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Can I pay off a third party debt and legally pursue payment myself from the debtor?
Wiki User
∙ 13y ago
Yes, but only after executing a legal contract between you and ONE of the other parties (the creditor OR the debtor).
CONTRACT WITH DEBTOR (generally easiest route)
In this situation, you are acting like a loan consolidator where you are paying off the other loan(s) and. at the same time, making a loan to the individual whose loans are being paid of. You will need a contract that states what loans you are going to pay on behalf of the debtor, the terms of the replacement loan (including fees, interest rates, frequency of payment, amount of payment, etc.). You may include components concerning collateral, late payments, etc.
Once the contract is signed, you pay the debt and the debtor begins to make payments to you according to the terms of the contract.
CONTRACT WITH CREDITOR (much more difficult)
In this situation, you are acting like a factor where you legally buy the outstanding debt of a debtor (generally at a discount to face value) and takeover collecting the debt. Factoring is an old business and is used by a multitude of companies to increase their cash flow and reduce their cash conversion days. You will need a contract with the creditor that clearly states that you are buying the debt (receivable) of a particular debtor, you will get full and unencumbered ownership of the receivable and the creditor will no longer attempt to collect the debt. In addition, you will need to agree on price and collection process (how you choose to collect may be important to the creditor).
Once the contract is signed, you will now own the debt and you will be responsible for notifying the debtor that you are the new owner and are collecting the debt. Based on the country that you are in, you may need to follow specific laws in doing so (in the US, we have the Fair Debt Collection Practices Act - FDCPA). If you don't you may be fined and arrested.
Wiki User
∙ 13y ago
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If a person has not missed a payment to a credit card company and they cancel him can they garnish his wages?
If the account is considered in default because the payments were not the minimum required, then a creditor has the option to pursue litigation against a debtor. Before a creditor could garnish the wages of a debtor a lawsuit would have to be undertaken and a judgment entered against the debtor. The judgment could possibly be executed as a wage garnishment according to the laws of the debtor's state of residency.
What does the voluntary dismissal of a chapter 13 bankruptcy mean for the debtor and creditors and the debtor's credit report?
When any bankruptcy action is dismissed for any reason the debtor(s) lose(s) bankruptcy protection. This means creditors may pursue collection of the debt, including, in most situations filing a lawsuit. A chapter 13 bankruptcy dismissal will remain on the debtor's credit report for 7 years.
If you owe 20000 in credit card debt and you can pay 15000 in cash will the collection attorney work with you on the rest?
Yes.. the should set up a payment schedule for the balance. * The best option is always to pay the full amount owed if possible. If doing such represent a hardship on the debtor and his or her dependents then it is wise to try for a settlement instead. All creditors are reluctant to pursue a lawsuit or take the chance of forcing the debtor into bankruptcy and are usually open to accepting a lesser amount than what is owed.
You just received a notice on a credit card indicating that it was in the process of being charged off and was urged to make payment arrangements-- What exactly does this mean?
Within a 180 days of default a creditor must charge off the account. After which the account is sent to a collections agency who then follows established collection procedures. These are generally implemented in the form of letters and/or phone calls to the debtor. Collection agencies are obligated to conform to FDCPA regulations whereas original creditors are not. If suitable payment arrangements are not made, the agency that "buys" the account may decide to pursue legal alternatives.
If you marry in a community property state do you inherit the debt of your new spouse?
In the direct context, no. Indirectly the non debtor spouse would be affected because all marital property would be subject to creditor attachment if the creditor decided to pursue litigation.
Can a collection agency take you to court if you have not returned their calls or made payment arrangements but you send small monthly payments which they deposit?
Yes. It is a common misconception that a creditor or collector cannot pursue legal action if any payment from the debtor is accepted. Once a contract is in default the lender or collector can take whatever steps allowed under the laws of the debtor's state to recover monies owed.
If a person has not missed a payment to a credit card company and they cancel him can they garnish his wages?
If the account is considered in default because the payments were not the minimum required, then a creditor has the option to pursue litigation against a debtor. Before a creditor could garnish the wages of a debtor a lawsuit would have to be undertaken and a judgment entered against the debtor. The judgment could possibly be executed as a wage garnishment according to the laws of the debtor's state of residency.
What is the benefit of excussion in suretyship?
Excussion in suretyship allows the creditor to first pursue the debtor's assets before seeking payment from the surety. This benefits the surety by reducing their risk of having to pay the debt if the debtor has sufficient assets to cover it. Ultimately, excussion helps ensure that the surety is only held liable as a last resort.
