

Answer 4

If the debt is on your credit report and it's not from the original creditor - DISPUTE IT! Nine times out of ten, they do NOT have the original paperwork. If they do not have the original paperwork then, by law, it has to be removed and this debt ceases to exist. My other suggestion is to contact a bankruptcy attorney to see if filing is the best option for you. The previous poster is right: bankruptcy will ruin you for 7 - 10 years. It took me four years to recover from chapter 13.

Answer 5

Find out how much they would reduce the debt if you could borrow the money from some other place OR increase the amount of payments. For a debt to double in 10 years is really not that high of an interest rate, but they probably bought the debt for much less.

Answer 6

was it a unsecured loan like a credit card? have you made any agreements to pay even a little in like the last 4 years? if they just came out out the blue and started garnishing the wages, and its been longer then 4 years since you offered to pay, the debt is outside the statue of limitations. do not at any time offer to pay. the only thing they can really come after you for after that long is taxes and student loans. if the above applies to your case, dispute it. make them prove the debt is yours. go to court and tell them that its outside the statue of limitations to collect. if you have at any time in the last 4 years promised to pay, then there is not much you can do, besides calling them and telling them you are filling for bankruptcy if they do not reduce the amount of the garnishment.

Answer 7

I wouldnt think this is legal because the debt is so old. contact a lawyer and ask them. In the mean time I would try to get in some over time. Sorry to hear about it. As far as bankruptcy i would consider it if a lawyer tells you theres nothing you can do. I sure wouldn't give the bastards double the money on a debt they already wrote off on thier taxes. Good luck..

Answer 8

Echo's answer covers maximum of what i might want to have stated...enable me upload a pair issues. even if a collector sues you a great deal relies upon on the quantity of the debt and the position you stay on the challenge of the sequence agency. many cases they received't mess with charges less than $500...for $2000 you'd be a purpose. do not ignore that merely because the handle of the sequence agency says Nevada would not recommend they do no longer have a community workplace on your state. in the adventure that they have got a community workplace, they are going to sue for even small quantities because they are already going to court docket to hearken to different circumstances, and the court docket will crew all their circumstances on one docket. i have considered an same sequence lawyer do a dozen circumstances in a row. so that you want to seem at those factors. Your charges are 5-6 years previous presently. After7 years (from the date of the delinquency) they are going to drop off your credit report. As time is going by technique of, the outcome of inauspicious products on your report lesson, yet in case you pay off the debt, it is going to turn your itemizing to a present day status, and which will damage your credit till it finally drops off. So my suggestion is to adhere to Echo's suggestion and locate out what the SOL is.....if that's over the decrease ignore about them. If that's authentic close do not pay it and word in the adventure that they goof up and fail to report. do no longer attempt hiding in the back of a placed up workplace container. procedure servers have various strategies to locate your authentic handle, and in a lot of states they could honestly serve you by technique of sending on your PO container. I do procedure serving on the area, and in maximum states is very user-friendly to locate you this way.

Answer 9

You can't afford 10% of your paycheck to pay back the debt? Bankruptcy will ruin you and it's no guarantee that you will be relieved from the judgment.