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If a debt has been written off as bad debt on taxescan a creditor seek payment after they have written it off?
Wiki User
∙ 12y ago
Yes. "Writing off" debts to bad debt is a bit of accounting legerdemain, and not a legal waiver. Typically, original creditors only sell debt or sell the right and power to collect on debt after they have written it off.
Wiki User
∙ 12y ago
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If a creditor sends your payment back to you do you still owe the debt?
Yes. Once a contract has been defaulted on, the creditor has no legal obligation to accept any payment other than that which was agreed on in the original contract or subsequent agreement.
What is the statute of limitation in Minnesota for debt?
The length of time in all states of the US for a creditor to collect on a debt is seven years from the date of last payment, OR in the event a judgment has been obtained the creditor has ten years from the date of judgment or last payment, which ever is later.
Can a creditor be awarded double payment on a loan default that was signed by two people?
No the creditor only gets the original amount that was loaned (plus interest) regardless of how may co-signers there may have been.
I have been told that if you write Final Payment on your check that you give to a creditor and they cash it The debt is then considered paid whether there is a balance or not Is this true?
No, it is not true.
How long does a creditor have to file for a judgment?
The time limit for a creditor to file for a judgment depends on the statute of limitations in the specific jurisdiction or on the type of debt. It typically ranges from 3 to 10 years from the date the debt became due. It's advisable to consult with a legal professional to determine the exact time limit in a particular case.
What is a written statement showing that a payment has been made?
A receipt is a written statement showing that a payment has been made.
If a creditor has written off your debt can a collection agency then come after you for the amount?
If the debt has been cancelled, no; if the debt has been charged off, yes.
How can you find out if a debt has been written off?
The term "written off" does not mean the debt has been cancelled/forgiven. The term indicates that the original creditor will no longer continue to collect the debt in the usual manner. The debtor will receive a notice from the original creditor of whatever further action will be taken with the account.
What is a creditor to a company?
A creditor - is anyone who has supplied goods or services to a company (but has not yet been paid). For example... A retailer orders 100 bottles of wine... Once the wholesaler despatches the wine - they become a creditor - until the retailer pays for the consignment. The wine remains the property of the wholesaler until the retailer's payment clears the banking system.
Can you sue a creditor for not updateing my credit report after a payment was received?
Creditors update credit reports on their schedule, some update every month, others update every other or every third month. If you are in a hurry, contact the credit bureaus and have them contact the creditor themselves. You can sue a creditor, but you have to try contacting the creditor first (via mail), then file a complaint with the FTC, then contact the credit bureaus. If the account still hasn't been updated, you can go ahead and sue the creditor.
What are charge offs?
Charge offs are accounts that have been written off by the creditor as uncollectable. The debt owed is still valid and can be collected on either by the original creditor or by a collection agency. You can only erase charge offs by disputing them to the credit bureaus or negotiating the removal by the original creditor.
If you made late payments due to medical reasons can that be removed from your credit score?
Fair Credit Reporting Act requires that the creditor report your payment status accurately. That means that if you agreed to pay a certain amount on a certain day, then your account is "paid as agreed". If you miss a payment for any reason other than bank error, the account has not been paid as agreed no matter what the reason for the late payment. If you have medical issues that prevent timely payment, the best arrangement would be to make arrangements with the creditor prior to the conditions of the agreement not being met.
