Can Debt Collection Agencies Sue For A Debt-yuanjiao

Legal It is easy to believe that collection agencies will not sue for a small amount of money. Can debt collection agencies sue for a debt? The answer is yes, as long as they are within the statue of limitations. If a debtor owes less than $1,500, the debt collector is faced with an economical question. Will it cost more to pursue the debtor in court than it is worth to them if they collect? It depends entirely on the debt collectors .mission arrangement. Debt collectors are often debt buyers, and if they own the debt and probably bought it for pennies on the dollar, they can afford to sue for much less than $1,500. The bottom line is they have all the tools they need to get that money back; to collect the debt. And they will. The cost of serving the debtor with a summons and taking them to court is still less than what theyll get from the settlement and still make a little profit. They can garnish wages, go after other assets, and get their money. In addition they may be able to get the debtor to pay the attorney fees, court costs, penalties and interest on the original debt. Unfortunately many people believe that by ignoring them, they will f.et that the debt exists. There is a legal principle called the statute of limitations which requires legal action be taken within a certain period of time or the grieving party can no longer pursue the claim through the courts. Statutes of limitations vary from state to state. In California, breach of contract has a 4 year statute of limitations, which most debt falls under. In California, once a judgment is obtained against anyone, it is good for enforcement for ten years. A judgment can be renewed twice. That means a creditor can collect on a judgment in California, for up to 30 years. Interest accrues at 10% per annum, which is set by law. Therefore, a judgment can escalate to a huge amount over that period of time. One might not hear from the debt collectors for years, and suddenly one day they contact the debtor with a judgment that has been renewed, and which bears astronomical interest on top of the original debt. The attorneys of Norman Taylor & Associates have been consumer advocates for over 22 years, helping over 6,000 consumers. When dealing with an abusive debt collector, the best step is to contact an attorney who is qualified and experienced in consumer law. Unless these relentless and abusive debt collection agencies are stopped by an attorney that knows your rights, they will continue to use any means necessary to collect. The Law Offices of Norman Taylor & Associates can be reached at (800) 764-7182. Its important to keep in mind that the amount of the debt is not necessarily what determines if they will file suit. Remember, they are in the business of debt collection. With the persistent tactics that collectors use, it is much easier to ignore them. However, ignoring them will not mean they will go away. Contact a consumer advocate with the knowledge and expertise to help. About Norman Taylor & Associates – Consumer Advocates Norman F. Taylor and Associates have been assisting consumers since 1987. At Norman Taylor & Associates, the goal is to provide clients with the highest quality of legal representation. The firm and its associates are experts in both the debt collection laws the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). They can provide you the help you need to end debt collection harassment and bring you peace of mind. They represent consumers all over the state of California. With a twenty two year history of successful cases, Norman Taylor & Associates has established their reputation as a firm of consumer advocates that get the job done. About the Author: 相关的主题文章: