What to do about a bank garnishment once the statute of limitations has expired?

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What to do about a bank garnishment once the statute of limitations has expired?

I had a credit card debt that started 8 years ago. I’ve been out of work for the past 10 years (medical). The debt collector, which is a law firm, filed a judgment in my states Superior Court. I had received a letter with a docket number saying they were garnishing my wages from a job I wasn’t even working at the time ($150 a week). I see that the debt is no longer on my credit report because the statute of limitations is over. I hadn’t heard from the collection agency in about 5 years but recently my 87 year. old aunt put my name on her bank account (her or me).Now out of no where I got a letter from them saying, “A judgment was previously entered against you in the above matter”. I wanted to know if they could freeze my aunt’s bank account because my name is on it? What about the SOL?keep that from happening.Concerned for my aunt,Melody

Asked on April 14, 2012 under Bankruptcy Law, New Jersey

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

For there to be a wage garnishment there has to be an underlying judgment supporting it. If there is a judgment, then you somehow were served with the summons and complaint personally, by publication or subserved even though the time period for bringing suit could have been barred by your state's statute of limitations.

I suggest that you immedediately consult with an attorney that practices in the area of consumer debt law to assist you and possibly look into setting aside the presumed judgment against you if proper service was not made.

If you and your aunt share a joint bank account, the judgment creditor could very well levy upon it taking the entire amount. I suggest that the account be taken out of your name immediately.

Most statute of limitations for consumer debt is four (4) years from when the last payment was made on the credit card debt that you are writing about for the creditor to file suit.


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