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How do I stop a wage garnishment from a time-barred debt?
Anonymous4 views3 answers
Debt collector- Midland Funding. According to credit report, original creditor is more than 7 years old. Creditor is not reporting on any of my credit reports from the 3 credit bureaus. This is a time barred debt. Original debt: $8, 239 and they are charging interest of $2,500. According to the Federal Trade Commission, charging interest is illegal. They just garnished over $800 from my current paycheck. Who do I contact to stop this? What paperwork needs to be filed? How do I get the money that they garnished returned to me?
I think you are confused. There is a judgment. You first need to discover how that happened without your knowledge.
Once there is a judgment, interest accrues. You need to seek assistance ASAP.
Raising the issue of a time barred debt has to be done as an affirmative defense to the lawsuit. The only way you can stop a wage garnishment is by the collection lawyer withdrawing it, payment in full, or filing a bankruptcy. A bankruptcy will stop it immediately, and the debt will be discharged more than likely. The other thing that can be done is to file a motion in the state court to set the default aside. The facts and circumstances would have to be reviewed. Either way, you should contact a local bankruptcy/debt defense attorney asap. Many offer a free consultation.
The Statute of Limitations applies to the time when a lawsuit was filed. It is an affirmative defense, which means that when you are sued, you must file an Answer alleging violation of the SOL and then prove that defense at trial. If you do not file a Answer (or other pleading) with the court when you are sued, you waive that defense. In your case, a judgment was entered against you. If you were not properly served, you can file a motion to set aside the default, but you should have an attorney represent you in connection with such a motion.
