I have some outstanding debt from years ago to a school and some unpaid student loans. I intend to pay them in the near future, but until then what can they ultimately do to collect? Can they reposses something I own?
2007-03-25 18:45:06 · 5 answers · asked by 21over 7 1 in Business & Finance ➔ Credit
They will have to go through a lawyer, then court. After that, they can garnish your wages.
2007-03-25 18:46:49 · answer #1 · answered by RiverGirl 7 · 0⤊ 0⤋
The Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. The first thing a debt collector will do is calling you. If you do not want to receive those calls you can write a letter to the collector and he will have to stop. The debt collector can not tell anyone about your debt, or threaten that you will be arrested. He/she can not come to your house and take your property away.
However, there is always the possibility to get your salary garnished. That means that your creditors have the right to take some of your money to recover the sum that is owed. The good news you are protected by Consumer Credit Protection Act that will not allow the creditors to take all of your money.
of course, this situation will tremendeously affect your credit score but there are always ways to improve it. What were the reasons why you could not pay off your debt? Understanding the core of the problem will help you avoid it in the future. As soon as you get over your default case start working on improving your credit score. You can choose a credit card for bad credit. http://www.requestcredit.com/bad-credit-... This will help you to raise your credit score.
2007-03-25 20:21:37 · answer #2 · answered by Shirrwood 2 · 0⤊ 0⤋
Hi
Debt collectors have the power of persuasion, and some legal power behind them as well. it depends at what stage of recovery your debt is. For example, if the court has already been asked to state an injunction against you, which has probably happened, debt collectors may come and "list" your valuables in exchange for the outstanding debt. They usually give you 7-14 days to pay the full amount, or risk forfeiting all on the "list".
Bear in mind, the debt you owed has probably grown significantly due to legal fees and other costs. Yes, failure to pay against a demand for payment could result in you losing your possessions.
If you are seriously stuck, then go see a consumer support organisation or a citizen's advisary service. They might re-negoriate your debt over a longer period at affordable payments. Whatever you do, do NOT do nothing. That way, you remain guilty before the law and run very high risks of tainting your name and losing stuff.
Good luck
2007-03-25 18:55:33 · answer #3 · answered by justaguy 2 · 1⤊ 0⤋
Debt collectors can report to the credit bureaus and they can sue you.
If your debts are past your state's statute of limitation, debt collectors have no legal way to collect from you (That does not include your student loans, however).
After they get a judgment against you they can garnish your wages (in some states) and put liens on your bank accounts, your home, and other assets.
To check your state's statute of limitation check the link below:
http://creditinfocenter.com/rebuild/statuteLimitations.shtml
2007-03-25 18:52:46 · answer #4 · answered by Ti 7 · 2⤊ 0⤋
They can get a judgement against you in court.
2007-03-25 18:48:04 · answer #5 · answered by BillyTheKid 5 · 0⤊ 0⤋