Q: SOL in michigan for a car repo in 2002? Sued and judgement against me was declared in 2004
I co-signed for a car for a boyfriend in 2000. Repoed in 2002 and know there hasn't been a single pmt made since then. I did receive a letter every few years about collections but ignored it as I couldn't pay it. Last week I get a paper from law firm saying the 4k is now 9k and notice of garnishment for income taxes. I have great credit and want it to stay this way. Can they do this so many years later? Should I call creditor to negotiate? If I do nothing what will happen?Will it continue to accrue interest and will they garnish bank acct/checks etc.? What is the best way to resolve this? I am in Michigan.
A: A 2004 Judgment may seem old, but creditors are permitted to "renew" a judgment. This is probably what happened in your case but you have to do some research and check the court record. Can they do this so many years later? Yes - probably. You need to get a copy of the "register of actions" from the court to be sure the court granted a renewal of this judgment. If you do nothing they will continue to collect. You can expect garnishment of taxes, income, and/or bank accounts. The best way to resolve this (after doing the research noted above to be sure collection is within the Statute of Limitations), is to negotiate a settlement in return for ceasing the garnishment. Be sure to get any agreement in writing.
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