Debt Defense

What Are The Laws That Protect Debtors In New York And The Other Areas You Practice In?

In New York, there is the Debtor Creditor Law and Article 52 of the New York Civil Practice Law and Rules. To take a debtor’s assets, you need a money judgment. That is protection for a judgment debtor. Individual debtors have exempt property. That means property that are not available to creditors. The creditors must execute their remedies in a manner consistent with the law; you could take depositions, but you have to do them properly. Debt defense is making sure that the party who is pursuing you is doing it in compliance with the law.

If you are a judgment debtor, depending upon your business, you may have a secured creditor that already has a lien on all of your assets. The person who gets this judgment sits behind that creditor until they are paid. That is a nice ally to have. That is the nature of secured versus unsecured debt.

In New York, there is a tool that we use a good deal: section 5240 of the Civil Practice Law and Rules, called Protective Orders Against Enforcement. If you are a judgment debtor and you have only one creditor who is there with the judgment, threatening your business, and you want to continue business, you can go to a court. That court may enable you to pay that judgment creditor over time instead of letting that judgment creditor destroy your business. A judgment debtor need not go into bankruptcy. Bankruptcy can be a very expensive process, plus it has its own risks. You be able to get a protective order, so you can protect yourself against a judgment creditor. Then you can protect and pursue your business.

What Happens If You Just Ignore A Debt Collector?

If you ignore a debt collector, the worst that can happen is they are going to argue that you acknowledged the debt. You might wind up with an additional cause of action called an account stated. That means you were sent a bill that you did not contest. So the creditor will have the right to sue. If you have contested the amount that is owed, then they cannot say that there is an account stated. There is very little to be lost by ignoring the debt collector because ultimately, it will go to a lawyer. The lawyers are more rational in dealing with collecting the debt. They are usually paid a contingency fee. They have the money on the line and want to recover as much money as possible, as quickly as possible.

What Can A Debt Defense Attorney Do For Me? Should I Just Use A Debt Consolidation Or Credit Counseling Service First?

Debt defense is someone who is defending you against your creditor. Debt consolidation is agreeing to pay, possibly at a discount. You will find that many of these debt consolidators are frauds. It may take years for you to pay that money off. Many people have nothing saved for retirement or very little for retirement. What are they going to live on? You have a choice between paying someone money that they have already been paid for or getting on with your life. Instead of paying that creditor for the debt, when they already made their money on the interest, if not on the repayment of principal, your purpose is building your future.

How Long Can A Creditor Attempt To Collect A Debt From Me?

In New York State, creditors have 20 years before a debt is deemed to be satisfied. However, that creditor can move to extend it for another 20 years. They can do that continuously. If, however, you have a debtor who goes into bankruptcy and gets the debts discharged, the debt cannot be collected anymore. The creditor can only get what is available through the bankruptcy case. However, if that debt is deemed non-dischargeable because the debtor has committed a fraud on the creditor, that debt can go on forever.

For more information on Debt Defense, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 739-7599 today.