A judgment may allow a creditor to file a lien on your property or garnish your accounts, for example. Certainly, after a specific period, which is specified in the statute of limitations for each state, a debt may not be enforceable after the statutory period has passed. If you can’t afford to pay anything and have other debts and no assets, dealing with bankruptcy is also an option. Even if the collection agencies push you to court, you can use the fact that the statute of limitations on your debts has expired to defend you.
Can debt collection agencies stop you from leaving the country?
If you still have assets in the US, including bank accounts or investments, your creditors can seize those assets to repay your debts. That is good news and bad news as you need to start building a credit rating in the country you want to settle down in. As your financial situation improves, you can switch plans to a plan that focuses on repaying your debts faster.
What can debt collection agencies not do?
The only way a collection agency can garnish your pay or accept personal property is to sue you in court and obtain a verdict. If you feel powerless when dealing with collection agencies, you should know that their tactics are limited by the Fair Debt Collection Practices Act It’s helpful to work with a lawyer who knows the collection practices, particularly if you’re wondering how to deal with a time-barred debt or is suing were. The Fair Debt Collection Practices Act (FDCPA) is a federal law that imposes restrictions on what collection agencies can do when collecting certain types of debt.
References:
- Stopped at Airport for Debt UK? Here's What You Should Know
- Frequently Asked Questions About Debt and Traveling
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.