Can I get my judgement vacated?

[thrillsoft]

In 1994 I started a business with 2 partners in Nebraska. I was the President and ran business while the other two partners maintained their full-time jobs. After about 6 months, one of the other partners bought me and the other partner out.

During the time that I ran the business, we leased a credit card machine which I signed for. After the other partner took over, she quit paying for the credit card machine and about 3 years later when I was living in FL, I was served with papers that I was being sued by the credit card company in a MA court. I was just starting another business at the time and could not travel up to MA for the hearing (I was 24 at the time and very stupid). I also thought that since the business was sold and the other partner agreed to be responsible for the bills, I really didn't have much to worry about.

The company (Leasecomm) got a default judgement on me. It doesn't show up on my credit report, but I do notice that they put an inquiry on my CR about 6 months ago. They also have started writing me letters (not certiifed or anything) trying to collect on the judgement every month for the last 5 or 6 months.

The FTC sued this company and settled for a stipulated judgement that in which Leasecomm agreed to vacate the judgements of 27,000 people it sued in connection with "business opportunities" it sold which amounted only to a credit card virtual terminal and when people couldn't pay (because they weren't sold an actual business opportunity that would allow them to make money and pay for the lease), Leasecomm sued them out of their local jurisdictions in MA and got default judgements instead of sueing in the consumers' home states.

Link Here

This FTC lawsuit and settlement doesn't include me because I was not sold a business opportunity, but only a credit card machine.

However, another individual sued Leasecomm for similar collection practices of obtaining a default judgement out of state of the consumer and her lawyer was able to prove that Leasecomm is a criminal organization under Federal RICO statutes and won her a settlement of $187,000.

Link Here

My question is... Is there any way that I can get my judgement from 1998 in MA vacated? I have none of the paperwork from when I sold the old business in Nebraska and I didn't use an attorney. The attorney that handled the deal and drew up the papers worked for the person buying the business, but it did state that she would take over all debts (that was the main thing in selling it) but I can't find the paperwork at this point (10 years later).

SOL in MA is 20 years on judgements. It was 6 years to get a judgement wich it appears that they did get the judgement in time back in 1998.

Is there a SOL on getting a judgement vacated? Didn't they violate FDCPA by suing me in MA when I lived in FL and they have since been sued and a stipulated judgement ordered for such practices?

[divemedic]

I don't really know about the rest, but IMO this is not a "debt" under the FDCPA, and is therefore not covered by the act. Fees for a credit card machine would not be for "household purposes" and is not a debt.

[thrillsoft]

I don't really know about the rest, but IMO this is not a "debt" under the FDCPA, and is therefore not covered by the act. Fees for a credit card machine would not be for "household purposes" and is not a debt.

Very good point. I never thought of that. I'd think that would apply to the other cases they had where judgements were vacated. Those were for "business opportunities" which basically amounted to a credit card virtual terminal and instructions to go get a website and start charging customers.

Also, this judgement was regarding a business in Nebraska for a contract signed in Nebraska, the company (Leasecomm) has offices in Nebraska. I lived in Florida at the time of the lawsuit, but they chose to sue me in MA. That right there is just shady. Anyone can see that. They have been sued by the FTC for such practices as well as other consumers who have one on the grounds that they are a criminal organization.

I hope that I have some grounds upon which to get my judgement vacated. It's not on my credit report. I could just pay them and not worry about it. But this is now a $6,000 judgement for a $200 credit card machine that someone else has and was obligated to pay for. It just doesn't seem fair to have to pay so much for something I didn't even use.

[Methuss]

You will need to find some proof of the sale of the business and all its interests to the other party.

If there were articles of incorporation, check with the State of Nebraska for the records of transfer.

County records where the business was established should have the assumed name license on file if it was a sole proprietorship. The new owner would have had to file for either a new or transfer of the assumed name.

Lastly, you can try the IRS, if you can remember the person's name who bought the business. It may cost some bucks to have it researched, but they should be able to cross reference the business name and the new owner name to show the taxes collected.

Any of these should be sufficient to show you had no controlling interest inthe company and the other person was liable. You could then try to get it vacated for false prosecution.

[thrillsoft]

You will need to find some proof of the sale of the business and all its interests to the other party.

If there were articles of incorporation, check with the State of Nebraska for the records of transfer.

County records where the business was established should have the assumed name license on file if it was a sole proprietorship. The new owner would have had to file for either a new or transfer of the assumed name.

Lastly, you can try the IRS, if you can remember the person's name who bought the business. It may cost some bucks to have it researched, but they should be able to cross reference the business name and the new owner name to show the taxes collected.

Any of these should be sufficient to show you had no controlling interest inthe company and the other person was liable. You could then try to get it vacated for false prosecution.

I do know the name of the person who bought it. I also know that they ran it for several years under various forms. I haven't talked to the person since then. If I contacted her about the sale records, it would definitely raise suspicions on her part especially since the split wasn't the most amicable. In fact, the sale included a settlement to me if I agreed not to sue her for slander.

The company was a corporation (an "S" corp). I did however have to sign a personal guarantee on the lease for this credit card machine. Does that make a difference?

[thrillsoft]

You will need to find some proof of the sale of the business and all its interests to the other party.

If there were articles of incorporation, check with the State of Nebraska for the records of transfer.

County records where the business was established should have the assumed name license on file if it was a sole proprietorship. The new owner would have had to file for either a new or transfer of the assumed name.

Lastly, you can try the IRS, if you can remember the person's name who bought the business. It may cost some bucks to have it researched, but they should be able to cross reference the business name and the new owner name to show the taxes collected.

Any of these should be sufficient to show you had no controlling interest inthe company and the other person was liable. You could then try to get it vacated for false prosecution.

Also, can you tell me exactly who (what department at the State of Nebraska) I must write to and what records I must request in order to request the updated articles of incorporation or whatever other records I need to prove the sale of the company?

[thrillsoft]

Okay, another question about this. There is a judgement in MA. I live in NY now, but will probably be moving back to FL soon. How does this affect my judgement in MA? What are the laws relating to foreign judgements? If they seek to have their foreign judgement entered in my home state, can I fight it at that point? If so, what if I win that?

Now that my credit is vastly improving, I REALLY want to guard against old skeletons popping up.