Collection of Unsecured Debts

Question 1

What is extra-judical collection (pre-lawsuit)

Answer 1

Usual to seek voluntary collection before judicial process.

Techniques include: demand letters, phone calls, and hiring a collection agency. Or withholding something of value (like a diploma), until debt is paid.

The creditor can only act reasonably and not deceptively, especially if the debtor is a consumer. If the creditor behaves unreasonably or deceptively, they could be liable for damages.

Question 2

Judicial Collection

Answer 2

If extra-judical efforts fail, a creditor might file a lawsuit.

The point is to get a judgement, then to get a judicial lien on the debtors assets.

Question 3

How long is judgement in VA valid for?

Answer 3

In VA, judgements obtained in state and federal courts are valid for 20 years, and may be extended by motion for an additional 20 years.

Judgements obtained in GDC are valid for 10 years, if docketed in CC valid for 20 years.

Question 4

What is an attachment lien?

Answer 4

A provisional lien that arises before a judgement.

Basically, the sheriff seizes the property, (if tangible) and holds it until the end of the lawsuit.

These help:
-Est. the creditors priority and
- prevent the debtor from disposing of it’s property before the creditor can get a judgement.

Question 5

Procedure for issuing an attachment lien

Answer 5

The court reviews the petition ex-parte, the petetion is the only evidence the judge should consider.

If reasonable grounds for attchment exist, the court issues a writ of attachment.

IF seeking recovery of specific PP:
-attachment may only be for as much property as is needed to satisfy the debt or damages awarded, OR
- attachment may be against the D’s estate for value of specific property, debt or damages.

Question 6

Grounds for issuance of attachment, for an action against the defendant, sufficient grounds exist if the D:

Answer 6

1. is a foriegn corp or non resident of virginia (unless the debt is not yet due and payable and no other grounds support attchment).
2. is removing his domicle from VA
3. Is removing the specific property sued from VA
4. is converting his property into money, securities, or evidences of debt with the intent to hinder, delay, or drafud his creditors.
5. Has assingned or disposed of his estate, with the intent to hinder, delay, or drefraud his creditors,

OR

6. Has adsoncded with the prop. or is a fugitive from justice.

Question 7

Grounds for issuance of attachment, for an action concerning the property, sufficient grounds exist if:

Answer 7

1. the prop will be sold, removed, secreted, or otherwise disposed of.
2. will be destroyed or materially damaged, or injured,
   OR
3. in an action for rent, will be destroyed or concealed.