Debtor And Creditor Legal Questions

Absolutely you need her to give you a promissory note and grant you a mortgage lien on the property.  The amount you are loaning her should not be considered a gift because it is in excess of the $19000 annual gift tax excusion.  So, if you do not set it up as a loan you could be hit with gift tax later on.  What you could do, however, is structure it as a loan upfront but forgive a little every year which as long as the amount forgiven is less than the gif tax threshold you willnot be considered to be giving a taxable gift.... Read Answer

First, understand that "duress" does not mean simply that you did not want to sign the note or that you felt personally compelled because they gave you an ultimatum.  Second, unless you fraudulently incurred the debt, the creditor can not "charge" you with anything.  All they can do is sue you for the debt.... Read Answer

The vehicle was sold to her - not you - so you have no legal rights associated with the vehicle. You can't get out of the loan and you can't get the vehicle impounded. You can certainly sue your ex for all of the amounts you paid for the vehicle in loan payments. But what are the odds she will be able to pay you anything on the judgment? You can refuse to make anymore payments and the vehicle will be repossessed and auctioned off. There will almost certainly be less recovered than is owed on the note after the repo and auction expenses, which you will be obliged to pay. This will deprive your ex of the vehicle but negatively impact your credit. It may be possible to obtain the right to possession by suing in equity and showing that you have made all of the payments to establish yourself as the equitable owner of the vehicle. Just know that you will then have to take steps to get the vehicle returned which she may not make easy. She may also damage the vehicle before you get it making your victory largely symbolic.... Read Answer

This is one of the many reasons one should never cosign for another person. The lender only agreed to lend money to this person based on your co-signing, so it had another person to hold accountable if and when this person failed to pay on the loan. While I can certainly appreciate your desire to no longer be on the note as a co-signer, there is no way that the lender will release you from that obligation. Put yourself in the lender position - if you had two people that you could hold liable for a debt, one of which was a better credit risk than the other, would you agree to let the better credit risk go?... Read Answer

Here's a practical tip - if you can't pay the full amount you agreed upon, pay what you can every month. When you stop cold, or miss payments, it seems to attract more attention. Regular monthly payments are a big deal, but that might not stop a lien or a garnishment or a seizure of your bank account. Your options are to enter into a new installment agreement with the State, or to file a Chapter 7 bankruptcy if the taxes are dischargeable, or to file a Chapter 11 or Chapter 13 bankruptcy reorganization plan to provide for payment arrangements. The Louisiana Department of Revenue is generally more difficult to deal with than the IRS. The collectors take their jobs seriously and they have a lot of administrative rules that they have to follow to prevent showing favoritism to any particular taxpayer. Although the LADR collectors are tough, some of them are sympathetic to taxpayers who are down on their luck because of medical issues, involuntary unemployment, or family problems. One thing is certain - you will do better contacting them first before they lien or garnish your property. If you can't get anywhere with the collector assigned to your case, talk to an experienced Louisiana bankruptcy attorney.  ... Read Answer

Sounds like there's something more going on than what you are aware of. What has the debt consolidation loan company told you? Do they agree that your Discover card was included?  Did they make any payments toward that debt? If you have received papers from the court, you are going to have a very limited time to respond. You may have as little as 10 days from the date you were served with papers to file responsive pleadings in court.  One thing is certain: if you don't do anything with the court proceeding, Discover will be able to get a money judgment against you by default and you don't want that to happen.    ... Read Answer

Hello, You'll likely want to consult with a consumer protection attorney as there is likely a lot of information to review. I would first gather all of the information showing that you've made every payment on time to them and also gather any information you may have on where and how the mortgage company has been applying the payments incorrectly. This information could come from mortgage statements to an extent. Eventually, you'll likely need to initiate a formal Notice of Error to the mortgage company detailing their mistakes but you'll want to make sure you have all the required paperwork when doing so. You'll also want to dispute the negative credit reporting directly with the credit reporting agencies that are reporting the false and negative information.  The first step though is to have paperwork lined up showing that every payment was made on time and have the written proof showing the mortgage company is in the wrong. Most consumer protection attorneys will offer free consultations (at least we do). I hope this insight helps!... Read Answer

