Is it possible for a debt collector to pursue debtors that owe them money? If your parents' owe the debt collector money, then yes, the debt collector can come after your parents for the money they owe.
Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.
A debt collector can contact your spouse. A debt collector can contact your parents or guardian if you are under 18 years old or live with them. A debt collector can also contact your attorney and, if otherwise allowed by law, credit reporting companies (Equifax, Experian, and TransUnion) about your debt.
In general, children are not responsible for their parents' debts. Debt is typically tied to the individual who incurred it, and creditors usually cannot pursue a child for a parent's debts after the parent passes away or if they are unable to pay. However, there are some exceptions and nuances to consider:
Your mother or father may have had substantial credit card debt, a mortgage, or cr loan. The short answer to the question is no, you will not be personally responsible for the debt, but failure to pay such a debt can affect the use and control of secured assets like real estate and vehicles.
The FDCPA and Minors
Several of these establish guidelines that debt collectors must follow when dealing with minors. For example: A debt collector may not contact a minor unless the minor's name is listed on a debt along with his or her parent.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.
The decision to sue often depends on the debt's size (usually a minimum of $1,000), age, and original agreements. Debt collection practices for unpaid credit card balances frequently lead to court cases. If sued and found liable, you may face additional costs through interest and fees.
If you continue not to pay, you'll hurt your credit score and you risk losing your property or having your wages or bank account garnished.
Create your own estate plan today
Many Baby Boomers plan to pass down inheritances to their loved ones, but some aren't so lucky. It may come as a relief to find out that, in general, you are not personally liable for your parents' debt. If they pass away with debt, it is repaid out of their estate.
More frequently than most consumers probably realize. While precise statistics are difficult to come by, legal experts estimate that several million debt collection lawsuits get filed across the United States every single year.
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
Even though your card issuer "writes off" the account, you're still responsible for paying the debt. Whether you repay the amount or not, the missed payments and the charge-off will appear on your credit reports for seven years and likely cause severe credit score damage.
The amount of time that a debt collector can legally pursue old debt varies by state and type of debt but can range between three and 20 years. Each state has its own statute of limitations on debt, and after the statute of limitations has expired, a debt collector can no longer sue you in court for repayment.
Once you notify the debt collector in writing that you dispute the debt, as long as it is within 30 days of receiving a validation notice, the debt collector must stop trying to collect the debt until they've provided you with verification in response to your dispute.
This practice, debt buying, is legal and commonly employed by collection agencies seeking to recoup the money owed to creditors. However, there are regulations in place to govern this process and protect consumers from unfair practices.
While the law offers protections for family members, it also allows debt collectors to contact family members to discuss obligations. Under the Fair Debt Collection Practices Act (FDCPA), collectors can contact and discuss outstanding debts with the deceased person's: Spouses.
Most consumer debts will “expire” after three to six years, meaning a creditor or debt collector can no longer sue you for them. You're still responsible for paying old debts, but waiting until the statute of limitations runs out might help you avoid future legal issues.