Debt Collection

In most cases the debts of the deceased, including credit cards, are the responsibility of the estate. The estate, or its beneficiary should reimburse any valid debtors before giving any of the assets away. Consult a probate attorney in your jurisdiction for help.

Prior to the Credit Card Accountability Responsibility and Disclosure Act of 2009 which came into effect on February 22, 2010, yes the banks could over draft your account to pay a debt card purchase and then charge you an NSF fee, or several depending on how many charges posted that night.

The new laws now require customers to "signup" or "opt-in" for that form of "over draft protection" otherwise if you do not have the funds you'll get the decline at the point of sale, but not the surprise fees on your bank statements.

iowa, DC, Georgia, SC, CT

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.

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.

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.

Yes, any debt can eventually result in wage garnishments, however it requires a court order that can only occur in a post-judgment lawsuit.

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.

If you have a garishee against your salary can the creditor still charge interest.

Thanks

Theo

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.

reparations

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.

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.

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).

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.

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.

yupp thats true lil jimmy

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.

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.

Yes, and regardless of your State, marital status, or any homestead exceptions. However, most credtiors can only put a judgment against the title of real property which are junior to a lien position. Exception would be any loans collateralize by the property and any trade service preformed on the property. However, at the end of the both liens and judgments get paid at closing on the sale or transfer of the property.

To stop the individual from disposing of his or her assets by transferring the title to property to someone else or removing funds from bank accounts and things of that nature.

Such action when it relates to governmental agency is generally done due to federal or state tax arrearages or possible the state's child support enforcement division for support arrearages.

Most civil courts do not recognize stipulation of judgments or waver of defenses involving consumer debts. Both would still require the plaintiff to file suit and you would be able to challenge the stipulation. The best defense being that you had been pressured or forced into signing the document, however the best answer would be to retain a licensed attorney.