the statute of limitations (7 years in ny) so I asked them please not to contact me any more. The debt, along with interest would of been around 4,000. Today I went to check the activity on my checking account and I see a negitive balance for 10,000! I contacted my bank and they said it was a hold from a law office, apparently the same one that contacted me! Im freaking out, I want to resolve this and satisfy the debt, I am contacting them monday since they aren't in today, do you think they will make an arrangement with me and lift that hold for 10,000??? Please help, I need all the advice I can get!!
2007-04-28 02:56:12 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
The Statute of Limitations in New York is 6 years, not 7.
Because the SOL expires does not mean they can't sue you. But when you show up in court, if you inform the judge the SOL has expired (affirmative defense) the judge will immediately dismiss the judgement.
So what has happened is the creditor file a lawsuit and did not make a dilligent effort to locate you and inform you of the court date. You didn't show, so they granted a default judgement.
What you need to do is go back to court and file for a dismissal based on the SOL being expired. Since this is for several thousand dollars you may want to hire an attorney rather then risk messing up the paperwork. Also, if you can find a decent attorney, you can probably file for damages. If the "cease and desist" letter you sent contains language that the debt was over the SOL, then their collection attempts were illegal. You could get damages, plus civil damages for FDCA violations.
2007-04-28 04:34:25 · answer #1 · answered by Anonymous · 2⤊ 1⤋
The SOL statutes Studly gave are correct.
A few of questions --
Is this concerning the the lawyer that had contacted you only days ago and was threatening legal action?
When you sent the letter to the lawyer was it actually a "SOL" letter or was it only a cease and desist letter?
Did you send the SOL letter certified mail return receipt. If so, did they sign for it "before" they froze your bank account?
If it was a SOL letter (and not just a C&D), if it was for the debt they were using threats of legal action on (no current judgment for that debt) and they had received your letter before freezing your bank account -- then freezing your bank account would probably be considered an illegal action and they shouldn't be allowed to get away with it.
edited to add --
You need to contact your county court clerk to see if a suit was filed against you, and if so, when it was filed (if it was before or after you told them the account was past the legal collecting SOL)
From some reading I've done, they cannot legally freeze a bank account if they have not first filed suit or received a judgment against you.
another edit --
Be extremely careful if you contact that lawyer. DO NOT sign anything !!!
If you do, you could open yourself up to be legally sued and lose your SOL defense.
§ 17-101. Acknowledgment or new promise must be in writing.
An acknowledgment or promise contained in a writing signed by the party to be charged thereby is the only competent evidence of a new or continuing contract whereby to take an action out of the operation of the provisions of limitations of time for commencing actions under the civil practice law and rules other than an action for the recovery of real property. This section does not alter the effect of a payment of principal or interest.
In fact I would suggest contacting your own lawyer instead of contacting that lawyer directly. It may be quite possible that the lawyer owes "you" money.
2007-04-28 11:12:19 · answer #2 · answered by echo 7 · 1⤊ 1⤋
If you need legal advice, then you really need to contact an attorney in your state. If you can't afford one, there are a few free providers that may be able to assist you.
2007-04-28 02:59:13 · answer #3 · answered by Shira I'nusyl 3 · 1⤊ 0⤋
your bank did this without contacting you?
did the bank receive a court order? if yes, have them fax you a copy.
if no they have no grounds to issue a hold on your account.
in any case, call a qualified lawyer.
this sounds like one of those cases that might be taken on contingency.
2007-04-28 03:08:12 · answer #4 · answered by tigerkitty2 5 · 1⤊ 0⤋