I have recently been contacted by Morgan and Pottinger of Louisville,Ky. about an outstanding credit card bill.I made arrangements to pay the debt. While,I was making payments that went forward put a lien on my property which that said they would not do ,if I paid them.I have never been late on a payment now,they are threatening to garnish my wages. What rights do I have? The was 7 years old before they contacted me.Is there a statue of limitations? I have a contract with them.I have not broken my contract they are paid monthly on time. I even send my payment registered mail.Can I sue them?
By making payments on the debt, you restarted the statute of limitations. What's missing here is the judgment. If they got a judgment against you, you can check its validity (for example, were you served with the lawsuit papers?)/ If there is a judgment and it is valid, then they can collect against you.
There are facts missing from this scenario to give a definitive answer.
Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.
By acknowledging the debt and making payments you may have restarted the clock on the statute of limitatons. You should talk to a local attorney about reopening the default judgment.
When you find out that a judgment has been entered against you, normally by discovering that your wages are being garnished or the bank account has been frozen, you still have a couple of options.
In most States the Courts allow you to reopen and challenge a “default judgment”. Most States will allow a year to accomplish this. If you did not get the paperwork for the lawsuit, or you got the paperwork but never did anything, then the judgment was “entered” due to your default to file an Answer.
You have to bring a motion in the Court where the judgment is filed. That motion normally has to include a defense to the charges and a copy of your proposed Answer.
You should definitely get a local lawyer to help you with this, or seek the assistance of a Bankruptcy attorney to get rid of the liability. If you can’t afford a lawyer and you are being sued check out my website for a free form Answer.
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Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.