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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
What is Alabama law on debt collection and exempt property?
Homestead: Real property up to $5,000; husband and wife $10,000
Pension and Retirement Benefits:
Insurance: up to $250 month
Personal Property: All necessary household goods
Tools of Trade:
Wages: 75%
Miscellaneous: Business partnership property
Public Benefits:
Wild Card: Any personal property up to $3,000, except life insurance
Real estate example:
Value $100,000
Mortgage: $80,000
Equity $20,000
up to $5,000 of equity exempt per spouse.
Alabama Law> Alabama Code> Title 6 - CIVIL PRACTICE.> Chapter 10 - EXEMPTIONS.> Section 6-10-2 - Homestead exemption - Amount; area.
The homestead of every resident of this state, with the improvements and appurtenances, not exceeding in value $5,000 and in area 160 acres, shall be, to the extent of any interest he or she may have therein, whether a fee or less estate or whether held in common or in severalty, exempt from levy and sale under execution or other process for the collection of debts during his or her life and occupancy and, if he or she leaves surviving him or her a spouse and a minor child, or children, or either, during the life of the surviving spouse and minority of the child, or children, but the area of the homestead shall not be enlarged by reason of any encumbrance thereon or of the character of the estate or interest owned therein by him or her. When a husband and wife jointly own a homestead each is entitled to claim separately the exemption provided herein, to the same extent and value as an unmarried individual. For purposes of this section and Sections 6-10-38 and 6-10-40, a mobile home or similar dwelling if the principal place of residence of the individual claiming the exemption shall be deemed to be a homestead.
Also
A statute of limitations sets forth the maximum period of time, after the debtor becomes delinquent, that legal proceedings (law suits) can be initiated. After the times shown below, a court will throw out any lawsuit.
How long can a debt be collected after the event by a debt collection agency in the UK?
Until it has been paid. Even if you are declared bankrupt, it is still possible for certain creditors to be able to persue the debt.
The only way to get out of debt is to pay what you owe. If you are really struggling to pay, the best thing to do is talk to your creditors and make an offer of payment. Even if this is not the amount the creditor requires, they would prefer something rather than nothing, although this is up to the individual creditor.
Additional:
Not true I'm afraid. Any research done on Google or elsewhere will refute that. Your response is a cynical attempt to confuse the public into believing they can still be held liable after 6 years has passed - much like how the debt collection agencies operate not to mention harassment and threats of legal actions.
More Additional:
Although this may not apply to the UK, the information should be considered. There are negative legal ramifications to paying a very old debt. You may also end up repaying a debt because delinquent accounts get resold to many collection agencies.
Extra Additional;
Again ignore the above post. I don't know which people are being allowed to freely come on here and give out bogus advice. The top and bottom line is, so called debt collection agencies operate in a very grey area of the law and practise underhand and borderline legal methods to 'harass' people into repaying old debts that they themselves have taken a gamble on carte blanche. Shame on them.
What if you admit to owing a debt to a scavenger debt collector?
If you admit to owing a debt to a scavenger debt collector, it can potentially strengthen their position to pursue collection actions against you. This acknowledgment may lead to a quicker resolution, such as negotiating a payment plan or settlement. However, it’s important to be cautious, as this admission may also restart the statute of limitations on the debt, giving the collector more time to take legal action. Always consider seeking legal advice before communicating with debt collectors.
Where do you look to find your repossessed car?
As licensed repo man I can tell you we must notify the local P.D. within 1 hour that the car was picked up as a repo, where it will be stored, and what the name of lender is. To find it call lender or call local P.D. and report it stolen at which time P.D. will tell you its a repo and where it is.
How long do you have to wait to stop payment on a check that has not been cashed?
you can place a stop payment on a check right after you write the check if you want to pay the fee
What is the value of a 1900 walking liberty head coin?
Please check your coin again and post a new question with its denomination.
To clear things up There are Liberty Head designs and Walking Liberty designs, but there couldn't be a coin with a "walking liberty head" because heads can't walk, LOL! And in any case, the Walking Liberty design didn't appear until 1916, on half dollars.
How long do you have to move out on a foreclosure?
That is usually determined by the laws of the state in which the residential property is located. In some instances the mortgage holder will refer to the terms of the original contract, but the homeowner can, ask assistance fromt he court if the alloted times greatly differ.
