Author Topic: debt question  (Read 1373 times)

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Offline Renaissance

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Re: debt question
« Reply #15 on: September 07, 2017, 12:20:28 PM »
I agree with Reporter that your friend should consult with an attorney in his state for legal advice.  Each state law is different, however, consumer debts are mainly regulated by the federal government under the Fair Debt Collection Practices Act.  Both state and federal law will intertwine in a debt collection matter.  Under state law, certain debts cannot be collected after a certain period of time.  This time period is called a statute of limitations.  In MN it is 6 years.  6 years is the statute of limitation for a breach of contract.  For other states, the time period may be different.  Once there is a breach, the creditor has up to 6 years to file a court action or forever lose that claim.  Based on what you have written, it sounds like he was served within the statute of limitations for his state.  In civil matters, such as a debt collection matter (or "breach of contract" is the correct legal term), you generally cannot get jail time if you lose the case or if you cannot pay.  You CAN be sent to jail for contempt of court.  This is probably what your friend is facing.  Once the creditor obtains a judgment, they will send "discovery requests" to your friend to answer.  These are questionnaires regarding his employment and assets which your friend has to answer truthfully.  If he does not respond to the discovery requests, the creditor may ask the court to find your friend in contempt.  IF this is the case, he may spend time in jail.  If there is already a judgment, he may 1.) pay off the entire debt, 2) negotiate a settlement with the creditor for a lessor amount or give him time to pay; or 3) put all his debts together and file for bankruptcy.  If he has little or no income and no assets then he is "judgement proof."  There is nothing the creditor can do.  They have the right to renew the court judgment and also have the judgment on his credit record. 

So in short, consult with an attorney in his state. O0

« Last Edit: September 07, 2017, 01:37:01 PM by Renaissance »

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