This is a new one for me - Court order bank levy

[TakeItAll]

I do not yet have the actual files in this case because the court claims that there has been no activity in the case.

What little information I do have will be listed below.

On or around 2007, a certain attorney contacted me about a hospital bill I never paid. If I recall, I didn't pay the bill because I didn't think Advil should be $40 and band-aids, $10. I was a young dummy I guess.

In 2008 or 2009, they won a default judgment. The amount was $920. I have no idea if I was served but I am waiting on all docs from the court. It will take a while because and docs they have are from an inactive case. Fair enough. 

Two months ago, I sold my house. A title company found the judgment and wanted it fixed before the closing. I tried calling the attorney on file but he claimed that another attorney had it.

I called that attorney several times to discuss the matter only. I never got a hold of him and he never called back. I, therefore, was required to leave twice the amount in Escrow until the judgment is up (which is soon).

This is where things get ugly. In the last few days, my bank tried to contact me. As it turns out, this new attorney, for which I have NEVER had contact with, put a court-ordered freeze on about $4000 in one of my accounts. I called the bank. They gave me his name and number. He is likely the lowest of the low in the attorney world. Even attorneys don't like him. 

I called the attorneys office and asked for any information they could give me. He said he would speak to the attorney and get back to me but it might be quicker to get it from the courts. I did that today. There is nothing anyone can see recent at the courts so I will have to wait until they pull them.

So, the questions. Can an attorney who has never contacted me put a freeze on my bank account?
I am in New York. Can they even collect past 6 years SOL? My understanding is that medical bills have a SOL of 6 years. Or does that not count if they have a default judgment against me from nearly 10 years ago?

The money is still in my account but an attorney I spoke with (very quickly) said that the court order is forthcoming. Not sure where he got that from.

Thoughts? Are the four times the original amount interest and other fees?

Any help would be greatly appreciated. 

 

 

[WhoCares1000]

Here are some thoughts that come to mind immediately:

1. You probably should have gotten the case files 2 months ago. The title company should have been able to tell you which court the case was in. This might hurt your chances at vacating the judgement
2. It is possible that sewer service occurred. If you can prove that you were not served that long ago, you might have a chance to get this vacated but that is a remote possibility at this point.
3. I am shocked that the judgement was not paid out of the proceeds of the sale of your home at closing. Most of the time, this gets found in a lien check and I am shocked they did not put a lien on your home.
4. The SOL on judgements in New York is 20 years to they certainly can collect after sitting on the judgement for 10 years. In fact, at New York's interest rate (see below), that is a great return on investment to sit on a judgement and wait.
5. Interest on a judgement in New York is 9%, set in the 1970s and never adjusted for reality of today's rates. At that rate, even a $1000 can balloon to $4000 in 9 - 10 years without any fees.
6. Once a judgement is issues, I don't think any other collectors can add any fees to it. Just the legally allowed interest which on a medial bill, is the state rate.
7. It is legal for a judgement creditor in New York to attach bank funds that are not considered exempt under state or federal law.

Technically, you owed the money regardless of your viewpoints on the cost of drugs and medical supplies. At this point, let them have it and the only thing you should demand is that they file a Satisfaction of Judgement with the court and send you a copy. You can try to fight on improper service if you wish but I think a judge is going to ask why you did not bring this up 2 months ago before the levy hit.

[Guest usctrojanalum]

20 hours ago, TakeItAll said:

So, the questions. Can an attorney who has never contacted me put a freeze on my bank account?
I am in New York. Can they even collect past 6 years SOL? My understanding is that medical bills have a SOL of 6 years. Or does that not count if they have a default judgment against me from nearly 10 years ago?

The money is still in my account but an attorney I spoke with (very quickly) said that the court order is forthcoming. Not sure where he got that from.

Thoughts? Are the four times the original amount interest and other fees?

Any help would be greatly appreciated. 

 

 

Judgments can be enforced for 20 years from the date of docketing.  Interest at 9% per year compounded annually can really add up, especially on a judgment that is very old. 

If the new attorney did not serve you with a notice about the judgment generally, then they have not complied with CPLR 5222(d) and (e). The actual notice that must be sent is actually written directly into the statute. 

The only pitfall there really is that the attorney only has to send it to the last known address, and if the address is not updated then the statute says too bad for the judgment debtor. 

You could make a motion to vacate the restraining notice on those grounds, but it might not be easy to do yourself.  CPLR 5222(e) is very long winded and not easy to understand.