Can a debt you owe be sold to a different company without your permission?
Yes. A creditor can transfer the debt you owe them to another entity without your permission. It is common for a creditor to transfer an unpaid debt to a debt buyer. Following the transfer, the debt buyer then has the right to collect the debt from you even though you never had any agreement or connection with the collecting company. You would still remain legally obligated to pay the debt, even though it is being collected by a different company.
Can a collection company collect on a debt that was previously charged off?
Yes. You remain legally obligated to pay a debt even if the debt is charged off by a creditor. When a creditor charges off a debt that just means that the creditor no longer intends to attempt to collect the debt from you. The creditor is still able to transfer the debt to another entity. The company that acquires the debt can then take action to collect the debt from you even though the original creditor charged off the debt.
Can filing a bankruptcy case help with debt collections?
Yes. Filing a case under Chapter 7 or Chapter 13 can stop creditors from taking actions to collect debt from you. It may be possible to eliminate the debts altogether or restructure the debts in a way that makes it more affordable.
Collection companies can be aggressive and use a variety of tactics to attempt to collect money from you such as:
- Taking you to court
- Garnishing your wages or funds in your bank account
- Getting liens on your property.
You do not have to face this alone. Financial Freedom Legal can help you resolve your debts and get peace of mind. We offer free consultations 7 days a week. You can complete an appointment via telephone, Zoom, or in-person at our office. Your journey to financial freedom is only a click or phone call away, contact us to schedule your free bankruptcy consultation today!
