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Sometimes I get reader questions that don’t have enough information for a big answer. So here are some rapid-fire questions and answers.
Q: Can a collection agency take money out of an account that is not the debtors?
A: If the debtor is not a signer on the account and the account is in the name of someone that was not part of the arrangement with the creditor, then I can’t see how they could take money out of that account or levy the account.
Q: If I’m paying my lawyer $100 a month, can he still turn me into a collection agency?
A: If you are not paying the contractual amount due each month, I can’t see why they could not assign your account to outside collections. The idea that if you pay something, the creditor can’t take action against you is a misperception.
Q: How to write a letter to a collection agency that filed a suit against you on a credit card?
A: Why? If a suit has been filed against you, you will need to respond to the lawsuit in a timely fashion, so you don’t default. It is still possible to settle the debt before the case completion. If you don’t have experience settling these kinds of debts, I would suggest you contact Damon Day for advice.
Q: Can I give back a possession to the debtor if it was included in my bankruptcy Ch 11 without negative effects to my credit?
A: Talk to your bankruptcy attorney first to ensure you are not doing anything that can cause ripple effects.
Q: What happens when you file bankruptcy and leave a loan out and continue to pay it to the debtor?
A: The loan is technically included in the bankruptcy since all obligations are included even if you leave one out. However, you can reaffirm the debt and continue to pay. If the creditor accepted payments from you for a debt you had when you went bankrupt, it could create significant issues for the creditor.
It would help if you discussed this with your bankruptcy attorney before you do anything.
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Q: Can a collection agency take money out of an account that is not the debtors?
A: Potentially, yes. In NY, if a judgment debtor has a joint bank account, the funds in that account may be presumed by the plaintiff to belong to the judgment debtor and may be subject to restraint and or seizure (unless the restraint is contested and/or proof is timely submitted). This may hold true in other states.
Q: If I’m paying my lawyer $100 a month, can he still turn me into a collection agency?
A:Paying your lawyer any amount will not prevent a defaulted debt from escalating to collections. Although the collectors communications may be directed to your lawyer (and not you directly), collection efforts may still proceed. If your goal is to avoid escalation of your debt, you need to resolve it by either paying it off or reaching an amicable settlement and making agreed-upon payments thereto.
Q: How to write a letter to a collection agency that filed a suit against you on a credit card?
A: Did the lawsuit ask you to respond with a letter? If not, the letter will not likely do much to protect you. Lawsuits need to be answered in accordance with the rules of civil procedure in your jurisdiction. The Answer must be filed timely. Consult with an attorney, or contact the court to learn about self-representation.
***Not Legal Advice. Consult with local counsel to understand your rights and remedies.