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Ask Barrister Your Own Question
Barrister, Attorney
Category: Legal
Satisfied Customers: 33159
Experience:  15 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 26 yrs
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Is it legal company to renew a judgement every year?

Customer Question

Is it legal for a company to renew a judgement every year? It will be 10 years this one creditor have been after me. I live in Michigan.
Submitted: 5 months ago.
Category: Legal
Expert:  Barrister replied 5 months ago.
Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question..Can you tell me what you mean by the company renewing a judgment every year?.Were you sued by a creditor in court with them getting a judgment against you for a debt?.How are they "renewing" the judgment each year?,.Are you being forced to come to court and answer questions about your assets and employment?..thanksBarrister
Customer: replied 5 months ago.
It was a for a car. They refused to honor my warranty. So we went back and forth about them fixing the car. My husband got tired of us going back and forth so he told them to come and get the car.They later said that they sold the car in auction and got 1400.00 but we never saw proof of that. We were called into court about 8 or 9 years ago but nothing after that. We just keep getting letters from the court that they renewed this judgment. Its been 10 years in june
Customer: replied 5 months ago.
They also run my credit report whenever they feel like it, causing a hard inquiry?
Customer: replied 5 months ago.
Are you there?
Expert:  Barrister replied 5 months ago.
Ok, if you were actually sued on the debt with them getting a judgment, then that judgment is good for 10 years under MI law. So they normally wouldn't be "renewing it" each year... it is good for 10 years and then they can renew it for another 10 and continue doing so until it is paid. But if they did want to renew it every year and incur the expense of doing so, there is nothing under the statute that would prevent it...although it would be kind of pointless..With that said, since this is a valid debt, they can make an entry onto your credit report as long as they keep the judgment "alive" by renewing it every ten years..Give me a second to research something else....thanksBarrister
Customer: replied 5 months ago.
But they renew it every year. So each year adds on another 10 years?
Expert:  Barrister replied 5 months ago.
Ok, under the Fair Credit Reporting Act (FCRA): . According to the FCRA, a person can access your credit report only if:A court has ordered that the credit information be shared.That person is a lender and you are applying for some form of credit. A creditor may also pull your report if you currently have an account open with them or if you have a balance that's past due.The person is working on behalf of an insurance company that's underwriting your insurance or a government agency that is considering giving you a license or other public benefit, such as social services.An individual has requested your report for employment purposes and has obtained your written authorization to view it.A person can prove a legitimate business need to view the report. You have given clear instructions to the credit reporting agency to release your information to a particular person..So a judgment creditor could claim that they have a "business reason" to check your report...As for renewing it, that would only extend it for one year each year they renew it... So it would back up the 10 year limit by only one year if they are renewing it each year... For example, they renew it in is good until 2025... They renew it in is good until 2026....So it only extends it by a year each time if they are renewing it each year... But it would keep it on your credit report..If this isn't something that you would want to contact them to see if they would settle, then you might consider filing bankruptcy to extinguish the debt permanently so you could start rebuilding your credit....thanksBarrister
Customer: replied 5 months ago.
We have contacted them several times. They refuse. At one point I was on public assistants and theybwanted ne to prove all that to them. My mother said she would help pay the debt if they would settle for the amount they had already taken plus a little more. They refused. At this point they have gotten what the original debt was 10 years ago. But due to them renewing and adding interest its still a balance.
Customer: replied 5 months ago.
They placed a lien on my house and recieve our State tax refund every year. So how arw they able to renew every year for the original balance?
Customer: replied 5 months ago.
Also, its no longer listed on my credit report.
Expert:  Barrister replied 5 months ago.
They just renew the original judgment that they were given. That doesn't mean that is what you owe if you have been making payments, or if attorney fees and interest have been added in over the years....So if they won't settle, then you are kind of stuck with either requesting a full payoff amount good until a certain date and then paying it off or filing bankruptcy to finally extinguish the debt if you had other debts you could also get rid of an few assets...If they aren't reporting it as renewed, then it would drop off after 7 years, even though it is still enforceable...thanksBarrister
Customer: replied 5 months ago.
Do I go to the judge and request this payoff good for a certain?
Expert:  Barrister replied 5 months ago.
No, you would have to send the judgment creditor a certified letter requesting a payoff amount good until a certain date. I would put it out at least a month so they have time to respond to your letter..But this is a link to a pretty good letter you could use if you wanted to offer to settle..Debt Payoff Request Letter..thanksBarrister