Posts

Showing posts from June, 2013

Arkansas Supreme Court Issues Ruling on Writs of Garnishments (Creditors Rejoice)

This morning, the Arkansas Supreme Court issued a very pro-creditor ruling in Primus Automotive Financial Services v. Sherry Wilburn and Kevin Wilburn, 2013 Ark. 258, which was an appeal from Sebastian County, Arkansas Case No. CV-761. The sole issue on review was whether the issuance of a writ of garnishment tolled the statute of limitations on a judgment for an additional ten year period.

The Wilburns purchased a Kia Sportage back in 1999.  The loan was with Primus.  Primus sued the Wilburns for repayment of the loan after the Wilburns missed payments.   A judgment by default was entered by the circuit court in 2002, the car was sold at auction and a deficiency judgment for the balance was entered against the Wilburns.

Arkansas has a ten year statute of limitations to execute on a judgment, but the limitations period can be extended if the judgment is properly revived.  Sometime before the ten-year statute of limitations period expired, Primus caused a writ of garnishment to be is…