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You are being sued for an account that was closed over 5 years ago when you Went on disabilityand had disability insurance which should have paid it so What do you do?
Wiki User
∙ 13y ago
There are a couple of issues involved here. You should likely have a lawyer to assist you. This in itself does not constitute nor is it intended to constitute legal advice, not is an attorney-client relationship created or intended.
First, all States have statutes of limitations, which provide that lawsuits based upon different theories of law must be commenced within a stated period of time, or else they will be time-barred. Therefore, the answer to your question will depend in part upon the State, whether the account was founded on a written instrument, and when you made the last payment. As to the latter, making a payment on an account is often held to keep the account "alive", thereby tolling the statute of limitations. You need to consult a lawyer in your jurisdiction for specific advice as to this.
As to the disability insurance issue, in general, disability insurance is meant to replace lost income when you cannot work due to a covered cause of loss. By and large, you are free to use the disability payments for anything you need to use them for.
However, there are forms of disability insurance that are sold and purchased for the express purpose of paying a stated debt in the event of your disability. These are often sold in connection with a major purchase that you plan to pay for over time. If this is what you have, it is important that you reported the disability to the insurer so that claims process can be triggered.
You should also send copies of the summons and complaint to the insurer so that, if there is coverage, it can be handled. Additionally, contact the person or entity (or its attorney if it has one) immediately and explain the situation, giving him/her all salient information. In the meantime, attend all hearings and follow all instructions pertaining to the lawsuit so that a default is not entered against you; it is in this area that a lawyer will be of particular help.
Wiki User
∙ 13y ago
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The entry to close the appropriate insurance account at the end of the accounting period is what?
Insurance account is expense account and expense account is closed in income summary account. Insurance account should be credited where as income summary account should be debited
What is a closed account permanently mean?
A account that has closed permanently is when a account has been closed forever basically.
What does Account closed by consumer mean?
The wording "Account closed by consumer" means that "you", and not the lender, closed the account. It usually indicates that there was no problem on "your" behalf with the account.
Can you deposit a personal check into a bank account that is closed?
No, the account is closed.
How do you find your account new world life insurance company?
I have had the account closed that the premiums were debited from & have not received anything from Farmers in regards to this policy when I inquired prior to the credit union closing.
Can i delete my videos On YouTube after i closed my account?
If you closed your account, then your videos won't even be on youtube anymore. i closed it today .. and i was shocked to see my videos still on .. !! even my friend .. closed his account and the videos are still On !!
When was Closed on Account of Rabies created?
Closed on Account of Rabies was created on 1997-12-09.
What actors and actresses appeared in Account Closed - 1955?
The cast of Account Closed - 1955 includes: Dennis Price
Can a bank keep a direct deposit if account is closed?
No, they have to send it back to where it came from...that is, unless the closed account was negative.
If your bank account says EFT Charged Off does this mean that the account is closed?
If an account is charged off it is automatically closed. It is listed as uncollectable debt.
Should you re-open a previously closed credit card account?
No. If the account has been closed, you would need to re-apply if you wanted an account.
Which account would be closed by posting a debit to the account?
The closing process seeks to reduce the balance of each account that needs to be closed to zero; therefore, the closing entry must reverse whatever balance the account already has. This means that any (temporary) account that normally has a credit balance will be closed by posting a debit (and vice-versa). Revenue is an example of an account that must be closed with a debit, since it is normally a credit account.
