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Information on How Long a Judgment Will Last - The Bills.com Blog
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Information on How Long a Judgment Will Last
Wednesday, Jan 21, 2009
Question: My spouse has a judgement against him for an unpaid bill. We lost a business in NC. Is there a time limit as to how long this judgment is open? The amount is for equipment with a substantial amount of money owed.
Answer: North Carolina law allows a judgment creditor to try to collect on its judgment for ten years; in addition, creditors holding judgments can petition the court which entered the judgment to renew the judgment before the initial ten years expires. As long as the judgment creditor keeps up with the renewal process, the judgment can be renewed indefinitely until the judgment is paid. However, many creditors do not effectively track the expiration of their judgments, so if the creditor does not file for renewal, it is possible that your husband’s judgment will expire after the initial ten years. To read about the various statutes of limitations for the collection of judgments, and the renewal procedure in various states, you can review the information available here .You state that you lost a business in North Carolina, but your question is unclear as to whether or not you currently live in NC or if you have moved to a different state. The state of your residence is important, as it impacts what action the creditor can take against your husband to enforce this debt. For example, North
Carolina generally does not allow wage garnishment for the enforcement of civil judgments, which could make enforcing the judgment against your husband much more difficult. However, if you have moved to a different state, the creditor could file a motion to domesticate its NC judgment in your new state of residence, and then could enforce its judgment under the new state’s laws, which, in most states, allow for wage garnishment, levying of bank accounts, etc. I encourage you to consult with an attorney in your area to discuss the judgment against your husband and what action this creditor can take to enforce its debt.
If the judgment is as large as you seem to indicate in your question, your husband may need to consider filing for bankruptcy protection. In many cases, people whose businesses have failed are forced to file bankruptcy due to the overwhelming debt that can result from an unsuccessful business venture. Filing
If the judgment is as large as you seem to indicate in your question, your husband may need to consider filing for bankruptcy protection. In many cases, people whose businesses have failed are forced to file bankruptcy due to the overwhelming debt that can result from an unsuccessful business venture. Filing
for bankruptcy protection could allow your husband to either completely discharge this debt (Chapter 7 bankruptcy), or to work out a plan to pay back at least a portion of the debt (Chapter 13). A bankruptcy may also provide you and your husband an opportunity to resolve any other outstanding debts you and your family may owe. Which type of bankruptcy would be best for your family depends on many factors, including the type of debt you owe, your income, and other creditors. If you and your husband are considering filing for bankruptcy protection, I strongly encourage you to consult with a local attorney to discuss what bankruptcy options may be available to you. I also invite you to visit the Bills.com bankruptcy resources page.
I wish you and your husband the best of luck in finding a workable solution to resolve this debt, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
I wish you and your husband the best of luck in finding a workable solution to resolve this debt, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Marty Charles on Wednesday 4th February 2009 12:12
How long before a finance company can take me to court? This is the first month that I will be late with my payment and I have sent them letters explaining that payment will be sent as soon as I am able to. I am thinking of filing for bankrupcy, but I don't know if I can include this personal loans,my truck which is under my name and my ex-friend's name, credit cards that he took out and authorized me to use them. I have a debt of about $30,000.00.
2. Posted by Bill on Wednesday 4th February 2009 14:01
That is really up to the lender, but they usually tend to wait till the account is charged off. They might even start sooner. You will need to consult with a bankruptcy attorney. Only a bankruptcy attorney will be able to see if you qualify for a chapter 7 or a chapter 13 and which of your accounts can be included.
3. Posted by Krisine on Thursday 26th February 2009 08:23
I had a judgment against me in 1997 that is unsatisfied. How do I find out if it's expired?
4. Posted by Bill on Friday 27th February 2009 07:26
Typically judgments last for 10 years. You can pull your credit report and see if it is there or you can request your judgment holder (creditor) to "validate" the debt judgment. I hope that it is expired, that would be great for you!
5. Posted by Keith on Wednesday 1st April 2009 15:42
Bill,I have two unpaid judgements from 03 & 05 from the city of Chi. I now live in NC (2yrs) Can they garnish my wages or sav. acct. here in NC? What can they possibly do? Thanks
6. Posted by Bill on Wednesday 1st April 2009 15:57
While it cannot be said with certainty, but they can domesticate the judgment in NC, and try to enforce the judgment as per NC law.
7. Posted by Amy on Wednesday 27th May 2009 07:46
What is the best route for trying to settle a civil judgement?
8. Posted by Bill on Wednesday 27th May 2009 12:12
Speak to the lender that filed the case and won the judgment against you, to see if they are willing to accept a settlement. It is unlikely that you will be successful as they already have a judgment and will insist that you pay back the complete amount as ordered by the court, but it does not hurt to try.
