A debt buyer is a company that buys debts. For instance, if a person owes company A $20, then company B can step into company A’s shoes and buy the right to collect that debt. Most debt buyers exclusively buy delinquent or defaulted debt. For example, 1,000 debts with an average balance of $1,000 on each debt would be equal to one million dollars’ worth of debt that the debt buyer could potentially collect. If the debt buyer were to buy that for five cents on the dollar and collect as close to the full amount as possible, then they could make close to 95 cents on the dollar.
Can A Debt Buyer Sue Me For One Of My Old Debts?
Whether or not a debt buyer can buy an old debt will depend on how old the debt is and when the last payment was made. Most credit card debts, car loans, and even mortgage loans have a time limit that starts running at the time of the most recent payment, and once that time limit has passed, the debt buyer can no longer legally sue. It can become more complicated than this if a debt buyer shows on their books that a small payment was made when it wasn’t actually made. These are referred to as zombie debts, which are debts that are considered dead when suddenly a small payment on a debt buyer’s books will breathe new life into them. In addition to remaining on the lookout for zombie debts, a consumer should understand that they cannot just tell a judge that they think debt is past the statute of limitations; that is an issue that will have to be raised in their written answer.
What Is An Automatic Stay? How Can It Help Me In My Consumer Debt Defense Case?
An automatic stay is something that comes out of bankruptcy and stays everything. Prior to signing a retainer agreement with a client who is being sued, we will evaluate their situation to see whether or not bankruptcy would be a better idea. If it is, then we will refer them to a good bankruptcy attorney. As soon as someone obtains a bankruptcy attorney, that attorney can notify the creditors of the bankruptcy, and the creditors will then be required to stop contacting the debtor. While bankruptcy is a good option for many, consumers who only have a few unsecured debts that are delinquent may be better off working out settlement agreements once they’ve been sued.
For more information on Debt Buyers In The State Of Michigan, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (248) 843-0550 today.