Can a creditor sue for unsecured debt?
* An unsecured debt, generally, is a debt that is not backed by collateral. For instance a car loan is secured by the security interest the lender has in the car. A credit card which is not backed by collateral is not secured by collateral therefore it is an unsecured debt. Generally, yes a creditor can sue for unsecured debt, the creditor just doesn't have any interest in the good that formed the basis of the loan.
If the debt was a secured debt, yes...if it was unsecured, doubtful they will do this unless it's a large sum of money.
Yes. That is what judgment liens are all about. A creditor can sue you in court and if successful obtain a lien against your real estate.
A creditor can sue in court to obtain a lien against a debtor for an unsecured loan. If successful in the lawsuit, the creditor can request a judgment lien that can be used to take the debtor's property to pay the amount due. A creditor can sue in court to obtain a lien against a debtor for an unsecured loan. If successful in the lawsuit, the creditor can request a judgment lien that can be… Read More
Can an individual unsecured creditor not a credit card company get property such as a computer back if the bankruptcy was discharged and they were notified of it but are now making demands?
If the debt was truly unsecured and you properly listed the debt in the bankruptcy, then the debt has been discharge. If the creditor persists in violating the discharge order, the creditor could be held on contempt of court and held liable for fines and attorney's fees.
No. While both tranches of debt are unsecured (no collateral pledged in support of the debt obligation), by definition, senior unsecured ranks higher in the capital structure than subordinated debt, meaning that senior unsecured creditor claims will receive payment prior to subordinated debt creditors upon bankruptcy of the debtor.
No they can not sue you.
Yes, once a debt collection agency buys your debt from the original creditor they are legally entitled to all of your debt. Therefore, they can take you to court for any unpaid debts, so long as it is the debt they bought from the original creditor and only that debt.
Debt CAN be settled with credit card debt and other unsecured debts. Negotiating a settlement is between you and your creditor and settlements have happened for millions of people and helped them get out of debt.
If a collection agency has either purchased the debt from the original creditor, or obtained an assignment of it from the original creditor (to collect on its behalf), generally, it can sue for collection.
There is no such thing as unsecured debt. There is debt that is not secured by collateral. There is debt that is secured by your signature on a contract. And, yes, if the creditor has obtained a judgment against you for credit card debt, they may serve your employer with an order of garnishee and secure up to 25% of your paycheck per pay period.
The debtor does not sue. The creditor does. And yes, these suits generally include the debt, interest accrued, and the costs associated with collecting, such as attorney fees.
Charging off the debt has not impact on the creditor's ability to sue. Charging off is simply a write-off for tax purposes. A creditor can sue any time prior to the expiration of the statute of limitation regarding of whether or not the debt has been charged off. The applicable time deadline will vary from state to state and depending on the type of debt.
It would depend on what the term "trying to pay" means. Once a debt goes into default it is due and payable in full. Any creditor that takes payments on a defaulted debt is doing so outside of the bounds of that contract as a courtesy. So, if the debt in question has been defaulted, then yes, the creditor may sue you and take all remedies available to them under law.
The statute of limitations of unpaid debt is the time period that a creditor has to collect a debt. When the time period has passed, the creditor can no longer sue you for the unpaid debt. The time is set in each state and can vary from three to 10 years.
The creditor must sue in civil court. if it prevails they can request the court issue a judgment lien. Once the judgment lien is recorded in the land records your property cannot be sold or mortgaged until the lien if paid off. Once the judgment is issued the debt begins to accrue interest. In Massachusetts the rate is 12%.
After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court. After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court. After the foreclosure of the first mortgage… Read More
Yes. It's possible, but unlikely. When a debtor doesn't make a payment between 4-6 months, the creditor must make a decision. But keep in mind that credit card debt is unsecured, meaning that the creditor has no collateral as security for the loan. They have several alternatives: 1) they can do nothing and hope that you will soon make a payment. 2) they can continue to try and collect from you. 3) they can sell… Read More
Yes. The lender can sue you also for fees, costs, and penalties incurred in the attempt to recover the debt.
The percentage paid to unsecured creditors in a Ch 13 is determined by your disposable income. Secured creditors get paid at 100%, house and car payments remain the same. What's left over gets paid out to those unsecured creditors who file proofs of claim. If a creditor does not file a claim, then that creditor does not get paid.
Yes, they can. I'm not an Attorney, but working in a Law Firm as Legal Assistant, I've seen time and time again how Debtors have been hauled into court over unsecured debt, losing the case and having a lien placed on their home.
If a debt on your credit report says 'bad debt write off ' can the creditor still sue you or collect the money?
= If your credit report reports that you have a bad debt write-off, then it means that the original creditor has written off the debt, but they can still sell the rights to the debt to a collection agency and they can contact you and take legal action.
Yes. If they sue the debtor and win a judgment the creditor or collector can execute the judgment in accordance with the laws of the debtor's state. Texas, Pennsylvania, South Carolina and North Carolina are the only US states that do not allow wage garnishment for creditor debt.
If you are in default on an account that a third party/person bought, yes indeed, the new owner can foreclose on you and sue.
In general, an unsecured debt cannot lead to the forfeiture of a solid asset like a house. Unsecured debt is not tied to collateral.
If all unsecured non-priority claims are discharged can a creditor that was included in the discharge have a judgment lien on a property?
Following your supposition, if he had a lien then he wasn't an unsecured creditor, and if only unsecured were discharged, he wasn't.
All debts should be paid, regardless of being secured or unsecured. However, if you are involved in a bankruptcy then the trustee will provide both the debtor and their creditor with the list of what, if anything, is being paid, adjustment, and/or monthly payment to expect.
