Avoidance of debt is a deliberate act to try to avoid creditor attempts to collect or pursue a person's debt. At the basic level, this includes refusal to answer someone's phone by filtering a person's call or by ignoring the notices sent to the debtor about the debt. In more advanced cases, this includes misleading creditors to believe the debtor does not live in a location where the creditor is trying to reach the debtor.
Debt avoidance is commonplace because many people are afraid of creditors when they are in debt and feel uncomfortable with those who are trying to collect debts. But avoidance does not make debt disappear, and does not make debtors less responsible for creditors.
In many cases, debt avoidance is not a crime. All democracy prohibits the imprisonment of the indebted as a method of forcing their payments.
Video Debt evasion
The process is
In the process of debt collection, agents do their job assigned to collect the debt. They are usually employed by large corporations, so the possibility of the same agent talking to the same debtor in a short amount of time is low.
Contrary to what most debtors believe, debt avoidance is not always beneficial for the debtor. The creditor, if not challenged, may take all civil actions that are legally permitted against the debtor. A debtor's willingness to communicate with creditors can help reduce some of these actions.
On the other hand, any information provided to its creditor or collection agent may be used against the debtor in recognition.
Maps Debt evasion
Avoid method used
Deny the existence
Some debtors pretend to die to avoid payments. For example, if called, the debtor can say that he is someone else and claim the debtor did not live there or have died.
Cover removal
Some of the debt is collected by court order. The debtor is summoned to court and must be served by a call, usually at the hands of the sheriff. Many attempts to avoid contact with the sheriff and pretend they never received a call. But failure to come to court can only harm the debtor. If the creditor shows to the court and the debtor does not, the creditor is automatically granted the case and starts collecting.
Statute of limits
Some jurisdictions have restrictive laws that limit the time between the last activity on debt and the start of a civil lawsuit. After the restriction period ends, the debtor may use this fact to terminate a call from the agent by claiming a civil suit to be commenced, at which point they can successfully defend based on the expiration of the period of restriction.
Foreign bank account
Some may be able to protect their assets by transferring them to bank accounts in a foreign country, where money is deemed untouchable in accordance with the laws of the country in which the verdict is made. However, in the United States, more recent court rulings have made this more difficult.
Note
See also
- Bankruptcy
- Liquidation
- Administration
- Beneficiary Administration
References
- Stanley G. Hilton, To Pay Or Not To Pay: Insider Secrets To Beating Credit Card Debt and Creditors, ISBNÃ, 1-58062-944-X.
External links
- The Bankruptcy Services Website
Source of the article : Wikipedia
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