TeaTime Posted September 17, 2021 Report Share Posted September 17, 2021 trying to help someone who is old, disabled and on a fixed income and not good health. they received a collection letter out of the blue on an old debt from what may be a law firm on behalf of the current debt owner, not the original creditor of the credit card debt. original creditor already had a default judgment but never acted on it and sold the debt to current owner and I have no idea when that was. I don't know if the law firm is now the owner or if they just represent the owner. does a default judgment automatically go over to the new owner? would they have to sue again or just try and collect from a bank levy? should I write a debt verification letter for this person? if so, should they sign the letter as best they can? I'm not sure how to do this stuff. This person previously did not have significant income for years and then when the pandemic happened they received lump sum unemployment benefits and started getting social security and a small pension all around the same time.. I read that these funds are "exempt" but that the bank will only look back 2 months and protect that amount and then the person would have to go to court to prove anything else. The person is homebound and recovering from a serious health issue. There is no way they could ever go to court. I was wondering what the likelihood is that the debt buyer's law firm will pursue this? If I write a debt verification letter should I also include that the person is elderly & disabled and lives on a fixed income that is from government funds, that are exempt funds? will that matter to them or will they pursue anyways? I also don't know what to ask for in the debt verification letter outside of name and address of original creditor, and documentation what the debt is and who owns the debt. I need to get this letter in the mail by tomorrow. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted September 17, 2021 Report Share Posted September 17, 2021 48 minutes ago, TeaTime said: original creditor already had a default judgment but never acted on it and sold the debt to current owner and I have no idea when that was. I don't know if the law firm is now the owner or if they just represent the owner. does a default judgment automatically go over to the new owner? Yes, the title to the judgment would transfer in the sale to the new owner. 48 minutes ago, TeaTime said: would they have to sue again or just try and collect from a bank levy? They do not have to sue again. They can proceed to bank levy and wage garnishment (if there were wages) with the judgment. 49 minutes ago, TeaTime said: should I write a debt verification letter for this person? if so, should they sign the letter as best they can? No signature is required. It can be sent with a typed one. 50 minutes ago, TeaTime said: I read that these funds are "exempt" but that the ank will only look back 2 months and protect that amount and then the person would have to go to court to prove anything else. Only 2 months worth of exempt funds are protected even if they go to court. They need to pay down rent/mortgage and all bills to reduce the amount in the account to no more than 2 months of pension/disability/social security. Is there a trusted person who could hold the funds for them without their name on the account? Another option is to put it on a prepaid debit card which would be nearly impossible to find. 52 minutes ago, TeaTime said: I was wondering what the likelihood is that the debt buyer's law firm will pursue this? NO way to know for certain. 52 minutes ago, TeaTime said: If I write a debt verification letter should I also include that the person is elderly & disabled and lives on a fixed income that is from government funds, that are exempt funds? will that matter to them or will they pursue anyways? I also don't know what to ask for in the debt verification letter outside of name and address of original creditor, and documentation what the debt is and who owns the debt. I would state that the letter is DV requesting the name/address of the current owner of the debt and a copy of any judgment they believe applies to the account in question. I would also state that the letter is also formal notification that the consumer they are reaching out to is elderly, disabled and on a fixed income provided for by 100% exempt funds. Any attempt to violate federal law freezing protected funds will be handed over to a consumer attorney for litigation. DO NOT write it in third person as they can ignore one YOU send on their behalf. It must read as though the consumer sent it. DO send it certified mail return receipt. 3 Quote Link to comment Share on other sites More sharing options...
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