Today's screwed up story

[CornField]

In Sept. 1995 a city government won a judgement against my future husband (We don't know what the judgement was for -- just that it was about $300). So, money was taken from his state tax returns to pay off the judgement.

Fast forward to the present. We are now in the midst of filing bankruptcy and our lawyer calls to ask us about this outstanding judgement from 1995. After much telephone hopping and speaking to close to every person employed by the city, I learn that the original judgement was paid off, but not the initial interest... which has been sitting there since 1996 building even more interest. The interest owed is now larger than the original judgement.

And people wonder why my hair is gray...

[indy_azcat]

1. Don't statute limitations kick in on this after 7 yrs? n/t

[Gothmog]

4. Limitations do not apply once there is a judgment

The statute of limitations is the time that you have to bring a claim. Once a claim is reduced to judgment, it can linger forever. In Texas, you have to renew a judgment every ten years which is simply a filing in the deed records.

[indy_azcat]

7. ...but if they don't renew it goes away?

So for IA, if they didn't renew it after 6 yrs, it's past the limits?

http://www.cardreport.com/laws/judgement-sol.html

[Rainbowreflect]

2. I do not believe it is legal to charge interest on interest.

[indy_azcat]

3. I think it's compounded

they had a principal of X and interest Y at the outset, and paid X - but then interest Y gets added to X new interest Z gets calculated on X (now $0.00 + Y) and so on and so forth.

Compounded, no?

[TNOE]

5. Can't you bankrupt on the interest

since you're bankrupting anyway? I believe after the debt is 3 years old, you can - so screw um and file on it.

[Jesus Saves]

6. Wow

I would think they would have a duty to contact you to inform you of that building interest.