Author Topic: Default Judgement just entered; how to minimize CR damage  (Read 765 times)

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onezero

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Default Judgement just entered; how to minimize CR damage
« on: August 13, 2014 04:05:00 AM »
MSJ was successful in Arizona and they mailed me a copy of a default judgement in the amount of $2,530 entered on 7/25/14.

I received summons' leading up to this, but I was just too overwhelmed to respond or do anything. Having now researched this site a bit, I am not confident that I would be successful in seeking a motion to vacate the judgement.

I see my options as follows:

1.  Take out a 401k loan and pay the judgement resolving the matter and granting some peace of mind.
2.  Ignore the matter and live in fear that on my next payday, my bank account will be seized.
3.  Try to negotiate a settlement with them.

If I contact them willing to pay, can I also attempt to get them to remove the judgement from my credit report? Is this even possible? I understand that they have little incentive to settle at all, but I am terrified of the lasting affect this judgement can have. Especially a judgement so fresh. My partner and I are wanting to buy a house in 2 years time.

My CR shows only one application for credit. This took place on 2/2013 for a credit card and was denied.  I don't think there are any crumbs of funds there. Now that the judgement occurred, I assume they are getting ready to start wage garnishment or maybe seize my bank account after my next pay day.

I also have 2 other CAs "dormant" on my CR, both not been touched since May 2008. I expect any kind of settlement or payment with the above account could bring these accounts back to life. Having read this site, I'm thinking I should preemptively send dispute letters to them?

Bruno the JDB Killer

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Re: Default Judgement just entered; how to minimize CR damage
« Reply #1 on: August 13, 2014 01:54:22 PM »
If there has been no activity on those two accounts since 5-2008, assuming that means the last time you paid was then, you cannot be sued for them. They are beyond the statute of limitations. (6 years in AZ) Just let them sit until they fall off your report.

Did you give them banking information? They have to get a writ of execution from the court to levy the account. It's harder to negotiate with somebody who has a judgment, but not impossible.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

onezero

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Re: Default Judgement just entered; how to minimize CR damage
« Reply #2 on: August 13, 2014 08:34:32 PM »
Thank you Bruno!

I never gave them banking info. I haven't even communicated with them at all yet. I'd like to prepare some kind of offer to them before contacting.

5/2008 is indeed the last date of payment on both those other accounts.

I got concerned bc my CR shows that the OC (M&I BM Harris Bank) for one of those accounts, reviewed my CR on 6/30/2014. I wasn't sure why they would do that since the account is past AZ SOL. If they do contact me in attempt to collect, I now have them on violation of SOL and I can file suit for FCRA SOL violation, correct?

Bruno the JDB Killer

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Re: Default Judgement just entered; how to minimize CR damage
« Reply #3 on: August 13, 2014 09:53:56 PM »
No, the SOL for credit reporting is 7 years from the date of default. It has nothing to do  with the SOL for being sued. They would have to sue or threaten to sue for you to have an FDCPA violation, not FCRA.

If they pulled after the SOL expired to sue, they would have to explain why they pulled.

Eventually, they will send you debtor's interrogatories or take you to court for a debtor's exam. See FlyingIFR's posts on being judgment proof.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

 

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