Having debt can be immensely stressful, particularly for those on a strict budget, where repayment feels impossible. Fortunately, the Consumer Credit Protection Act sets limits on what debt collectors can and cannot take. Moreover, each state should have laws on the topic.
Here are some exemptions from debt collectors under many debtor protection laws:
As mentioned above, there are federal and state protection laws in place that hinder seizing too much of someone's wages.
Many of these laws are state specific. Generally, the following guidelines apply:
If someone declares bankruptcy under Chapter 7 of the Federal Bankruptcy Act, a creditor’s right to collect on a court judgment is generally cut off. An exception to this rule is if the creditor obtained the judgment because their property was injured by the defendant's malicious behavior. In this case, the creditor should still have a right to collect judgment despite bankruptcy. The creditor may be required to intervene in the bankruptcy proceeding.
If you are a debtor, contacting an experienced consumer protection attorney is the best way to protect your assets. Ignoring legal documents and court summons will not make the problem go away, yet a lawyer may be able to help you find relief. If you are a creditor, it is essential you are aware of the laws protecting the debtor as well as your right to what is owed to you. Hiring an attorney is the best way to ensure your debt is collected quickly and legally.
Last Modified: 06-17-2018 09:51 PM PDTLaw Library Disclaimer
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