by vicki m
(Anderson,SC US)

I sign for my daughter to buy a car. 1st payment was 11-19-2001 she made 11 payments and let it go back.They put a judgment on me 6-16-2003.tring to buy a house and this comes up.payoff at the time was $12,409.96 ,after applying proceeds 12161.65 and int 248.31 8.061% per annum from 5-28-2003 until date.so what do i need to do now.

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Dec 03, 2011
by: Debtcollectionanswers.com

If there is a judgment against you, you should pay it if you can. My sources indicate that in your state a judgment related to a written contract remains in force for 10 years and so that means that the judgment will stick around until about mid-2013. After that I assume your state allows the judgment creditor (the company that sued you) to renew the judgment for another 10 years, and so on. (I am not an attorney nor am I familiar with the law in your state, so if you want to confirm my information, consult with a consumer law attorney in your area; also, you may be able to confirm by calling your state Attorney Generals' office.) Bottom line, the unpaid judgment could haunt you for decades, making it difficult if not impossible to get new credit with reasonable terms -- like the house loan, for example. It can also affect your ability to obtain adequate insurance, certain kinds of jobs, and to rent a place to live. Also, at some point the judgment creditor may try to collect on the judgment -- garnish your wages, seize money from your bank account, put a lien on an asset you own, etc.. To take any of these actions however, it will have to get the court's permission first.

If you want to pay the judgment, but you can’t afford to pay it in full, consider contacting the judgment creditor to try to work out an affordable payment plan or to find out if the creditor will let you settle the debt -- pay it off for less than its full amount. If the judgment creditor agrees to one or the other, get all of the terms of your agreement in writing before you pay any money.

If you cannot afford to pay the judgment at all, you may want to talk with a consumer bankruptcy attorney in your area about whether filing for bankruptcy is a good option for you. If you qualify for Chapter 7 bankruptcy, you would not have to pay the judgment amount; if you qualify for Chapter 13 you would be able to pay the judgment over time under the protection of the bankruptcy court, which means that the judgment creditor would not be able to take steps to enforce the judgment -- garnish your wages, etc. Go here for a free consultation with a bankruptcy attorney.

You should also know that whatever you do, the judgment will remain in your credit history for 7 years from the date that it is entered or until the statute of limitations related to that judgment expires -- 10 years in your case; however, in some states whenever an unpaid judgment is renewed, the judgment can be reported for another 7 years.

One final comment. As you have found out, it's never a good idea to co-sign for someone else's debt, no matter how much you care for that person. When you do, you risk getting stuck with their debt if they do not pay it and if you can't pay it either, you risk having your credit damaged for a long, long time.

Feb 28, 2012
its ok
by: Anonymous

get a blender and have a cocktail...Enjoy!call
your daughter right away and tell her you love her...lifes to short...

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