Legal Question in Credit and Debt Law in New York

Car Loan from 14 years ago

I took out a car loan in 1989 and didnt pay any money on it. A judgement was entered under by name in 1991 and now they want me to pay twice the amount of the loan due to accured interest at 9%. They have sent letters to my job for personal payroll information on me. I have called them and received a copy of the contract and they want me to pay $3500.00. Since this was 14 plus years ago am I still responsible and can they garnish my wages?

Thank you.


Asked on 6/09/04, 6:19 pm

2 Answers from Attorneys
Steven Czik CZIK LAW PLLC

Re: Car Loan from 14 years ago

Judgments unfortunately are good for 20 years, sorry

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Answered on 6/09/04, 6:28 pm
Guy Lewit Guy Mitchell Lewit, Esq.

Re: Car Loan from 14 years ago

Yes. You would be liable for the unpaid principal amount due on the loan, interest on that amount up to the date the judgment was entered (interest rate either 9% or as set forth in your contract) plus any collection costs and/or charges as allowed by the court. Once all those amounts are calculated and entered as a judgment, the entire judgment amount accrues interest at 9% per year which is the legal rate of interest. The entered judgment is effective for 20 years...and can be renewed before the end of the 20 years for additional time (if anyone is still around to bother). Judgments may be enforced by garnishment (up to 10% of your GROSS salary or other compensation per pay period) plus any funds in a bank account plus other seizable and sellable assets (cars, etc.)_ YOu should make a deal and pay off the judgment.

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Answered on 6/10/04, 2:05 pm


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