Debtor And Creditor Legal Questions

It sounds sketchy.  You might want to consider getting your own loan.  And never co-sign for someone else on a loan unless you dont care about your credit score and the liability that comes with defaulting on a loan.  Having seen your scenario many times before, I can already tell you that when this goes wrong, its because the actual debtor doesn't make the payments (despite your paying him), he defaults on the loan, the car gets repoed, and you have no recourse.  Don't do it.... Read More

Generally, it is never too late to settle a case, even at the day of hearing.  If you were sued in Magisterial District Justice Court, the first hearing listed is usually simply a default date.  If you fail to notify of your intent to defend, the Plaintiff will not be required to appear and a default judgment will be entered.  If you notify of your intent to defend, an actual hearing date will be assigned.  You can try to settle up until the actual hearing begins and even after that as the courts generally take days or even weeks to render a decision.   If you were sued in Common Pleas Court, the complaint contains a Notice to Defend advising that you have 20 days from the date of service to file a response.  Even after that, the Plaintiff must provide a 10 day notice affording another 10 days before a judgment may be entered. I trust this answers your questions, and, if you live in the Delaware Valley, feel free to call or email on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Generally, there are 3 methods to protect assets from execution.  First, defend any lawsuit filed by the creditor.  If that case is successful, assets will be protected.  At the very least, arrangements can be made to avoid loss of assets.  Second, transfer assets from your name.   However, doing so could result in an action by the creditor to reverse the transfer based upon the Fraudulent Transfer Act.  Third, add a spouse to bank accounts and other titled assets which may ultimately protect that asset under the marital exemption known as tenants by the entireties. I trust this answers your questions, and, if you live in the Delaware Valley, feel free to call or email me on a free initial basis.    Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

While the general rule is that only those who actually incur debts under a contractual theory are liable, PA has a statute creating liability for family members regarding necessaries.  Although rarely invoked, medical providers are the most common such creditors. I trust this answers your questions, and, if you live in the Delaware Valley, do not hesitate to call or email me on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com  ... Read More

Yes.  Generally speaking it may take that long to deal with all of the insurances.  I would ask for an itemized billing showing the insurance payments.  It is a legitimate debt and if not paid they can start collection efforts.  If it is a  state-owned facility they can also intercept your state tax refunds.   Call them and make a payment plan if you cannot afford to pay the entire amount in one payment.   Depending on your financial ability to pay and if you are significantly impacted by other debts you may be able to ask them to forgive it.   If you are thinking of filing bankruptcy for other reasons, this debt could be included; if that is the case, seek competent bankruptcy counsel to discuss your options.  ... Read More

If your husband is being sued, the first thing he should do is speak to an attorney about defending the case, negotiating, or possible bankruptcy.  You are not liable for his debt, except in rare circumstances.  Also, in a divorce, debts may be considered marital for purposes of distributing assets. If your husband does not defend, or does and loses without filing a bankruptcy, all you need do is assure that you don’t share a bank account.  While such accounts are ultimately exempt from the creditors of just one spouse, the account can be frozen pending a determination that it is indeed exempt. I trust this answers your question, and if you live in the Delaware Valley, feel free to call or email me on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Generally, there is a 4 year statute of limitations on contract cases.  There is an exception for certain contracts signed under seal that is 20 years.  I always advise getting served as the only way to defend against a claim is to know what it is. I trust this answers your question, and if you are in the Delaware Valley, do not hesitate to call or email on a free initial basis.        Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Generally, contracts which require notification of compliance do not give rise to claims of default.  Rather, if the creditor asks, you will simply provide proof.  Having said that, if the creditor does declare a default, your defense would be that the default was immaterial such that a true breach did not occur. I trust this answers your question, and if you are in the Delaware Valley, do not hesitate to call or email on a free initial basis.    Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

From your email I gether that your former roommate loaned you money, althoygh you don't say wo explicitly.  If so, you are obligated to repay it unless it was a gift, or unless you received it (or someione received it on your behalf, like a creditor of yours) as part of a contract in which you provided something of value in exchange for the money.  The lack of a signed document doesn't change anything, except that it may make it harder for your former roommate to prove his/her case.  You would still be liable to repay the money, even if you can't work, unless the debt is discharged in bankruptcy.... Read More

There is no right to cure a car loan default in PA.  However, before the car may be sold, you will have the option of redemption which is paying the entire balance, plus costs, to recover the vehicle. If you file a Chapter 13 bankruptcy, that will prevent the creditor from selling pending the case in which you will be allowed to repay the entire balance over 5 years. I hope this answers your questions, but feel free to call or email me on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Depending on the exact debt, you may have a cause of action under the Fair Debt Collections Practices Act. FDCPA bans certain unlawful and unethical collections practices. On the face of the facts as presented, it is not clear the debt is owed and they are still trying to collect. It also appears they may have made false statements to do so.  A creditor can sue but if the debt is old or not owed or creditor breaks the law in the process of collecting, the creditor can be liable for damages and attorney fees.  Our firm has a great deal of FDCPA experience and we would be happy to give you free consultation.... Read More

You have the right to redeem the collateral by paying the creditor the value  of the collateral or the balance you owe, whichever is less, in a single lump sum payment.  If you surrender the collateral they have no right to collect any amount from you since your personal liability was discharged.... Read More

Usually, someone in your situation cannot "protect" assets, since anything you do with the money in the bank or certain other assets can be reversed by a creditor as a fraudulent or preferential transfer.  It may be that your best option is to file a bankruptcy to get rid of the debts and get a fresh start.  You should speak with an attorney in your geographic area about this.... Read More

If you were married at the time the house was bought, you may have Dower Rights in the property. If he had the home prior to the marriage, the home should be safe from your individual creditors. Michigan permits marital estates in land which are usually (with some exceptions) judgment proof except to jointly created debts (like mortgages).... Read More

I don't know where this judgment is from, but in New York judgments are enforceable for 20 years after entry.  While you are not required to answer interrogatories relating to a judgment which is no longer enforceable, it is your responsibility to find out if it is enforceable.  If you don't want to engage your own attorney, the clerk of the court may be able to help you ascertain how long the judgment is good, and if it has been revived.  It  is likely that this matter was turned over to a collection agency, which is why the attorney has changed.  As for the amount, I imigine that it now includes the interest which has been running for 14 years. ... Read More

You cannot be put in jail just because you can't pay your debts, although your assets can be sold off and used to pay those debts.  However, if there was any fraud in connection with accumulating that debt, it is possible that you could go to jail for the fraud, depending on how serious it was, your prior record, etc.... Read More