Can a credit card issuer place a lien on your house if you are not paying at their rate in Virginia?
If you mean, not paying at least the minimal amount required by the lending agreement, then yes, a creditor can pursue litigation against the debtor. If awarded a judgment in most cases can use it as a lien against real property that the debtor owns. It is a myth that as long as a debtor makes some type of payment and the lender accepts it that the lender cannot refer the account to collections or file a lawsuit.
Can a bounty hunter legally pursue a fugitive from Kansas to Oklahoma?
Yes.
Can a us debt collection agency legally pursue a disputed 'debt' to the UK The dispute is for medical treatment in AZ that resulted in overdosing of pain killer drug resulting in prolong stay?
There are two parts to this question, thus two answers: A collection agency may pursue a debtor to where ever he goes. Many collection agencies have the ability to contract local agencies to recover the debt in what ever country the debtor resides. From personal experience, I have aided in the recovery of debts in the UK, Germany, Iceland, Norway, Spain, Canada, and Mexico. A dispute is mentioned. The dispute however does not absolve responsibility for a debt. Only the courts can do that. If, say, the patient had sued the healthcare provider for malpractice, and asked for release from payment obligation as part of the settlement, then the debtor would not be responsible. However, you cannot be absolved of responsibility simply because you are not happy with the treatment you received.
Do unpaid medical bills sent to collections ever go away without payment?
The non payment of any debt can result in a civil suit by the creditor. However, all U.S. states have SOL's which determine when a creditor can no longer pursue the debt through legal procedures. Please be advised, when the SOL applies it is the debtor's responsibility to bring forth that reason as a defense. Likewise, a creditor/collector can still pursue collection even after the expiration of an SOL by the usual methods, phone calls, letters and so forth. Even so, the debtor has the recourse to send the creditor/collector a letter of "cease and desist" which prevents future debt collection contact. If such a letter is rendered the creditor/collector must cease all contact with the debtor unless/until a civil suit is filed.
Do you have to pay a 1000 credit card charge off from 14 years ago?
In all likelihood the statute of limitations has expired and the holder of the debt cannot pursue legal action to recover monies owed, but it is not unusual for collectors to attempt to collect such debts, often, unfortunately through intimidation tactics. It would be in the best interest of the debtor to research the laws of the state in which he or she resides concerning this matter. Likewise, the debtor should not make any payment and/or payment agreement either verbally or in writing to repay the debt without having explored all the options. A debt of that age could not become a valid entry on the debtor's credit report.
Is the loan balance collected from the servicer in a foreclosure?
In a foreclosure the proceeds from the sale go to the servicer, who in turn remits those funds (minus any costs and fees owed to the servicer and its affiliates) to the investor on the loan (lender or agency). If there is a deficiency, the difference may be written off and a 1099c issued to the debtor, effectively ending the matter, or if legally allowable the lender may pursue the debtor through a collection agency or the courts.
What options do you have to protect your property from creditors when a chapter 13 bankruptcy is dismissed?
Once a 13 is dismissed creditors can pursue collection by whatever means allowed under the debtor's state laws, this usually includes lawsuits. The only viable choice for the debtor is to protect as much real and personal property as possible before a creditor has a chance to file a lawsuit. If the debtor has not been served a civil suit summons they may still legally transfer property, remove themselves from bank accounts, and so forth.
How do you settle a old credit card debt you are being sued for?
First the debtor should determine if the debt is valid. All states have SOL concerning creditor debt where the time limit is set for a creditor to pursue litigation to recover monies owed. If the SOL defense does not apply and the debt is valid the debtor can attempt to negotiate with the creditor for a less then the full amount owed and/or payment arrangements. Please be advised that the SOL defense is not automatic, the defendant must be the one to file on it. If the debt is negotiated in lieu of a hearing (trial) the debtor must be certain to obtain a written contract stating all the details and signed by the person of authority before making any settlement/payment. It is not advisable for the debtor to allow a creditor pursuing debt collection information to his or her personal finances such as a bank account.
What does the voluntary dismissal of a chapter 13 bankruptcy mean for the debtor and creditors and the debtor's credit report?
When any bankruptcy action is dismissed for any reason the debtor(s) lose(s) bankruptcy protection. This means creditors may pursue collection of the debt, including, in most situations filing a lawsuit. A chapter 13 bankruptcy dismissal will remain on the debtor's credit report for 7 years.