9. Posted by gary mazz on Sunday 5th July 2009 05:51
How long does a civil judgement last in connecticut?
10. Posted by C Grant on Monday 6th July 2009 09:26
I have a judgment from 1990 in NC that has been renewed. I voluntarily returned a car I could not pay for but wa charged a $1500 'fee' I could not repay. I now live in MA and the second renawal will expire soon. Can they renew it again?
11. Posted by Bill on Tuesday 7th July 2009 09:13
Gary, under Connecticut law, some judgments can be enforced for 10 years and others for 20. You need to take your information to a Connecticut attorney who will be able to answer your question based on your particular facts.
12. Posted by Bill on Tuesday 7th July 2009 09:27
C Grant, yes they can, but whether they do is a different question. Massachusetts law presumes that the judgment is satisfied if 20 years have passed, although it can be renewed. NC is 10 years, as you know. The NC judgment holder has the right to renew the judgment in a Massachusetts court, although I think their chances of going to the expense of paying a Massachusetts law firm to file the renewal with a Massachusetts court seem slim in light of the size of the judgment and the amount of time that's passed.
13. Posted by J Wise on Thursday 16th July 2009 15:13
I have several credit cards that we have not been able to pay for over 10 months. Some of them are threatening to file judgements against us. They have offered settlements which, if I had the money, would be great deals!! Unfortunately we are not able to come up with the money at this time. I have read some of the forums and I'm afraid they will come to our house and take inventory of our personal things and take what ever they don't feel we need to survive. I have read that NC does not allow garnishing wages. We have gone to see a bankruptcy attorney but unfortunately that won't work for us. What's going to happen to us?
14. Posted by Bill on Friday 17th July 2009 11:48
My answer is going to have a bit of an edge to it because I sense, and I apologize if I'm mistaken, that you are being a bit passive about dealing with the problem. You had a great opportunity to learn about your rights and options when you consulted with the bankruptcy attorney, and it would be helpful to know why bankruptcy is not an option for you. Let's answer your question. First, you need to educate yourself about your options. Second, you need to understand the consequences of each. Third, you need a plan. Finally, you need to implement the plan. For Part 1, learn about debt consolidation in general and debt consolidation loans. These might be options for you if bankruptcy is not in the cards. For Part 2, read Collections Agencies, Collections Laws and Your State's Statute of Limitations , which outlines the strengths and weaknesses of each approach, among other facts about debt collection. Keep in mind you can negotiate your debt yourself. For Part 3 and 4, you need to pick a course of action based on your circumstances, and work the plan. If you follow the links to the articles I mentioned and create a plan, you will be in control of what happens to you.
15. Posted by satra on Monday 21st September 2009 23:23
I owe a number of credit card debts. I am unable to pay for them due to my unemployment and no other income. I have about 10 cc and they all have balances totalling about 20k. At this point I can't seem to make minimal payments. Should I file for chapter 7 ? I really dont want to make a debt consolidation. If I file chapter 7, Will some of the creditor still will file Objectionable-Discharge in chapter 7 ? thanks in advance.
16. Posted by Bill on Tuesday 22nd September 2009 08:38
Without knowing more, it's impossible for me to say what your creditors may do if you file for Chapter 7. In fact you may not qualify for Chapter 7. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, a debtor is required to complete a "means test" to determine whether the debtor qualifies for relief under chapter 7. See this handy online means test to see if you qualify for Chapter 7.
17. Posted by Kris on Tuesday 20th October 2009 10:08
My ex husband's business failed (never filed bankruptcy) and has had several law suits against him. He has never attended any hearings, hired an attorney, etc. Unfortunately, my signature was on a guarantee for a supply company and thru the usual legal process, I ended up with a judgment against me. I live in NC. Can I appeal this judgment? Would it do any good? I didn't have an attorney. I had paperwork (property settlement agreement, swore statement from my ex stating the debt was solely his) but judge said that was bwtn the two of us. What happens next? THANKS!!!
18. Posted by Bill on Tuesday 20th October 2009 10:46
What happens next is that I think I will move to North Carolina and open a law office, because apparently there are not enough attorneys practicing law there. Your ex-spouse was foolish during the wind-down of his business when he did not consult with an attorney to help protect himself from the actions of his business' creditors. Your attending a hearing without representation is understandable because you thought the divorce and your ex-husband's sworn statement would insulate you -- but unfortunately you were mistaken. Stop trying to practice law yourself. Remember the adage, "He Who Represents Himself Has A Fool For A Client." Take all of your documents relating to your divorce and the judgment against you and see an attorney. You will probably need to join the parade and file a lawsuit against your ex-husband. You may need to file for bankruptcy, too. However, before you run down to the courthouse with a stack of Chapter 7 or 13 forms, consult with an attorney.