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Please tell me the state you are in and the date of the judgment received against by the law firm debt collector, and when did you make your last payment to the creditor? Thank you and I will be happy to help you.
Thank you for the information. I do not need the exact last payment since the Judgment is not that old.
In Arizona a creditor has three years to bring a lawsuit against a debtor for non-payment. Look at the date they filed the Judgment and that is the date that must be within the 3 year period. If you were paying to the law firm you must go by the last date of payment, because you defaulted after you stopped paying.
In Arizona that statute of limitations is 10 years to collect on a Judgment that was entered against a debtor. However, many states allow judgments to be renewed one or more times, which could substantially extend the enforceability of a judgment, if the creditor is vigilant about the renewals. This can potentially result in a permanent legal obligation until it is paid.
It is legal for a garnishment to occur if a judgment is received against you and they can continute to garnish until paid in full with interest. The interest in Arizona is the Federal interest rate plus 5% max.
You could have asked for the Judgment to be vacated if you filed a statute of limitations defense but only if done within one year of the Judgment.
You may be stuck with this Judgment, even if it was filed outside the statute of limitation period. It can't hurt to contact a consumer law attorney and see if it is worth fighting.
So your original question is just was it legal for them to do it in the first place?? Unfortunately yes, it was. However now that you have the debt discharged, the debts are gone and they can no longer attach property or bank accounts.
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