Full question:
I am a housewife for these past 22 years. If I owe a debt and responded in court that yes I owe the debt made payment arrangements (paid at the lawyers office) as agreed then why are they issuing a citaion to my bank as third party to reveal assets or income. Most importantly why tangle up my bank acct. to the tune of nearly $20,000. (They doubled the amount owed.)
- Category: Debts and Credit
- Date:
- State: Illinois
Answer:
In some cases, a debtor may be able to negotiate a settlement with the creditor, although this is more difficult once a suit has been filed. In some cases, the creditor may settle for a lesser amount if the debtor is insolvent, since a promise to pay something is better than collecting nothing. These types of agreements are called an accord and satisfaction. If it is possible, a debtor should get a release included in such an agreement so that the creditor may not pursue the full balance of the debt claimed.
The answer will depend on all the facts and documents involved, such as whether the creditor obtained a judgment, as if so, whether it contained a release of further claims and damages were granted for interest, fees and costs. It is possible for a creditor to claim interest and fees for collection on top of the amount owed. Through the discovery process, a party may obtain financial records of the opposing party and it is possible for the court to issue an order to freeze assets, which may be attached and used to pay a judgment issued in favor of a creditor.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
