Debt Collection Flashcards
If a creditor repossesses collateral that was purchased for $4,000 or less, what is the result? What are the exceptions?
The debtor is not liable for any remaining debt owed.
(1) Debtor wrongfully damages collateral, or
(2) Debtor refuses proper repossession demand.
When is repayment unenforceable?
(1) Physical harm to the debtor’s person or property is threatened,
(2) Harm to the debtor’s reputation is threatened, or
(3) Excessive interest (exceeding 45%), plus a creditor with a reputation for using or threatening violence.
What federal law governs debt collection?
The Fair Debt Collection Practices Act (“FDCPA”).
To whom does FDCPA not apply?
Creditors themselves.
May a debt collector communicate directly with a debtor knowing the debtor is represented by an attorney?
No, unless the attorney fails to respond to a communication within a reasonable time.
Within what timeframe is a debt collector not allowed to contact a debtor?
9:00 p.m. - 8:00 a.m.
May a debt collector contact a debtor’s place of employment?
No, if he knows the employer prohibits such communication. (One chance to call.)
What are the parameters under which a debt collector may not harass or abuse a debtor?
A debt collector may not:
(1) Use or threaten violence,
(2) Harm or threaten a person’s reputation,
(3) Use profane language,
(4) Publish a list of debtors to refuse to pay,
(5) Call a person with an intent to annoy, harass, or abuse, or
(6) Call a person without meaningfully disclosing their identity.
What are the parameters under which a debt collector ay not use false, deceptive, or misleading statements or actions?
A debt collector may not:
(1) Suggest an affiliation with federal or state government,
(2) False state the amount or status of a debt,
(3) Suggest nonpayment will result in arrest, imprisonment, garnishment, or seizure of property,
(4) Suggest the debtor committed a crime,
(5) Threaten to communicate false credit information, or
(6) Fail to disclose that a communication is from a debt collector.
When must a debt collector terminate communication with the debtor? What are the exceptions?
Upon a written refusal to pay the debt or a written request to end communication.
Exceptions: To advise that further efforts to collect the debt are being terminated or that certain remedies may be invoked.
A debt collector may contact third parties in what scenario and under what parameters?
To locate the debtor, and the debt collector must:
(1) ID himself without indicating he is a debt collector,
(2) State he is seeking location information, and
(3) Not state the person owes a debt.
The debt collector may not contact the person more than once, nor may he send a postcard.
Where is proper venue for legal action arising out of a debt owed?
(1) Where the debtor lives,
(2) Where the debtor signed the contract, or
(3) Where the real property is located (if applicable).
When are garnishment orders available?
Only after the court has issued a judgment against the debtor.
Garnishment of wages not re: the support of a person may not exceed:
The lesser of:
(1) 25% of the debtor’s disposable earnings, or
(2) The amount by which the debtor’s disposable earnings exceed 30x the federal minimum wage.
Garnishment of wages re: support of a person may not exceed:
50% of debtor’s disposable earnings if the debtor is supporting a spouse or dependent child, or
60% of the debtor’s disposable earnings if the debtor is not supporting a spouse or dependent child.
What is the fee an employer may take for garnishing an employee’s paycheck?
The greater of $12 or 3% of the amount to be deducted.
What are the remedies for discharge due to a garnishment order?
(1) Up to 6 weeks of lost wages,
(2) An order requiring the employee’s reinstatement, and
(3) Fees and attorneys’ fees for the legal action.
Attachment before judgment is available only under what circumstances?
If at least one of the defendants:
(1) Is a nonresident of Indiana,
(2) Has left Indiana with intent to defraud,
(3) Is concealed so that a summons cannot be served,
(4) Is removing or about to remove property outside of Indiana, or
(5) Has sold or disposed of property with fraudulent intent (or is about to do so).
What is a proceedings supplemental?
When a defendant remains unwilling or unable to pay the amount due, the plaintiff may bring an action to further involve the court.
Where is a judgment lien on real property automatic?
In the county of the issuing court. Other counties must be notified by delivering a certified copy of the judgment to the clerk of court of the county where the real property is located.
What may be excluded from bankruptcy proceedings?
A debtor’s equity interest in a residence, up to $19,300 in value, and
(1) Other real property or tangible personal property up to $10,250,
(2) Deposit accounts and cash up to $400 in value,
(3) Any property held has a tenant by the entireties,
(4) Health aids,
(5) Interests in retirement plans or public pensions,
(6) Interests in HSAs,
(7) Deposits to tax deductible education savings accounts made at least one year before the bankruptcy filing,
(8) Workers’ comp benefits,
(9) Unemployment compensation,
(10) Rights to tax refunds, and
(11) Veteran disability benefits.
