Legal Question in Credit and Debt Law in New York
Old Student Loan - Old Judgment
my boyfriend defaulted on a student loan in 1977
no payments were ever made, NYSHESC received judgment in 1986
still no payments made, tax refund taken maybe twice in the past, judgment was not renewed after 10 yrs. (no notice of renewal ever received)
Now in Jan. 2003 they contacted my boyfriend with a notice of administrative wage garnishment. He requests a hearing, and they offer him to rehabilitate the loan instead of garnishmnet making small (75$) monthly payments for 1 year (original loan amt $4000, with interest, etc amount =$14000) Then they say the loan would be taken out of default status.
No reference to this loan, or judgment appears on any of his credit reports (due to 7 yr reporting period?)
After 10 years without renewing the judgment can they still collect on this?
In 2006 it will be 20 years. Can they still collect after that time has passed. By paying the $75 per month has he restarted the SOL Clock? I'm sure at $75 a month it will not be paid by 2006. What happens to the judgment after 20 years has elapsed?
Thank you
1 Answer from Attorneys
Re: Old Student Loan - Old Judgment
Judgments are enforceable for 20 years. They expire only as a lien against specific property if not "renewed" before the expiration of 10 years, but they still act has a general liquidated lien as against property. I do not know if during enforcement the judgment can expire, my guess is NOT. I would check with the COUNTY CLERK wherein the judgment was either entered and/or docketed. TO extend a judgment beyond 20 years an action on the judgment must be commenced by the judgment creditor before the expiration date. Again, I am not sure that a judgment in active collection can expire. It does not come up much, I guess. Judgments earn interest at 9% per annum.
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