When something sounds too good to be true, it usually is. Banks don't usually operate like that. This scheme sounds really, really fishy. Not minnow or goldfish fishy. Great White Shark fishy. Your mother should hire a knowledgeable and experienced lawyer right away. A few hundred bucks now might save her thousands of dollars later.... Read Answer

Anyone can sue anyone at any time for anything.  Similarly, anyone who is sued has the right to defend themselves and, in a debt collection case, the burden is on the Plaintiff to prove its case by preponderance of evidence. You have been sued in the Court of Common Pleas as opposed to Magisterial District Justice, commonly referred to as small claims court.  No hearing is scheduled.  Rather, you must either file a response within 30 days of service, Plaintiff must send you a letter after 20 days affording another 10 days, or suffer a default judgment. I strongly advise you to speak to debt relief counsel ASAP about your options.  I trust this answers your questions but do not hesitate to call or email on a free initial basis.   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read Answer

If you timely paid off a balance which clearly stated it was the total owed, the creditor may not pursue you for additional funds.  One exception is an error in the payoff statement.  The underlying contract governs so that you are obligated to pay all monies actually owed, including interest, late charges, and often attorney’s fees.  If the creditor erred in the payoff, the same is capable of correction. There is no action for you to take.  However, if the creditor still reports a balance on your credit report, you can dispute the same with all 3 credit reporting bureaus.  Also, if they sue to collect what they claim is still due and owing, you can defend yourself and the burden is on the creditor to prove the balance.  Finally, you can consider taking action against the creditor, but your remedies are few unless you are or were pursued by a debt collector who is merely an agent for the original creditor.  In that event, you should speak to a consumer attorney who pursues creditors and debt collectors who are violate federal or state law. I trust this answers your questions but do not hesitate to call or email on a free initial basis.    Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read Answer

When you have difficulty paying your debt, you have 3 options, negotiate, ignore, or bankruptcy.  Ignoring debt will result in collection, which will likely include one or more lawsuits.   A lawsuit will likely result in a judgment and can also result in loss of bank accounts and personal property. If you simply want to negotiate with the creditors, as opposed to the other 2 options, my best advice is to speak with a US Trustee approved credit counseling agency who will determine a budget and negotiate on your behalf.  For consumers, there are two types of bankruptcies, Chapter 7 and 13.  The former is generally for those who simply require the elimination of unsecured debt such as credit cards.  The latter is generally for those who have fallen behind in secured debt such as a mortgage.  Chapter 13 allows you to repay any arrears over five years as well as pay unsecured debt in part or in full if you have too much income for Chapter 7 . A bankruptcy protects just about all consumer assets.  An exemption is a dollar amount assigned to an asset so that, if a Trustee ( the person charged with liquidating assets) were to attempt to sell such an asset, he would have to pay the exemption amount to you.  Since the stated exemptions usually cover the value of the assets, most consumer cases are determined to be "no asset".  Thus, you simply obtain a discharge of your debt. You should speak with experienced bankruptcy counsel to discuss all the ramifications and opions.  I trust this has been helpful, but feel free to call or e-mail on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read Answer

Based on the information that you have provided, it is my opinion 99.99% that this person is lying to you and trying to scam you. I would end all contact with this person by blocking their emails and all other means of communication. If they do contact you I would inform them that you will contact law enforcement if they contact you again. It is my opinion that you have nothing to worry about. Enjoy your weekend.... Read Answer

Debtors prison was eliminated more than 150 years ago such that you cannot be imprisoned for failure to pay a civil debt.  However, creditors still have rights.  They can call you, write to you, and sue you.  The first 2 options cannot effect you at all, but the third should not be ignored.  If you are sued and don’t defend, a default judgment will be entered which can then be collected against your assets such as a bank account. If you have debts in excess of $10,000.00, I suggest considering a bankruptcy as a possible permanent solution.  Not everyone qualifies, but an experienced debt relief attorney can advise you regarding your options. I trust this answers your question but do not hesitate to call or email me on a free initial basis.   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read Answer