Author Topic: Default judgment in Colorado levied my bank account in Arizona  (Read 434 times)

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nocodon

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My USBank account in Arizona was levied on an alleged default judgment in Colorado. The OC was Cap1 being collected by Machol & Johannes out of Denver.

Back in 2009, apparently I was handed a default judgment. I had three open back surgeries I do not remember 2009 and part of 2010. Anyway, this last Wednesday I opened my online banking and noticed my bank account light by $1507.00 plus a $100 fee for the bank. After getting the news I researched the statutes and ARS12-544 states that a judgment that is over four years old is unenforceable in AZ.

I know my bank has branches that cross state lines, but my bank accounts were all opened here in AZ all of the paperwork has my old Colorado address from two years ago. I need to answer somehow. The paperwork they sent is of Colorado Jurisdiction. I would love to sue USBank for being stupid and unable to read the address line and the routing number to figure out that if this judgment is real then it needs to be domesticated in AZ.

Need help ASAP/

Thank you
Don

muddywater

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Stand by for heavy rolls as the ship comes about.

Bruno the JDB Killer

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Re: Default judgment in Colorado levied my bank account in Arizona
« Reply #2 on: July 23, 2017 12:35:33 PM »
Do you know for sure that it hasn't been domesticated? If it was, it's good for 5 years and can be renewed again for 5 more. I'd look that up first. That article Muddy linked to could be trouble. It's a bad idea to bank with somebody who has a judgments against you. Undoing a  judgment from 2009 may be hard to do, but you might want to see a lawyer.
« Last Edit: July 23, 2017 12:41:11 PM by Bruno the JDB Killer »
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

Clydesmom66

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Re: Default judgment in Colorado levied my bank account in Arizona
« Reply #3 on: July 23, 2017 04:27:13 PM »
"I would love to sue USBank for being stupid and unable to read the address line and the routing number to figure out that if this judgment is real then it needs to be domesticated in AZ."

I am sure you would love to sue them but it isn't their responsibility to ensure the judgment is domesticated in AZ.  They received a lawful court order for garnishment and complied.  Their hands are clean.

"I researched the statutes and ARS12-544 states that a judgment that is over four years old is unenforceable in AZ."

That is for a judgment that is obtained without the AZ courts, it does not apply to your situation.  Unfortunately for you CO judgments are good for 20 years.  As long as that judgment was viable in CO they could domesticate it in AZ at any time during that 20 years.

"I know my bank has branches that cross state lines, but my bank accounts were all opened here in AZ all of the paperwork has my old Colorado address from two years ago."

The address is  your major problem. What branch the account is in may not be relevant in the digital era.  The account bears a CO address which likely left it subject to seizure/levy without needing domestication.  ALL the law firm had to do was present it to a branch in CO to levy and it hit ANY account you had with that bank.

"I need to answer somehow."

You need to find out if you were ever properly served.  You need to find out if the judgment was domesticated.  You are going to need a lawyer to unravel this it is NOT a DIY project.  Both states are very creditor friendly and 18 years after a judgment and bank levy it may be impossible to vacate the judgment now.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Bruno the JDB Killer

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I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

CleaningUp

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Re: Default judgment in Colorado levied my bank account in Arizona
« Reply #5 on: July 23, 2017 10:39:09 PM »
Here's what Arizona has to say about foreign judgments:

Quote
ARIZONA ENFORCEMENT OF FOREIGN JUDGMENTS ACT

12-1702. Filing and status of foreign judgments.

A copy of any foreign judgment authenticated in accordance with the act of Congress or the statutes of this state may be filed in the office of the clerk of any superior court of this state. The clerk shall treat the foreign judgment in the same manner as a judgment of the superior court of this state. A judgment so filed has the same effect and is subject to the same procedures, defenses and proceedings for reopening, vacating, or staying as a judgment of a superior court of this state and may be enforced or satisfied in like manner.


Emphasis added.

BellEbutton

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Re: Default judgment in Colorado levied my bank account in Arizona
« Reply #6 on: July 23, 2017 11:49:18 PM »
In determining whether to apply the statute of limitations of a sister state or its own statute of limitations, Arizona courts have held that its own statute of limitations applies even if it bars the enforcement of a foreign judgment filed under the Uniform Enforcement of Judgments Act, A.R.S. 12-1701 through 1708. Eschenhagen v. Zika, 144 Ariz. 213, 696 P.2d 1362 (App. 1985).

Therefore, a foreign judgment is not actionable in Arizona if a judgment creditor attempts to have the foreign judgment recognized and enforced after the four-year limitations period has run.  Citibank, N.A. v. Phifer, 181 Ariz. 5, 6-7, 887 P.2d 5, 7 (Ct. App. 1994). In summary, A.R.S. 12-544(3) dictates the time within which a foreign judgment can be enforced in Arizona. When a foreign judgment is timely filed, the Uniform Act gives the clerk the authority to treat that judgment in the same manner as a domestic judgment. Filing a judgment after expiration of the statute of limitations period for the enforcement of foreign judgments does not entitle the holder to the extended time limits enjoyed for the enforcement of domestic judgments. Citibank's filing of the notice was untimely, and the judgment of the trial court is reversed. Id.

In Arizona, "the statute of limitations begins to run when the cause of action accrues, which is the date on which the foreign judgment is entitled to full faith and credit in Arizona." Grynberg v. Shaffer, 216 Ariz. 256, 257, 165 P.3d 234, 235 (Ct. App. 2007). That date is when the judgment is issued by the trial court and enforceable in the issuing jurisdiction. Id. at 260, 165 P.3d at 238.


The OP needs to speak to an attorney.

nocodon

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Re: Default judgment in Colorado levied my bank account in Arizona
« Reply #7 on: July 24, 2017 10:28:12 PM »
The judgment has not been domesticated. It was signed off by a court clerk in Colorado. I talked to a couple of attorney's in Arizona and they said it needed to be handled by a Colorado attorney. I have reached out to a couple attorneys in Colorado and have not heard anything back.

Since I am out of Colorado jurisdiction when I answer the reason for not giving them my money can I ask for more time since I got this on the 22nd and they froze my money on the 19th.

Thank you for all of the replies.
Don

CleaningUp

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Re: Default judgment in Colorado levied my bank account in Arizona
« Reply #8 on: July 25, 2017 01:38:31 AM »
You can ask, but there is no guarantee that you are going to get it.

They're going to produce the judgment as their evidence; what are you going to show that constitutes at least prima facieevidence that the judgment and/or the attachment isn't warranted?  That's the hurdle you have to get over.

And a point about which you need to be aware...The money is virtually in their hands...it has been sequestered and will be turned over when the time allowed for challenge expires.  You are NOT giving them the money...THEY have TAKEN IT.


Clydesmom66

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Re: Default judgment in Colorado levied my bank account in Arizona
« Reply #9 on: July 25, 2017 01:52:58 AM »
The judgment has not been domesticated. It was signed off by a court clerk in Colorado.

Since I am out of Colorado jurisdiction when I answer the reason for not giving them my money can I ask for more time since I got this on the 22nd and they froze my money on the 19th.

Your major problem is that you have a Colorado address on the bank account which DOES initially establish a presence in CO which likely allowed them to circumvent domesticating the judgment in AZ.  While you physically are out of CO legally you may not be for the purpose of seizing that account.

As @CleaningUp said you are not "giving" them anything.  The account is frozen pending levy to the court.  Unless you can show that the money is exempt from levy i.e. SSI, SSDI, pension then you will not get the levy stopped. 

They are not required to notify you in advance of levying the account.  If they were people would clean out the account before it hit.

You need a lawyer ASAP.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.