Wednesday, November 11, 2015

When Can't Debts Be Collected?


If you have just received a phone call from a debt collector, it doesn't mean that you owe that collector any money. In some cases, the call has been made in error because you have a similar name to another debtor or because you have a phone number that used to belong to a debtor.

However, even if you do owe money to a debt collector, there are times when that debt cannot be collected. For instance, if the debt was discharged through bankruptcy, you have no obligation to pay unless you want to. Another example would be if the debt is older than the state's statute of limitations. While the debt collector may attempt to obtain his or her money, it would not be possible to sue for the balance owed.

In the event that you have filed for bankruptcy, a judge will often give you an automatic stay from creditor contact. If a creditor or debt collector makes contact, you can sue for damages. Your attorney will tell the judge about the illegal contact, and the judge will issue an order to cease contact in addition to a potential financial award on your behalf.

Should you make an agreement for a debt to be forgiven, it can no longer be collected unless you agree to make payments. Sometimes, a debt collector is given inaccurate information about the status of a debt, which may lead to phone calls after the debt has been settled to a creditor's satisfaction.

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