Yes, a voluntary foreclosure (deed in lieu of such) is a foreclosure just as a voluntary repossession of a vehicle is a repossession. All the same penalties/fees, recovery of debt laws apply and the information entered on the debtor's credit report will be as a foreclosure regardless of the circumstances involved.
Can a bank freeze your personal account for a business reason?
Yes, it's possible, especially when you owe banks alot of money, or are charged with graft or corruption.
Alyssum flowers symbolize beauty. Alyssum is a perennial plant with yellow, white, pink or purple flowers.
Can you get your money back if you are falsely arrested?
No and yes. The city will not offer you your money back, however, you can sue the officer who mistakenly arrested you in small claims or civil court. The precedent-setting case is happening right now in San Francisco (11/2008) where judges threw out the claim against the city but have allowed the civil suit to proceed against the two officers who made the arrest.
Who pays remaining principal on foreclosure?
Remaining principal (and interest on remaining principal unpaid) is the responsibility of the borrower, of course. The lender whose foreclosure sale did not net the full outstanding amount can place a lien on any other property of the borrower and sue to liquidate those possessions or receivables to satisfy the debt.
How do you get a list of foreclosures?
Search for a directory of free foreclosure listing sites There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure.
There are many companies/websites that offer access to foreclosure listings. The majority of these places will offer trial periods for you to take advantage of. Just pay close attention to the terms of service.
In addition, are you looking for listings because you are interested in purchasing foreclosure properties? Or are you just looking to see what's going on in your area?
If you are looking to purchase, please note that there are other properties available for which you can get a deeper discount than a foreclosure. Pre foreclosure properties (aka motivated sellers) need to sell and sell quickly, often times giving you the upper hand on the price you pay.
Also, if you already have a trusted realtor agent working with, perhaps you can both work together in obtaining a list of properties under foreclosure which your agent can ask from banks.
I have some credit cards what will happen if I stop paying them.?
Please do not stop paying your credit cards back. You will destroy your credit score. It is devastating what can happen if you stop paying off your cards. Credit card companies will harass & chase you for up to 7 years if you do not pay. They can make your life hell. This happened to me. I did my best to always pay off everything I owed. I worked 3 jobs at one time to make sure i had enough money to pay my credit cards on time. But when I got divorced, one of the credit cards I shared with my husband did not get paid. He promised to pay it when we were together. And he was paying it. But when he left me, he took off & decided to not pay the card anymore. Even though the charges on the card were his, I was responsible for the bill (because it was my credit card) . The credit card company did not get tired of chasing me for 7 years. They were relentless with sending me bills, & threatening to take me to court if I did not pay them. They did & I had to pay back the $2,900.00 that my ex-husband did not pay back on my credit card. Fortunately, they did not charge me interest on top of that. This situation ruined my credit score for a few years. After the credit card company got their money back, my credit score slowly recovered but it took many years to recover from this.
Will debt consolidation affect my husbands credit score?
Yes, but how it affects it depends ... if he consolidates and keeps on top of his finances from that point forward, it will help. If he consolidates and things get further out of hand it will hurt it if he cannot stay current with his bills.
Credit card companies tend to have the worst affecton your credit - as soon as you miss a payment, they report it and your credit rating goes down.
Answer:
Debt consolidation itself does not dramatically affect your credit score. However, the main issue with debt consolidation is that over 70% of consumers who consolidate their debts grow it back to the same level or higher according to(http://www.bankrate.com).
1. When you consolidate your debts, you are not learning how to manage your money better, you are performing a quick fixes, and quick fixes breakdown as fast as you put them together
2. You must take the necessary steps to learn how to manage your money by putting together a realistic budget
3. Create a simple to execute and even simpler to manage debt elimination plan
4. Make permanent decisions to change your spending patterns to spend cash for your purchases
Hope that helps
Ahmad Davis
http://www.victory-by-design.com
What is the time limit imposed on a collection agency to validate a debt?
