SevenWishes
Junior Member
What is the name of your state? New York
I have a dilemma regarding my wife's student loans. In the late 1980's she fell into default on two loans. Both resulted in judgements against her. In the first case, her salary was garnished for a few years until the debt was satisfied.
The 2nd judgement occurred in May of 1994. The only action through the years that was taken was that her tax refunds would be seized. She didn't mind that because her attempts in the early going to negotiate a payment plan she could afford but that would still be enough to reduce prinicipal were rebuffed by them.
In April, 1999 she filed for Chapter 7 Bankruptcy. Per current laws on student loans, this debt was not eliminated.
Until recently, no new action occurred except for the tax refunds being seized each year to pay down the debt. After marrying her in 1998, my refunds would be seized too because we'd file jointly. At the time I didn't mind because it was helping to lower the debt, but last year I filled out an "Injured Spouse" form to claim my share of the joint refund, which I did get. I am wondering if that is the cause of the sudden collection activity.
The same law firm that would make collection calls right before the Chapter 7 action in 1999 has started to call. They also sent a note saying they will do an asset search. Today, she got a letter that basically specifies the 1994 judgement and all the details (money owed, etc.). She thinks it is a court summons but I have not been able to look at it yet and I think it is just a "statement of the facts on the ground" designed to look like a summons to scare people.
While she has not checked her credit report in about 6 months, the judgement did come off the report after 7 years as expected.
If you can answer the following questions, they would be really helpful in determining our future course of action:
1) What is the statue of limitations on trying to collect a judgement? I thought it was 10 years.
2) Can a judgement be "renewed", i.e. can a 2nd judgement be brought to court for the same matter as a previous judgment? If so, can that 2nd judgement be on the credit report?
3) If she chooses to negotiate a repayment plan rather than keep letting them take her tax refunds, will that produce a new negative entry in her credit report that will last 6 years.
Please let me know. Thanks and much appreciated.
I have a dilemma regarding my wife's student loans. In the late 1980's she fell into default on two loans. Both resulted in judgements against her. In the first case, her salary was garnished for a few years until the debt was satisfied.
The 2nd judgement occurred in May of 1994. The only action through the years that was taken was that her tax refunds would be seized. She didn't mind that because her attempts in the early going to negotiate a payment plan she could afford but that would still be enough to reduce prinicipal were rebuffed by them.
In April, 1999 she filed for Chapter 7 Bankruptcy. Per current laws on student loans, this debt was not eliminated.
Until recently, no new action occurred except for the tax refunds being seized each year to pay down the debt. After marrying her in 1998, my refunds would be seized too because we'd file jointly. At the time I didn't mind because it was helping to lower the debt, but last year I filled out an "Injured Spouse" form to claim my share of the joint refund, which I did get. I am wondering if that is the cause of the sudden collection activity.
The same law firm that would make collection calls right before the Chapter 7 action in 1999 has started to call. They also sent a note saying they will do an asset search. Today, she got a letter that basically specifies the 1994 judgement and all the details (money owed, etc.). She thinks it is a court summons but I have not been able to look at it yet and I think it is just a "statement of the facts on the ground" designed to look like a summons to scare people.
While she has not checked her credit report in about 6 months, the judgement did come off the report after 7 years as expected.
If you can answer the following questions, they would be really helpful in determining our future course of action:
1) What is the statue of limitations on trying to collect a judgement? I thought it was 10 years.
2) Can a judgement be "renewed", i.e. can a 2nd judgement be brought to court for the same matter as a previous judgment? If so, can that 2nd judgement be on the credit report?
3) If she chooses to negotiate a repayment plan rather than keep letting them take her tax refunds, will that produce a new negative entry in her credit report that will last 6 years.
Please let me know. Thanks and much appreciated.