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If the original credit card issuer sells a defaulted account can the purchaser of that account obtain a judgment against the debtor account holder?
Wiki User
∙ 16y ago
Yes. Once an account has been sold it becomes the property of the collector/collection agency that buys it. The collector can then file suit against the account holder debtor for the amount owed and if a judgment is awarded against the debtor it can be enforced in whatever way allowed under the laws of the debtor's state to collect the debt that is owed.
Wiki User
∙ 16y ago
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Can you be sued if you pay something on a defaulted credit card?
Yes. If the account is not paid as agreed in the original contract the creditor can sue the debtor, but they ususally try to avoid legal action.
How does a derogotory tradeline become a collection account and what is the difference?
They are two different issues. A derogatory (negative) trade line is a record of a consumer's past and current buying and payment activities. A collection account is generally an account that has been defaulted on. It some cases it refers to the original creditor or the OC collection representative. Or it can be in referance to a third party that has purchased the account.
Can credit card judgment take money from your bank account?
Most states allow a judgment creditor to conduct a bank account levy to help collect a judgment. The exact procedures vary by state and they have to be able to find your account somehow.
Can your Federal tax refund be garnished by collectors?
Not directly. Once the funds have been deposited into a bank account a judgment creditor could levy the account for the debt owed. There are several factors that come into play when it relates to the attachment of a bank account by judgment creditors. For example, how the account is set up, JT, JTWRS, TBE, and so forth. The majority of U.S. states only allow a creditor to levy and account once. After that the creditor has to return to court and have the judgment refiled as a second levy if the full amount of the debt was not obtained in the original action.
If you have defaulted on credit cards can they seize the car you own?
Theoretically a creditor/plaintiff can sue, win a judgment and execute the judgment against non-exempt property owned by the debtor/defendant. If the state's vehicle exemption does not give adequate protection against a creditor judgment it could be seized and sold, but that is highly unlikely. Judgment holders prefer to use wage garnishment or bank account levy to recover monies owed, instead of the hassle of taking possession of real property and all the responsibility that goes with it.
Can you be sued if you pay something on a defaulted credit card?
Yes. If the account is not paid as agreed in the original contract the creditor can sue the debtor, but they ususally try to avoid legal action.
How do you find out the original lender and account number of a judgment when all you have from the credit report is a docket number and the county?
Take the docket number to the county recorders office and get a copy of the judgment. The information on the judgment will give you the name of the lender.
If your debt with a judgment against you has been sold can the judgment still be on your credit report from the original creditor effecting your credit report twice?
No, it's the same account and the new creditor is simply taking over the same rights as the original creditor.
What information does the creditor need about you to report you to the collection bureau?
Creditors obtain all the information they need to report defaulted accounts to credit bureaus when the account holder fills out the original application/agreement.
How do collection agencys find your work number if not on record?
Collection agencies buy defaulted accounts from original creditors. The original creditor supplies all the information to the collectors that was obtained upon the opening of the account. (Name, SSN, place of employment, etc.).
How do you know if a levy was placed on your bank account?
The bank should notify the account holder that the account has been levied by a judgment holder. Also, the account holder/judgment debtor should have received a final notice of judgment citing the action the judgment creditor is taking.
What is a bank account levy?
A bank account levy is one method for a judgment creditor to recover monies owed for a debt. The judgment holder files the writ of judgment with the clerk of the court where the judgment was entered against the judgment debtor as bank account levy. I If the judgment is allowed to be executed, the sheriff will serve the writ for levy (garnishment) of the debtor's account on the bank where the account is held. The bank can either honor the writ and release the funds up to the maximum of the judgment or request the court to "freeze" the account and decide whether or not the judgment writ is valid. When an account is joint and only one account holder is the judgment debtor, the bank will usually request the account to be frozen. It then becomes the responsibility of the non debtor account holder to provide documentation to the court proving the amount of funds belonging to them.
How does a derogotory tradeline become a collection account and what is the difference?
They are two different issues. A derogatory (negative) trade line is a record of a consumer's past and current buying and payment activities. A collection account is generally an account that has been defaulted on. It some cases it refers to the original creditor or the OC collection representative. Or it can be in referance to a third party that has purchased the account.
Can a creditor freeze bank accounts in New Jersey?
A judgment creditor can levy a bank account(s) held by the judgment debtor. An account can be frozen by the court when it appears that funds might be removed and/or transferred to avoid the judgment levy or to allow the judgment debtor to claim exempted funds in the account(S) or when the account is jointly held by a person who is not a judgment debtor. A joint account holder who is not a judgment debtor is required to present documents proving to the court the amount of funds that belong to them and which are not subject to a judgment levy. In some instances when an account is held jointly by a married couple and only one spouse is the named debtor the entire account will be exempted from a judgment creditor levy.
Can a credit card issuer access a personal checking account to pay an account that has been written off?
If there is a valid judgment against the account holder, the judgment creditor can levy the bank account to recover the monies owed according to the terms of the judgment and the laws of the state in which the account is held.
In Maryland can a joint bank account be levied when only one person is the judgment debtor?
Yes. A judgment creditor can levy a joint account and request the bank freeze account funds until a decision is made on the percentage of ownership each account holder is entitled to. Joint marital accounts are sometimes viewed differently if they are allowed to be held as Tenancy By The Entirety and the original account application/signature card specifically states those terms.
Can credit card judgment take money from your bank account?
Most states allow a judgment creditor to conduct a bank account levy to help collect a judgment. The exact procedures vary by state and they have to be able to find your account somehow.
