0
Debt Collection
Debt collection is a legal and necessary practice when products or services have already been provided but the consumer has not paid for them. Some companies use collection agencies to pursue payments on debts owed by persons or businesses.
5,393 Questions
My bank is threatening foreclosure are they willing to accept a payoff lower than the amount owed?
Maybe, but no homeowner knows in advance how much a bank will accept or even whether it will consider an offer for less than the total amount owed. The best idea is to speak with the bank about getting the principal reduced in a loan modification or allowing the borrowers to pay less than what is owed in order to sell the house in a short sale.
Am I in a debt collection process?
The easiest way to find out if you are in a debt collection process is when a debt recovery agency contact you or the creditor some times handle debt collection inhouse.
Usually collection agencies send a demand letter but that depends after the creditor turn to collections their receivables
Is child liable for a deceased parent's debt?
As long as the child is not a cosigner on the debt, the child is not responsible for parent's debt. The parent's estate would be responsible for the debt. Technically this could reduce the inheritance the child receives, but it is not the responsibility of the child.
If debt is written off do you still have to pay it?
Yes, you still owe the money regardless of the creditor writing off the debt.
The reason why a business would do this is to balance their accounting books. This is mostly because unpaid, or aging, account receivables is considered an "current asset" and under Generally Accepted Accounting Principles you can not keep it as such after a period of time, especially after a year.
It also a very common practice in businesses at the end of a tax year to do the bulk of the write offs, to reduce their taxable amount. Since the money you owed was not paid, so they should not have to pay taxes on the hope of one day getting paid.
What does it mean Foreclosure hold state?
Foreclosure Hold State signifies the ability to place a foreclosure action on hold. Meaning if there is a typical borrower forebearance review, litigation/contested action, the foreclosure is placed on hold to allow time for forebearance or contested action to be reviewed.
Saves both borrower (if attempting to reinstate/payoff loan) and Servicer, with avoidance of fees/costs accumulating due to foreclosure actions.
Can a bank account be garnished if you have someone else on your account in V irginia?
Yes, as both account holders both own all of the assets deposited within the account, and regardless of who deposited what.
If it is a regular sale negotiation, the potential buyers will not know for sure what other potential buyers have offered for the property. Offers can be kept confidential between the buyer and lender, unless either party wants to disclose to another person the amount of the offer.
Thus, there is no way to know for sure if the bank has another, higher offer for the same property in foreclosure. Either call the bluff by walking away, or submit a better offer if it is still within your price range.
In a foreclosure public auction, where properties are bid on for the highest price, the bids are usually taken out loud or read aloud by the county sheriff, and the highest bidder wins -- there are no other negotiations.
In the state of North Carolina can wages be garnished for unpaid medical bills?
Yes, any debt can eventually result in wage garnishments, however it requires a court order that can only occur in a post-judgment lawsuit.
Can a creditor still charge interest rates if they are garnishing your wages?
If you have a garishee against your salary can the creditor still charge interest.
Thanks
Theo
How soon can a vendor send a client's account to a collection agency?
There is no law that restriction how long a creditor or business must hold a bad debt before forwarding it to a debt collections agency.
In a foreclosure can a lender sue you for heloc?
If homeowners owe money on their HELOC (Home Equity Line of Credit), and are not paying the loan back, they can be sued for foreclosure.
The HELOC is secured by the real estate, and the mortgage company has a lien on the home. When the borrowers signed for the line of credit, they agreed that the bank could foreclose on their house if they fell behind on the payments.
Can a minor's bank acct be garnished?
No, a minors bank account can not be garnished, if they are the only person on the account. If this is a joint account and the non-minor is subject to a judgment then it can be levied or garnished.
Collection acct removed but original creditor still remains?
Yes, reporting to your credit by a collections agency does not effect the reporting originally made by your creditor. It most normal cases you would see the original creditor having reporting the account as a "charge off" regardless of any reporting made by a collections agency afterwords.
No, under Federal law most Federal benefit payments like Social Security benefits, Supplemental Security Income benefits, Veteran's benefits, and Railroad Retirement benefits are not subject to garnishment. They are exempted funds when deposited in your bank account and only lose that status if moved into any type of investment product, even a bank certificate of deposit (CD).
Will disputing a old debt on your credit report restart the statute of limitations in NY?
No, only making a payment, promising to make a payment, or providing a letter of reaffirmation of the debt can reset the statue of limitations.
Is the executor of a will responsible for any unpaid bills that the estate cannot pay?
The estate is responsible for the debts of the decedent. However, the court-appointed executor is responsible for paying the debts according to the schedule set forth in the state probate laws.
If the executor has performed their duties according to the law and there are not enough assets to pay the debts then the estate is deemed to be insolvent and the creditors are out of luck.
If a creditor writes of a debt as a bad debt what happens next?
Even if a creditor writes off a debt, you still owe the money, it only means that they do not think you will pay or they have waited the maximum allowed time under Generally Accepted Accounting Principles.
Depending on the type and size of this creditor they can take three typical options; (1) do nothing; (2) Issue you an IRS Form 1099 making you responsible to pay income tax on the amount they are writing off; (3) sell all their bad debts, typically quarterly, to specialized and aggressive charge-off debt collections agencies and law firms.
Is the surviving spouse responsible for deceased spouse's federal income tax?
I take it that the two of you filed separate returns and kept your funds separate. You are probably not responsible for your deceased spouse's federal income tax. However, your deceased spouse's estate is responsible for his or her federal income tax. That is if there is enough money in the estate to pay the taxes. Otherwise, you may need a good tax lawyer.
Yes, and this is a common misunderstanding of the inter-workings of a bank or credit card company that consumers have. When they "charge-off" an account this does not change anything for the debtor or the amount of money that is owed. This is an accounting practice where an asset or expected revenue is converted into a bad debt, at which point most liquidate them to third-parties at discounted rates, typically after 120 days unpaid.
Once this occurs the new owners now own the debt and your obligation for repayment transfers from the original creditor to this new owner. The discount the new owner paid is not relevant nor does it change your obligation. Lastly, as these new owners are investing on bad debts for repayment, they tend to be more aggressive then the original credit, which can include filing lawsuits for repayment, which they can, since they are the owners of the debt.
Your best bet is to try to work out a settlement, however do not expect them to agree to 1-cent on the dollar, especially if they know your good for more or would make more by getting a judgment and filing for wage garnishments.
How do you know when a judgment is real?
Judgments are issued by the courts, are public record, and if you are a party to such action would receive notice and copies of any court action and filing. If you have avoided process of service or appearance in the lawsuit, it does not protect you from judgment, it actually makes it easy and faster for the plaintiff to win. There are two ways to check the status of any judgments upon you; (1) visit your local clerk of court and ask for a copy of the lawsuit, or (2) get a copy of your credit report, as judgments will appear under the "public notices" section.
