Truck repossed and debt sold to someone else.

[captain149]

What is the name of your state (only U.S. law)? Ks. Asking this for a friend of mine. She and her husband divorced. Her name was still on his truck loan. He ended up having the truck repossesed. Since that time the debt has been sold 2-3 different times. Each time it is sold the new collector calls her and makes her an offer to settle for less and less. She says she is not paying since the divorce decree seperated their assets. She already has bad credit so she does not care that that shows up on her credit report. My question is can her wages be garnished? She says they cant since it is not the original debt holder. What kind of consequences could she face? Will the debt ever clear off her credit report? Thanks for your time.

 

[Antigone*]

What is the name of your state (only U.S. law)? Ks. Asking this for a friend of mine. She and her husband divorced. Her name was still on his truck loan. He ended up having the truck repossesed. Since that time the debt has been sold 2-3 different times. Each time it is sold the new collector calls her and makes her an offer to settle for less and less. She says she is not paying since the divorce decree seperated their assets. She already has bad credit so she does not care that that shows up on her credit report. My question is can her wages be garnished? She says they cant since it is not the original debt holder. What kind of consequences could she face? Will the debt ever clear off her credit report? Thanks for your time.

If a judgement is obtained then yes her wages and accounts can be garnished. No one except your friend and spouse are party to the divorce so the creditors do not have to adhere to the decree.

The debt may eventually go away, she may be sued and then it goes on for much longer. Only time and the creditor will tell.

 

[captain149]

So the newest debt collector could go to court and get a judgement if they wanted too? Why have none of them done that up to this point?

 

[Antigone*]

So the newest debt collector could go to court and get a judgement if they wanted too? Why have none of them done that up to this point?

Yep!!! I guess it is just the luck of the draw.

 

[TigerD]

So the newest debt collector could go to court and get a judgement if they wanted too? Why have none of them done that up to this point?

Business model and practices most likely. Before suing, most CAs will preform an asset and employment search. If there is no reasonable collection possibility, they generally don't sue unless it is close to the SOL. Then some CA will - some won't.

DC