How Many Times Can a Judgment be Renewed in Oklahoma?

If you have not kept up in paying a credit card or loan debt, then you may be pursued by a debt collector or creditor. There are many ways in which a creditor can legally pursue collecting a delinquent debt. But before this can begin, a judgment must be obtained.

Judgments are obtained by the creditor going to court to receive a judgment. To go to court, you will first receive a summons. You will need to respond to the summons to get a chance to plead your case. If you do not respond, then the creditor will be given a default judgment against you.

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Default Judgments Allow Creditors to Collect on Debt

The judgment overall is a declaration by the court that the creditor has the legal right to demand a wage garnishment. Default judgments occur when you do not respond to a debt case put against you, and allow the creditor to begin collecting on your debt.

The Statute of Limitations in Oklahoma Can Protect You

In Oklahoma, a judgment creditor can attempt execution of a judgment for five years from the date of the judgment. This is known as the statute of limitations. After the statute of limitations has expired, it becomes unenforceable by the operation of law.

Although the judgment is still owed and can be paid, it is not possible to go to court over it any longer. Additionally, once the appropriate action is taken to keep the judgment from becoming unenforceable, the judgment must remain enforceable for another five years.

Creditors Must Renew a Judgment Before Time Runs Out

Judgments expire after a certain number of years depending on the state they are present in. To prevent this from happening, the judgment creditor must file a request for renewal of the judgment. This must be done before the statute of limitations runs out.

After this time runs out if the judgment is not renewed, it will not be enforceable any longer. It is also important to note that if you renew a judgment, it cannot be renewed again until a certain point.

When the judgment is renewed, the interest that has accrued will be added to the principal amount owing. From that point on you will be required to pay interest on the accrued interest.

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Oklahoma Judgments Can Be Renewed Indefinitely

In Oklahoma, a judgment is good for five years. This means that the statute of limitations will expire within this time. Despite this, a judgment can be renewed indefinitely in Oklahoma by taking appropriate action at least every five years. This timeline is outlined in 12 OK Stat § 735.

Know What to Expect After a Judgment Is Obtained

If a judgment has been placed against you, then you will end up in a somewhat sticky situation. Following the judgment, the creditor will then be legally allowed to place a levy on your bank accounts or place a lien on your property. They also have the option to garnish their wages in an attempt to pay themselves back.

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The most common method to enforce a judgment in Oklahoma is wage garnishment. When wage garnishment occurs, the creditor who has obtained the judgment against you will contact your employer. Then your employer will be legally required to deduct a portion of your wages each pay period and send the money to the creditor.

In Oklahoma, there are two forms of acceptable garnishment in reference to a judgment.

1. Continuing garnishment

Also known as wage garnishment, this allows the creditor to garnish up to 25% of your disposable earnings (according to OK Stat. Title 12-1173.4(I)(1)).

You can claim an exemption from wage garnishment such as for “undue hardship to the consumer's family and/or dependents.” under (15 U.S.C. sect; 1673; OK Stat. Title 31-1.1.) Oklahoma courts determine undue hardship as the following:

• Standard of living
• Standard of living in comparison to the minimal needs of your family and dependents
• Standard of living in comparison to the minimal subsistence standards in regard to basic shelter, food, clothing, personal necessities, and transportation.

  
  Also, garnishment of Social Security benefits or pensions for consumer debt is not allowed federally.

2. Non-continuing garnishment

This is essentially a bank levy, which allows the creditor to take non-exempt money directly from your account. This may also result in a bank account freeze while they take funds from the balance of your account to pay the judgment.

Oklahoma allows a bank account levy to be exempt for the following reasons:

• Social Security benefits
• Supplemental security income
• Unemployment benefits
• Workmen's compensation benefits
• Welfare benefits
• Veteran's benefits
• Certain classes of pension
• Retirement fund
• Disability benefits
• Civil Service Survivor annuities
• Prepaid burial benefits
• Proceeds of group-life insurance policies
• Alimony
• Child support payments

Stop Worrying About Judgments Not Renewed Within 5 Years

Dealing with a judgment against you is never a fun process, but you do have options. Overall if you are in the state of Oklahoma it is important to remember that there is a five-year period in which a judgment can be renewed. After that period the judgment can no longer be renewed nor brought against you.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance