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What to do if a creditor still says that you owe them after a cancellation of debt?
Wiki User
∙ 17y ago
Ask the creditor to send you written verification of the debt including all of their documents after incurring the debt. If the cancellation of the debt is not indicated in their documents, then dispute the debt by providing your written notification of cancellation of the debt to the creditor and if unsuccessful, then dispute the debt with the credit bureaus who will initiate an investigation with the creditor and the credit bureau will usually repond to you in 30 days. If no response from the creditor then it will usually be deleted from your credit report. If the collection harassment continues then ignore it realizing that probably no legal action will be taken against you or you can contact an attorney to contact the creditor. Either pay the debt or file bankruptcy.
Wiki User
∙ 17y ago
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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.
You paid your debt but creditors are still reporting it on your credit report as unpaid?
(An extension to my original question) My husband has said that there's something in the FACT Act or the FACTA act that states that we can bring a claim against the creditor that still has not changed my credit status to paid on my report, (and sue them?). It was paid Nov 2008 and it still says we owe. Furthermore, the original creditor is still reporting as well saying that they have never received confirmation (from the current creditor) that the debt was paid. We have been refused a home loan because of this. . . Is this true? Do we have a case to bring against them? -Ash
What if your out on worker's comp unable to pay your bill's you try to make payment agreement creditor says it's not acceptable can they sue you or can a collection agency who brought the debt sue you?
First, collection agencies do not typically buy debts. They recover them under contract for the original creditor. Second, regardless of your ability or lack of to pay, the debt is still owed. By law, the creditor need not accept anything less than the amount owed or balance in full. Third, keep all records of payments made to all creditors including mortgage and utilities and basic living needs, plus all income received, and when you receive the service to appear in court, show up and present this all to the judge. He will not likely forgive the debt, but he will order payment arrangements based on what you bring, especially if you have in writing any refusal to accept payments, and this will reflect poorly on the original creditor.
If items are reaffirmed in bankruptcy but the credit report shows a 0 balance and the items were discharged through bankruptcy do you still owe the creditors?
You always "owe" creditors after a bankruptcy, they just can't try and collect.If you reaffirmed the debt, you can be held liable.Reaffirmation means that you are (re)assuming liabilty for the debt. Ignore what the credit report says, check with the creditor.Not true. Bankruptcy discharge means that the debt no longer exists. Perhaps you are thinking of the defense of statutory limitation on collection?I agree with Nate. The Bankruptcy Code, in 11 USC 524, says:"(a) A discharge in a case under this title- (1) voids any judgment at any time obtained...(2) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor...."My interpretation is that the Code says the debts are uncollectable and void but does not say they cease to exist. If they ceased to exist, then the creditors could not write them off as bad debts on their own taxes, nor could credit reporting agencies continue to use the bad debts to influence the debtor's credit score (which they most certainly do), nor would the debts continue to appear on the debtor's creditor report at all (which they do). I agree with Nate that what the credit report says in irrelevant: if the debt is reaffirmed then the debtor owes it. If the amount of the debt is actually $0.00 then no problem, but what the contract between the debtor and the creditor says trumps anything the credit report says. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Can you challenge a debt?
Absolutely! It is your right as a US citizen to challenge anybody who says you owe them money. If they cannot produce the proof that you owe them that debt, then they cannot legally attempt debt collection on you.
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.
You paid your debt but creditors are still reporting it on your credit report as unpaid?
(An extension to my original question) My husband has said that there's something in the FACT Act or the FACTA act that states that we can bring a claim against the creditor that still has not changed my credit status to paid on my report, (and sue them?). It was paid Nov 2008 and it still says we owe. Furthermore, the original creditor is still reporting as well saying that they have never received confirmation (from the current creditor) that the debt was paid. We have been refused a home loan because of this. . . Is this true? Do we have a case to bring against them? -Ash
What makes a secured creditor a secured creditor?
A secured creditor is one who has a contract with you that says if you fail to pay, the creditor can take a specified item you own to satisfy the debt. Most common are purchase-money loans, such as mortgages or car loans, but it can be any item.
What if your out on worker's comp unable to pay your bill's you try to make payment agreement creditor says it's not acceptable can they sue you or can a collection agency who brought the debt sue you?
First, collection agencies do not typically buy debts. They recover them under contract for the original creditor. Second, regardless of your ability or lack of to pay, the debt is still owed. By law, the creditor need not accept anything less than the amount owed or balance in full. Third, keep all records of payments made to all creditors including mortgage and utilities and basic living needs, plus all income received, and when you receive the service to appear in court, show up and present this all to the judge. He will not likely forgive the debt, but he will order payment arrangements based on what you bring, especially if you have in writing any refusal to accept payments, and this will reflect poorly on the original creditor.
How much time after repossessiondoes lien holder have to report debt cancellation to IRS?
An IRS tax lien will stay on your credit history for seven years after it's paid, says Rod Griffin, director of public education for Experian.
Your credit report says bad debt write off but you have been paying them every month for 2 years can they still report as delinquent 120 days?
I've seen this done before. It's the credit report agency who determines it counts as being delinquent; not the actual creditor. It will be fine once you are done with the payment program but it'll hurt for now.
Can a collection agency who says they are with a law office sue you if they purchased your debt three years ago from the original creditor in Arizona?
Yes, a collection agency that has purchased your debt can sue you for the outstanding balance, even if it has been three years since they acquired the debt. However, the statute of limitations for debt collection in Arizona is 6 years, so they have up to 6 years to take legal action against you. It is important to seek legal advice and understand your rights in this situation.
If a recorded judgment against a debtor is listed incorrectly is it exempt from that bankruptcy proceeding?
There's lots of details that can change how that situation comes out, such as the nature of the judgment and which chapter of bankruptcy was filed. But, generally speaking, the Bankruptcy Code says that the debt is discharged if it is properly listed OR if the creditor had notice or actual knowledge of the bankruptcy filing in time to act to protect their rights. In 11 U.S.C. 523, the Bankruptcy Code says "(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt- (3) neither listed nor scheduled under section 521 (1) of this title, with the name, if known to the debtor, of the creditor to whom such debt is owed, in time to permit- (A) if such debt is not of a kind specified in paragraph (2), (4), or (6) of this subsection, timely filing of a proof of claim, unless such creditor had notice or actual knowledge of the case in time for such timely filing; or (B) if such debt is of a kind specified in paragraph (2), (4), or (6) of this subsection, timely filing of a proof of claim and timely request for a determination of dischargeability of such debt under one of such paragraphs, unless such creditor had notice or actual knowledge of the case in time for such timely filing and request;" So, even if the judgment is incorrectly listed, if the creditor had notice or actual knowledge of the bankruptcy in time to act before the bankruptcy case was over, then the judgment is probably still discharged. There is also case law that says that a debt which was inadvertently not listed or incorrectly listed in a Chapter 7 "No Asset" case is still discharged if it would have been discharged had it been listed (though not all Courts subscribe to this view). However, it is my understanding that an unlisted debt in a Chapter 13 is not discharged since that creditor didn't have the opportunity to file a Proof of Claim and get some of their money back. In Chapter 7 cases, debtors who miss a creditor may also file a motion to reopen their case and add creditors they missed or listed incorrectly so long as those debts were incurred before the bankruptcy case wad filed and still get those debts wiped out. The Bankruptcy Court charges (as of 2/11/05) $155.00 to reopen a case and $26.00 to add creditors, plus there's usually additional attorneys fees to do this. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
If you have a medical bill that you forgot to include in your bankruptcy are you still liable to pay for it even if it was done before you file bankruptcy and later found out the insurance didn't pay it?
Yes, it is still considered your debt, even though you have had a bankruptcy discharge. You could try reopening the BK filing and adding the debt on. That however is complicated and expensive. Your best option IMO, is negotiate with the creditor. The Bankruptcy Code says a debt is not wiped out if it was not listed (see 11 U.S.C. 523(a)(3)), but there is some case law (not applicable in all jurisdictions) that says it IS wiped out in a Chapter 7 case IF it was inadvertently missed, IF the Chapter 7 was declared a "no asset" case, and IF the debt was of the sort that it would have been discharged had it been properly listed. In this situation, one could call their bankruptcy attorney and ask how much it would cost to reopen the case and add the creditor to the bankruptcy. The Court charges a reopen fee of $155.00 and an amendment fee of $26.00, plus the attorney would charge his or her fees to do the work. Then, one could ask the medical creditor how much they would settle the claim for. Whichever is cheaper is probably the best thing to do. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Is there any new law for qatar visa on cancellation that is ban changed to 6 months?
Some says the cancellation visa in Qatar was just 6 months. My friend who was working in Hamad resigned and come back after 6 months. So the news was really true that the visa cancellation banned changed to 6 months.
If items are reaffirmed in bankruptcy but the credit report shows a 0 balance and the items were discharged through bankruptcy do you still owe the creditors?
You always "owe" creditors after a bankruptcy, they just can't try and collect.If you reaffirmed the debt, you can be held liable.Reaffirmation means that you are (re)assuming liabilty for the debt. Ignore what the credit report says, check with the creditor.Not true. Bankruptcy discharge means that the debt no longer exists. Perhaps you are thinking of the defense of statutory limitation on collection?I agree with Nate. The Bankruptcy Code, in 11 USC 524, says:"(a) A discharge in a case under this title- (1) voids any judgment at any time obtained...(2) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor...."My interpretation is that the Code says the debts are uncollectable and void but does not say they cease to exist. If they ceased to exist, then the creditors could not write them off as bad debts on their own taxes, nor could credit reporting agencies continue to use the bad debts to influence the debtor's credit score (which they most certainly do), nor would the debts continue to appear on the debtor's creditor report at all (which they do). I agree with Nate that what the credit report says in irrelevant: if the debt is reaffirmed then the debtor owes it. If the amount of the debt is actually $0.00 then no problem, but what the contract between the debtor and the creditor says trumps anything the credit report says. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Can you challenge a debt?
Absolutely! It is your right as a US citizen to challenge anybody who says you owe them money. If they cannot produce the proof that you owe them that debt, then they cannot legally attempt debt collection on you.
