Debt Collection & The Illegal Practice of Sewer Service When a debt collection agency files a lawsuit against you for an outstanding debt, it must serve you with the papers so that you are aware of the action. However, one New York agency allegedly didn’t think that was necessary and provided debtors with’sewer service’ instead. Now it faces a class action lawsuit for those debt collection practices. → Read More
Fair Debt Collection Practices Act Violations: Do You Have a Case? The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against the illegal practices of creditors. Various states have enacted their own versions of the FDCPA that may provide consumers with even greater protection. When it comes to collection letters, many of them contain misleading and false information, if you receive a debt collection letter and feel it contains misleading language, you may be able to sue. → Read More
What is Wage Garnishment? A wage garnishment is a legal process whereby the court orders your employer to withhold a portion of your earnings each pay period to pay off a debt. The law sets forth the maximum amounts that can be garnished, designate specific procedures concerning child support and alimony payments, and stipulate that it is illegal to fire an employee who requires wage garnishment. → Read More
How is a judgment lien created? The actual mechanics of creation of a judgment lien vary state-to-state but tend to be generally similar. The judgment creditor first perfects the judgment and then tries to get the judgment debtor to ‘voluntarily’ satisfy the judgment. If the judgment debtor fails to voluntarily satisfy the judgment, a judgment lien can be created against the judgment debtor’s property. → Read More
What is satisfaction of judgment? When one individual or company, or creditor, sues for payment of a debt and the court rules in their favor, it issues a judgment. The judgment requires the debtor to pay the amount determined by the court. → Read More
Will I have to pay a debt that I owe to a company that has filed for bankruptcy? If you owe money to a bankrupt company, whether for a debt, line of credit, purchase, or any other past financial transaction, you are obligated to pay that debt even if the company in question files for bankruptcy. The fact that the company is bankrupt does not eliminate your debt, because the company’s financial status does not alter the status of your transaction. → Read More
Types of Consumer Credit What is credit? There are three main types of consumer credit. Noninstallment credit, Installment Closed-End Credit, is the simplest form of credit and is usually for a very short term, such as 30 days. The buyer makes one payment at or before the end of the credit period. This kind of credit enables consumers to take possession of property immediately and pay for it within a short time. Many department stores offer noninstallment credit to their regular customers; this enables the store to make sales and get the money in the near future, thus generating better cash flow for the business than might otherwise occur. → Read More
What is the Truth in Lending Act? The Truth in Lending Act (TILA), passed in 1968, is a federal law that regulates the credit market and sets minimum standards for the information that a creditor must provide in an installment credit contract. The Truth in Lending Act applies when businesses or individuals extend credit to consumers, when the credit is payable by written agreement in more than four installments, and when credit is subject to a finance charge. → Read More
What are possible penalties for bankruptcy fraud? Committing bankruptcy fraud is a serious offense. In any situation where fraud is proven, the person in question will have his or her case thrown out of court without having his debts discharged. He will likely also face penalties involving fines at the very least. Because bankruptcy fraud is a federal offense, the penalties can climb quickly and get steep: in some cases you can be criminally prosecuted for it. → Read More
How do I execute and levy against property owned by a judgment debtor? Under execution and levy, property owned by the judgment debtor is taken and either delivered to the judgment creditor or sold with the proceeds of the sale delivered to the judgment creditor. Since a judgment creditor should never personally take property away from a judgment debtor except with permission, the judgment creditor must take certain steps and get the assistance of law enforcement personnel to perform the levy. → Read More
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