Yes, they can. Credit issuers hire law firms that specialize in collection of debt including lawsuit action. A credit card is defined as "unsecured debt" this does not mean that the creditor has not legal recourse to recover monies owed. It simply means there is no specific property that secures the debt, such as a vehicle or other real property. Merchant accounts such as Sears are secured debts, because the item purchased is considered collateral… Read More
It goes on the credit reports as a delinquency Answer: If you don't pay your credit card debt then to your creditor may take you to civil court and can get a judgment to hold your property. There are other penalty as well if you dont pay your credit card debt.
Creditors holding unsecured priority claims
Yes. A creditor can sue for a debt and if they get a judgment they can use the judgment to garnish the debtor's wages.
If the debt is for a mortgage that's secured by real property the signed mortgage should be recorded in the land records. Otherwise, if the debt is unsecured and not in default then you are not entitled to a lien. There must be a default before you can sue in court and obtain a judgment lien.
Yes. A debt repayment program other than a chapter 13 bankruptcy, does not confer legally binding terms on creditors to prevent them from seeking litigation. AN exception obviously would be if the creditor has signed an agreement agreeing not to file a lawsuit as long as the debt repayment obligation is met. It is however, very doubtful a creditor would agree to such.
Yes, the lender/creditor can sue the debtor in the state court in the county where the debtor resides for the debt owed regardless of where that debt was incurred. In some cases, the lender/creditor can send the defaulted account to the National Board of Arbitration bypassing the usual court procedure of a lawsuit. The debtor will be notified in advance of any litigation the lender/creditor chooses to take.
How do you get a lien removed from a property deed if the debt was paid off in a chapter 13 bankruptcy?
You must have the lien avoided in the bankruptcy court. This has to happen before the bankruptcy case is closed or you have to petition to have the case re-opened. LIENS SURVIVE BANKRUPTCY UNLESS YOU SPECIFICALLY MOVE TO HAVE THEM AVOIDED. Let me add to the last post. Most of the time, the creditor who has the lien is listed as unsecured, even though they are technically secured. You need to review your bankruptcy to… Read More
If the debt was sold to a collection agency and the original creditor accepted payment AFTER the debt was sold, the money does not belong to them. If, however, you paid the debt and it was mistakingly sol after that payment, the collection agency can't try to collect. If you have proof of payment, forward it to the collection agency and deman in writing that they cease trying to collect this debt.
It is owed until it is discharged in bankruptcy or paid, either in full or as a settlement. Technically, the debt is owed after discharge in bankruptcy, but the creditor or its agents and successors in interest are permanently enjoined from any collection activities.
A person can find unsecured debt consolidation loans online. Some websites that offer unsecured debt consolidation loans include LendingTree and Prosper.
Yes. It is a misconception that credit card issuers do not have legal recourse for recovering money owed simply because the debt is considered "unsecured". Unsecured debt only signifies that there is no specific property attached to the debt itself. The debtor can be sued for the amount owe plus legal costs and other fees. If the plaintiff/creditor wins the suit (they always do) a judgment is enterered against the debtor/defendant. A judgment can be… Read More
Credit cards are considered unsecured debt. Unsecured debt simply means that specific property has not been used as collateral to "secure" the debt. A creditor can use standard collection methods such as phone and mail contact, as long as they do not violate the FDCPA. The creditor also has the option of filing a lawsuit against the debtor. If a creditor wins a suit (and they always do) a judgment will be entered against the… Read More
No, PA. does not allow wage garnishment when it pertains to creditor action. Even though a credit card is unsecured debt, that does not mean the creditor does not have legal remedies for collection. They can file a lawsuit, if they win they will enforce a judgment in several ways, bank account levy, liquidation of nonexempt property, or liens against real property.
Would a creditor come to your home country of Indonesia and sue you if you have 30k in debt from the US?
He doesn't need to come to your home country. The creditor only has to petition the US court, get a judgment against you and send you notification of such.
No, credit card debt is a unsecured debt. Unsecured debt refers to any type of debt or general obligation that is not collateralized. Hope this helps, My Plastic Wallet www.myplasticwallet.com
A secured debt - is protected by being tied to something valuable (jewellery, car, house etc). If you default on the repayments, you could lose the item the debt is secured on ! An unsecured debt is not tied to any physical property. If you default on an unsecured debt, they will usually take you to court and have the debt recovered from your wages.
You have high unsecured debt can creditors get lien against your home or the equity of your home which is partially paid off?
If the creditors sue you for unpaid balance they can put a lien on your home if it is in your name.
You should not have paid any unsecured debt after the chapter 7 was filed. All unsecured debts were discharged. If you made the mistake of continuing regular payments on an unsecured debt after filing, you may have reinstated the debt. If in doubt, consult a local bankruptcy lawyer.
A creditor can sue you over a debt. If you are paying them anything at all or offering to pay them anything at all, they aren't likely to sue you just to make you pay a higher dollar amount per month.
What is the worst case scenario if an unsecured creditor wins a judgment against an insolvent individual who has no means of paying it?
You question already describes the worst case scenario. The unsecured creditor hires an attorney, spends money to get a judgment and then can't collect the judgment. It is possible that the debtor may become solvent again. Then again, that person could also file for bankruptcy and the discharge could bar you from ever collecting that debt.
Yes. A lawsuit is still viable even if the debtor is actively participating in a debt repayment plan. It is unusual for a creditor to take such action however, as it is added expense and aggravation and often there is no certainty that a creditor would be able to execute a judgment.
Probably. Almost any type of suit can get into court, whether or not that suit will be allowed to go forward and the plaintiff (person who is suing) will be successful depends upon the merits of the case. Not knowing what type of lawsuit is being referred to, it might be helpful to add that a misconception many people have is in regards to credit cards being an unsecured debt. Unsecured debt does not mean… Read More