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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Consumer Protection Law
Satisfied Customers: 16630
Experience:  Experienced Licensed Attorney
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GMAC (car) has a judgment in Indiana from 8 years ago in

Customer Question

GMAC (car) has a judgment in Indiana from 8 years ago in Indiana. Nothing was ever done, it's off my credit. NOW a Collection agency has it and filed in New Mexico a Writ of Garnishment. I didn't live in New Mexico. What recourse do I have if anything. They are holding $3500 from my bank right now and want me to pay another $3700. I have NEVER received anything from this Collection Agency nor a phone call. I had to get all this information from my bank after the garnishment on my checking/savings account.
Submitted: 11 months ago.
Category: Consumer Protection Law
Expert:  Alex J. Esq. replied 11 months ago.

Hello. My name is ***** *****

Thank you for your question.

I will be happy to provide you the information you are seeking for educational purposes only.

Did you owe the debt for which the judgment was obtained?

Did you contact judgment creditor attorney to see if a settlement could be negotiated?

Customer: replied 11 months ago.
I do owe the debt. I did not contact an attorney but have been in contact with Machol & Johannes since they garnished my bank account. Until then I had never heard of them.
Customer: replied 11 months ago.
I was willing to negotiate with them on an amount but they are giving me conflicting stories. The same person. I offered them a verbal settlement. They wouldn't take it and countered but only took off $1,000 of a $9,000 debt.
Expert:  Alex J. Esq. replied 11 months ago.

Thank you for your follow up.

Unfortunately, once a judgment is issued by the court, the judgment can be sold or assigned by the original judgment creditor to third party collection or law firms and there is no legal notice requirement that has to be given to the judgment debtor.

So, once judgment is obtained, is starts accruing interest, fees, etc...and that is why a small debt can multiply into much larger amount over 8 years and generally, the best option would be to try to negotiate a settlement with the attorneys for the current judgment holder / owner and in some cases the judgment can be settled for less than full amount lump sum payment or reasonable monthly payments might be accepted by the judgment creditor.

In any case, if the settlement is reached, it is extremely important that there is a written settlement agreement that states all the terms of the settlement clearly and that it is signed by both the debtor and the authorized person on behalf of current judgment creditor.

I wish you the best of luck!