Legal Question in Credit and Debt Law in New York

What to do with debt?

Received summons from a lawyer office. Didn't respond. Default Judgment received. Called court it was filed with.They stated there was no court date because the judgment was not entered by a judge, but by the lawyers office. Is this legal? So far they have froze my checking account and the amount they show I owe has now doubled. I applied for a payday loan and since then I have heard from every single account on my credit report asking for money due. Haven't heard anything from anyone since 2000, since this is when most of the old debt is from. Current on things now. I understand that the SOL starts over if I begin to pay on these, so I really don't want to do that? Do I have any choice in the matter. I owe approximately $10,000 to various credit card companies. I haven't paid anything on any of them since 2000. Can I get these wrote off? Should I just contact a lawyer and let them tell me the best options? I am really stressed about all of this, but I deserve it because I did it to myself by being stupid with my credit back then. My credit is basically already shot, so would bankruptcy make it even worse? Can anyone please tell me what the best route to take would be. Thanks for your replies.


Asked on 2/17/05, 9:38 pm

1 Answer from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: What to do with debt?

The judgment is most likely from one creditor only ... not all of them. Paying on the judgment acknowledges it...as does any payment within 10 years.

There is a 6 year statute of limitations in which to bring suit on the breach of contract by the creditor.

The amount was entered via a clerk because you defaulted and it is absoultely properr...or else it could not have been done...it was for a sum certain. Interest run on the judgment at 9% yearly.

Good luck.

RRG

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Answered on 2/18/05, 7:15 am


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