How judge would make a decision on her monthly payments to creditor? Whats the law for this kinda things?
2007-05-16 17:56:02 · 5 answers · asked by leopoldo 2 in Business & Finance ➔ Credit
She owes about $500 but collections say they would take her to the court. So, what would be monthly payment on this kinda debt for a person with no income?
2007-05-16 18:14:17 · update #1
If she has no income what can they do? Nothing. If she has been served with court papers, tell her to go in and talk to the magistrate judge before her thirty days are up and tell them her situation.I would say for her to set up a monthly payment of $20-25 since it is only a $500 debt. If she don't do anything they will just issue a judgment in favor of the creditor and the only thing that they(creditor) can do is sit back and wait to see if she gets a job and then garnish her wages.
2007-05-16 18:45:21 · answer #1 · answered by prcsdime 5 · 0⤊ 0⤋
The court can find in the favor of the creditor and give the creditor a judgment against her .. the creditor will then have to try and collect from her. if she has no income the creditor could take whatever assets she has to satisfy the debt..cars, jewelry, etc. The court will force her to reveal the assets she has. DON'T attempt to hide those assets either..that can get her put in jail. The only way out if the debt is so large that she can never pay it back is to file bankruptcy.
2007-05-16 18:07:22 · answer #2 · answered by MeInUSA 5 · 0⤊ 2⤋
In a case with no income, they would more than likely put a judgment on her with an IRS lien. Then, when she files her taxes (which if she's smart she will, if only for earned income credit) any money she owes to them will be sent to them before the remainder is sent to her.
Meanwhile, review the Fair Debt Collection Practices Act at http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#807. 807 sounds like the section you need to look at particularly. If they have threatened her with court, you need to be aware of her rights and obligations. Read 805 also, as it is illegal for the collector to tell YOU what her debt is.
2007-05-16 19:06:35 · answer #3 · answered by Anonymous · 0⤊ 1⤋
I am not sure that the court could order her to pay the debt. Her creditors could force her to file for bankruptcy.
2007-05-16 18:03:50 · answer #4 · answered by msi_cord 7 · 1⤊ 0⤋
pay with what?
2007-05-16 18:02:41 · answer #5 · answered by venus11224 6 · 0⤊ 0⤋