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Can a creditor obtain a judgment against a debtor who was not served papers and no longer lives in the US?
The action a creditor can take depends on the time frame, the state the person resided in, and the type of debt. In most cases a court will allow a creditor to file suit in the party's previous residential state. If the person has any property or open bank accounts, a judgment award can be executed against them. And yes the person's credit will be damaged.
What else can I help you with?
What is the statute of limitations for a creditor collection in new York?
Probably none. In the US when it is a civil suit by a creditor for debt owed the law requires that only a reasonable attempt to notify the debtor that they are being sued needs to be made. In other words, if the debtor refuses the summmons, the summons is sent to the last known address but the debtor no longer resides there, a person other than the defendant accepts the summons, and so forth; the lawsuit can go forward and a default judgment can be entered against the defendant debtor. Consumers are often confused about statute of limitations for debts and assume that once the deadline has passed a lawsuit will not be filed, that is a misconception. The creditor can still legally file suit and the suit can be heard and a judgment entered if the defendant does not appear and present the expiration of the state's SOL as a defense. The exception is that a debtor must be notified that a judgment has been entered against them, but again that notification in the majority of US states only needs to qualify as a reasonable attempt to contact. The best option would be to consult with an attorney who is qualified in creditor-debtor laws.
How does wage garnishment work?
Simple version: The creditor sues the debtor and is awarded a judgment. The creditor executes the judgment as a wage garnishment. The garnishment papers are served on the garnishee's employer. The employer withholds the amount stated in the garnishment order from the named employee's wages until the debt is satisfied or the garnishment order is no longer valid.
What happens when a judgment is not renewed?
When a judgment is not renewed, it typically expires after a certain period, which can vary by jurisdiction, often ranging from 5 to 10 years. Once expired, the judgment can no longer be enforced, meaning the creditor loses the legal ability to collect the debt through court actions. Additionally, the debtor's credit report may reflect the judgment for a limited time, but its impact diminishes once expired. As a result, the debtor may find it easier to obtain credit after the judgment lapses.
Is a junior valid after foreclosure?
A junior lien is no longer valid as against the property after a foreclosure. However, the creditor can still go after the debtor and any other assets they may have to try to get the debt paid.
Can a creditor call you at your workplace in Pennsylvania?
Yes, but only if the creditor has not been informed that the debtor does not want to be contacted at the place of their employment. Once the creditor has been made aware of such they can no longer legally make contact at the debtor's place of business. The debtor can render the notice verbally but it is strongly suggested that said debtor send a 'cease and desist' notice via registered mail to the creditor(s). The letter should state all the places and/or methods that the creditor(s) cannot contact the debtor, (i.e, place of employment, educational facility, home, family members home and/or cell phone, landline, internet, etc.).
Can a creditor put a lien on the property you just sold?
Your lien would be ineffective if the debtor no longer owns the property. If the property was foreclosed- the debtor no longer owns the property.Your lien would be ineffective if the debtor no longer owns the property. If the property was foreclosed- the debtor no longer owns the property.Your lien would be ineffective if the debtor no longer owns the property. If the property was foreclosed- the debtor no longer owns the property.Your lien would be ineffective if the debtor no longer owns the property. If the property was foreclosed- the debtor no longer owns the property.
What is a Certificate of Satisfaction?
A Certificate of Satisfaction is a legal document issued by a creditor to confirm that a debtor has fulfilled their obligations under a debt agreement, typically indicating that the debt has been fully paid. This certificate serves as proof that the creditor no longer has any claim against the debtor for that specific debt. It is often used in real estate transactions to clear liens or encumbrances, ensuring that the debtor's financial record is updated accordingly. Receiving this certificate can help improve the debtor's creditworthiness and facilitate future financial dealings.
Should you write to the collections agency and tell them that you have no assets so stop threatening me about legal action?
The debtor may take such action, but it is quite likely to be feudal. Even though the debtor is currently 'judgment proof' as determined by the laws of the residence state it does not mean he or she always will be. Many collectors will seek a judgment to be filed and held until said debtor acquires some property against which the judgment can be executed. Perhaps the best option if for the debtor to discuss his or her financial situation with a qualified attorney to make certain he or she is indeed judgment proof. Most attorneys offer free or minimal fee consultations. Likewise, most will agree to write creditors explaining the debtor's situation and requesting that they no longer seek contact with that person. Please be advised, when such action is taken the attorney will charge a flat fee for each letter. If the creditor chooses to pursue a suit and the debtor receives a summons, the debtor must consult with the attorney again to determine what if any further action they wish to take. The initial fee for the correspondence will not include any fees pertaining to defense of a civil suit.
What is a dissolution of writ of garnishment?
A dissolution of writ of garnishment refers to a legal process that terminates a garnishment order, which is a court order allowing a creditor to collect a debt directly from a debtor's wages or bank accounts. This dissolution can occur for various reasons, such as the debtor paying off the debt, a court finding that the garnishment was improper, or a change in the debtor's financial situation. Once the writ is dissolved, the garnishment stops, and the creditor can no longer access the debtor's funds through that mechanism.
If there is more than one name on a judgment what would happen if you filed bankruptcy on it?
The other person becomes solely responsible, if one party has filed bankruptcy and is no longer responsible for it. If both parties file bankruptcy within a relatively short time of each other then neither of you will be responsible for the amount owed. * The exception would be if the judgment has been "perfected" as a lien against real property. In such a case the judgment creditor becomes a secured creditor and the judgment will not be dischargeable under bankrupcy law.
What action can be taken if a debt collection agency sued you and default judgment was passed for an unpaid debt if you are temporarily out of the country for a 1 year assignment?
A motion or application for an order vacating or setting aside the judgment may be made if service of the complaint had not been made properly. Before a judgment can be entered against a debtor, the complaint must be served on the debtor personally or sometimes if the court allows, by certified mail. If the debtor was not served with the complaint because he was out of the country and if he did not know about the lawsuit, the judgment entered would be void. But because the judgment is on the public record as a judgment, the debtor has to ask the court to set it aside. If the court agrees that the judgment should be set aside, it will enter an order vacating the judgment , but it will also reinstate the case as if it were just filed. By filing the motion to vacate the judgment, the debtor has automatically acknowledged service of the complaint, so there is no longer a need for the plaintiff to serve it and the case will start again. In addition to this, a debtor in that situation should also review very carefully the documents the collection agency filed in order to prove to the court that the debtor was properly served. If that "proof" was falsified, the agency could be in violation of state and federal debt collection laws, perjury laws and contempt of court rules.
Are bad debts that are written off taxable or not?
"Written off" does not always (usually) mean a debt is not still collectible. The term "forgiven" indicates that the creditor no longer considers the debt valid. When a debt is forgiven the debtor will receive a 1099C from the creditor/collector and a copy is sent to the IRS.. The debt is then considered income and must be reported on the debtor's tax return as such.
