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     | Saturday, April 22, 2000 - 03:30 pm  I was talking with a fellow student at college this morning and they were having problems with a creditor. The creditor got a judgment against them about 4 years or so ago and was unable to collect on it. The creditors attorney has now contacted them but the amount is $1500 more than it was on the judgement. They are trying to do something called an execution but the sheriff told her not to worry because she has nothing of value. I told her the most I could figure is they are charging her interest. Does anyone know if this is legally correct or not? Any advice I can direct her too?
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| | Saturday, April 22, 2000 - 04:40 pm While she may not have any immediate assets that can be levied, the judgment,depending on state, can be renewed and collectible indefininately. The fees can rack up. A judgment is subject to 10% interest. Take the figure she owes x it by years, get a daily interest and whammo. It's best ,especially if they are still interested in her after all this time, that she try to work out a negotiation of the balance. She can offer 50% of the debt and work from there. If she leaves it as is, it will sit on her credit until paid and then be reported for 7 years from the date she satisfied it not when it was filed, of course. Moreover, they can get a jump on her and execute a levy anytime. Who want's to worry about that forever. Positive Example: I have a client with a 2,730.00 judgment from 6-1-96. We just negotiatied with the judgment creditors attorney to pay 1,105.00 as full satisfaction. A satisfaction of judgment was filed last week. K.Feathers CarreonandAssociates.com
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| | Saturday, April 22, 2000 - 04:57 pm Thank you for the information. I am going to print up your response and give it to her one Monday.
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| | Saturday, April 22, 2000 - 05:05 pm Good Luck to her!
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| | Friday, April 28, 2000 - 10:29 pm Sean E-mailed me the following: --------------------------- "The truth is that judgements bear interest at the "legal rate" of interest, which varies from state to state and may be smaller, equal to, or greater than the maximum (usury) rate. See http://www.lpitr.state.sc.us/bills/189.htm for some information on South Carolina's legal rate of interest. California's legal rate of interest is 10 percent per annum compounded yearly. There is no indication from the poster as to what state they live in." ---------------------------- I do mention frequently that States have their own laws regarding MANY issues. Maybe I could add a reminder to the "New Message" page? Appreciate Sean pointing this out.
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