Some people who owe money to others do anything they can to avoid paying what they owe. For example, some people quit their jobs. They know that creditors can take them to court to garnish their wages, so they look for a way to earn income that is safeguarded from a risk of collections. In some cases, they may even place themselves in a position where they...
Some people take on debt intentionally by applying for a personal loan or credit card. Others end up with unintentional debt due to unexpected incidents, like a medical emergency. The average person who owes a substantial amount of money to other individuals or a business does their best to make good on their obligations regardless of the origins of their...
Businesses owed money by an individual may need to spend years collecting on that debt. Hospitals might enter into payment arrangements with someone on a fixed income, for example, that will require many years of payments to complete. Most organizations that engage in collection activity or offer payment plans recognize that receiving payments every...
After working hard and obtaining a justified court judgment, the best-case scenario would involve a large, single payment made by the debtor. However, such easy and voluntary outcomes are not particularly common. Someone who has made concerted efforts to avoid financial responsibility for a debt may not have the liquid capital or current income necessary...
Most people who borrow money or sign financial agreements will eventually make good on their obligations. They will make monthly payments until they have fully covered the balance owed and will do their best to keep their accounts in good standing. However, there are always a few people willing to break the rules and take advantage of a system even if it...
When one business or individual owes money to another party, they may fail to follow through on their obligations for a variety of reasons. Sometimes, a debtor falls behind because of a budgetary shortfall. Other times, they may have engaged in fraud by entering into an agreement that they had no intention of honoring. Whether due to extenuating...
There are numerous laws restricting the activity of debt collection professionals. In general, both professional collection specialists and those pursuing internal collections for a business must carefully comply with federal and state rules about fair debt collection practices. Many of those rules aim to curtail abuses, like harassment, that can cause a...
Creditors in California that are owed money by individuals who seem eager to avoid their responsibilities have options. While both state and federal law regulate collection efforts in an attempt to prevent abuses, the laws intended to protect consumers often put businesses owed money by individuals at a legal disadvantage. However, these organizations have...
Most individuals who take on personal debt are responsible for their financial obligations. They make timely payments and communicate if something occurs that will result in a late or missed payment so that creditors don't feel the need to engage in immediate collection activity. Unfortunately, there are also a few people who attempt to engage in...
The legal system is designed so that different courts have different jurisdictions. Generally speaking, those who wish to take legal action against a debtor must file papers in the jurisdiction where the debtor owns assets. For example, they may reside in New Mexico, but most of the debtor's assets could be investments located in California. So, suppose...