I bought a house 10 years ago from a private party. A while later, my house payment was garnished by a collection agency for a debt owed by the people I bought the house from. I have paid them $1,300.00 more than the contractual price of the house. They have put a lien on the house, garnished my bank accounts and say I still owe over $4,000. This was never my debt. What can I do?
Thank you for your question about the judgment entered against you for a debt that did not belong to you.
Before the judgment was obtained, which has lead to your wages being garnished, you were sent a summons to appear in court. If you ever receive a summons you should do as it instructs! This is not a social invitation that you can ignore. In the hearing, the judge decides if the creditor should be allowed to collect the debt. If the debtor fails to appear, the judge has no choice but to decide on behalf of the creditor.
When you receive a summons, the first thing you should do is contact the law firm representing the creditor. Open a negotiation to see if they are willing to settle the debt. If you do not owe the debt, present the facts to the law firm that shows them this. If you are not able to come to an agreement with the law firm, you should respond as indicated in the summons. If there is a hearing, attend it and present your side of the story to the judge. Use facts, tell the truth, dress appropriately, and show the court respect. The court may or may not decide in your favor, but at least you exercised your right to be heard.
I encourage you to read about how to negotiate debt with a collection agent
With a judgment already entered against you, proving that you do not owe the debt may or may not be possible. I recommend that you to speak with a licensed attorney in your state to see what options are available. Most attorneys offer a free initial consultation. Here are some tips on how to find an attorney.
I hope this information helps you Find. Learn & Save.