Expert: Michael Brotherton - 12/22/2008

Question
My car was repossessed in the year 2000. I went to court and lost my case, and a lien was placed against me.

Is there a statue of limitations for liens? And if so, how long?

If I decided to open a savings/checkings, could they garnish the monies from my accounts?

Answer
In most states there is a statute of limitations on debt and on judgments. A judgment lien my last indefinitely if it is placed against a property but would expire if the judgment expires unless executed against real estate. Judgments may last for 10 or more years if not satisfied. However, a judgment lien is a recorded public notice and does not apply to bank accounts and other assets unless the asset is recorded as well. Bank accounts are private. A judgment creditor may attach a bank account if they can find it. And the only way that can happen is if you disclose the information to someone or they call you in on a debtor's exam where you must answer questions under oath concerning your assets, income, and other resources.

Collection attorneys can be resourceful and may have ways of getting certain information, particularly with the Internet and everything being done electronically these days. They could also "shotgun" garnishment notices to several banks in your vicinity with the hopes of hitting something. Sometimes they get lucky.

If you are planning on opening a bank account do so at a small town bank or credit union not so close to home or work. Do not use any of the major banks in your area and try to pay your major bills by money order. Its a pain but it could save you from attachment.

Your best bet, contact the creditor and make payment arrangements or offer a lump sum to settle the debt. Get it out of the way and you don't have to worry about them anymore.