Legal Question in Credit and Debt Law in New York

Re: debt collection - account levy

The scenario you describe is highly unlikely. First they would have sent you demands for payment. Second they would have had to file suit against you and serve you with papers. Third, they would have sent you a copy of the restraining notice.

Nonetheless, to vacate a judgment in New York, you must show both: 1) a valid defense; and (2) a reasonable excuse for your failure to respond to the lawsuit.

The fact that their collection actions have placed you in financial distress is of no consequence. Assuming the debt is valid, you purchased goods and never paid for them. All they have done is collect (a portion of) what you owe.

Next time, don't ignore your bills and don't throw out legal papers.

Re: debt collection - account levy

You must go to the court in your jurisdiction and file a motion to have the judgment vacated becuase you were not served with a summons and complaint. Usually there is a clerk in the court that can assist you in preparing the motion papers. YOu have to state under oath you did not receive any prior notification of the claim against you. YOu also have to allege that you do not owe the amount demanded and set forth the legal basis (in summary fashion) for your defense. IF the debt was 10 years ago, you would say that the statute of limitations has expired. You could have other defenses as well. If you win your motion you have to ask for an Order of the court compelling whoever took your money to return it. Good luck.