I had a credit card default in 1999-2000. It is now being handled by a law firm who is threatening to garnish my wages. There is a judgment for a case that was filed in 2005, but I do not recall getting served, but there is a default judgment against me. According to the law firm, the last payment on the credit card was made in 2000. After that, it was sold to a collection agency in 2003. When did the statute of limitations end? Did it end when the last payment was made or when the collection agency purchased the debt? If the statute of limitations ended at the last payment date, did the firm have the right to file a suit? Would I be able to vacate the judgment? Answered April 24, 2013
The statute of limitations for credit card debts usually START from when the last payment was made, and ends after four (4) years for written contracts or open-ended, and two (2) years for unwritten accounts. After the appropriate time limit for the creditor to file a suit has passed, the debt is considered as a time-barred debt.
However, if the collection agency already filed a suit and a judgment has been made, the best course of action is to work with a lawyer who is an expert in cases involving debts. The attorney would know the next step, such as whether to file a motion or an appeal to reverse the judgment.