If you legally incurred the debt then you are responsible for it until it is paid. A company other than the company to which you were originally indebted may purchase the rights to your debt and you are responsible for paying them. There is no time limit on that debt. A collection agency can legally pursue you until the debt is paid in full. However, there is a time limit on the negative consequences of not paying the debt. In most circumstances that limit is seven years. Seven years from the time you became delinquent with your original creditor. Whether or not your debt was purchased by a collection agency, it should not be reported on your credit report or affect your credit score after seven years. The only time the debt could reappear is if you take an action on it. For example:
In 1997 you applied for and received a store credit card and charged $1000 in merchandise. You did not pay the bill and after their attempts to collect the debt fail, the store sells your debt to a collection agency in 1998. That agency sells your debt to another agency in 2000. In the meantime, you pay all your bills on time and have an otherwise spotless credit history.
In 2004 your $1000 debt will no longer appear on your credit report and your credit score will be higher because the old debt is no longer figured in the calculation. The collection agency is not doing anything illegal by contacting you regarding your debt. But it is no longer affecting your credit rating.
In 2007 you pay $500 toward the debt. Your credit report would reflect you have a $500 debt to the collection agency and your credit score would drop. I hope this answered your question.
Yes. You have to check your state's statute of limitations. The time of the state's SOL for collecting on debts and the federal SOL on credit reports may be two totally different time limits.
just say wrong number as soon as you answer the phone. It will take a week or so for bill collectors to stop calling, but it worked for me. Good luck!!!! Send them a written letter ordering them to Cease and Desist all telephone communications with you. If they don't stop after receiving that, you can sue them under the Fair Debt Collection Practices Act.
A foreclosure deed is the deed required to be filed by the winning bidder at the auction, usually within 30 days, assuming the bidder is able to complete whatever s/he needs to actually pay for the property.
Who pays for my debt after i die?
Your estate pays your debts after you die. If there is not enough, tought luck for the creditors. The only way for the debt to be passed along is if there is some contractual obligation on the part of another person. Such things would be co-signing for a loan, joined owned credit cards, joint owned loans (such as a house), etc.
What do you do if the garnishment is causing financial hardship on you?
1. Pay the debt.
2. File bankruptcy.
3. Ask the court to modify the garnishment order.
4. Negotiate a different amount with the creditor and have it approved by the court.
How can foreclosure on my credit report affect me?
A foreclosure will affect your credit and credit score by decreasing your score, and potentially lowering your overall credit scoring method. If you have a trust deed and the vast majority of home sales in the United States involve a trust deed once the sale takes place the lender simply gets the home back. There is no deficiency owed. However if there is a second mortgage or most likely a second trust deed that lender will normally not bid at the foreclosure sale and you will owe that as an unsecured debt. If you have only one mortgage or trust deed you can simply let the home go back if you are unable to sell the home. If you owe a significant 2nd loan then you may need to consult with a bankrutpcy attorney to resolve that debt
You can't just give them the deed, no. All you can do is offer it to them and ask them to accept it instead of taking the property all the way through the foreclosure process.
The bank doesn't have to accept the deed in lieu of foreclosure, as it's commonly referred to. But they will want to have seen that you have tried to sell the house for a period of time before they will even consider accepting a deed in lieu.
If you have run out of all other options, the bank will be more willing to consider taking the property back. So the fact that you're attempting a short sale is good. Don't wait until the last minute before the sheriff sale to offer the deed in lieu, as well, because it will be more cost-effective at that point for the bank just to carry on with the foreclosure and sell the house.
But, if the short sale doesn't work, contact the bank and offer the deed in lieu of foreclosure. They'll have more paperwork and procedures for you to do, but it will help you get out of foreclosure a little sooner and won't be as bad on your credit.
Lets look at this a bit from the lender's side. It will help to understand some of their issues so you can negotiate a better short sale.
Do understand that negotiating a short sale can be difficult and pretty stressful as the lenders are overwhelmed with loans to sort out. How you submit the information, what you say and how you focus their attention on the defects and other things going on matters a great deal.
One reason a lender may decline to take the property back without a full foreclosure process can be the junior liens. Many times people in default on one loan are also in default on other loans, have back taxes (property or personal), liens from other creditors and similar. If the lender completes the foreclosure then the junior liens will no long remain on the property though the borrower will still owe the money in most cases.
Other things to consider. When a lender accepts the deed in lieu on a property they are missing out on the opportunity to see if the property would sell at auction. A deed in lieu is used to quickly move the process along so that the borrower hands over the property in reasonable condition plus waives their rights of redemption. Redemption can be pretty long in some US states. A short sale is better as the lender settles and there is no need to market the property as an REO like there would be with a deed in lieu.
