Debt Collection Blog

Debt Collection FAQs

Debt Collection FAQs: Your Questions Answered

This FAQ answers common debt collection questions, explains what collectors can and cannot do, and outlines steps consumers can take next.

Debt Collection FAQs

What Happens When You Get Served Papers for Debt?

When you get served papers for debt, the clock starts ticking. You must respond before the deadline or risk a default judgment and potential wage garnishment.

Debt Collection FAQs

What Is a Rule 3.740 Collections Defense in California?

A Rule 3.740 Collections Defense in California applies to debt collection cases under $25,000; it limits discovery and streamlines procedures.

Debt Collection FAQs

Is a Power of Attorney Responsible for Debt After Death?

No — having power of attorney does not make you responsible for the principal's debt when they die unless other legal ties obligate you.

Debt Collection FAQs

Does Debt Consolidation Have Risks?

Yes, debt consolidation has risks: you might pay more in interest, face harsher penalties for missed payments, or rack up new debt on freed-up credit lines.

Debt Collection FAQs

How Many Times Can a Judgment be Renewed in Oklahoma?

A judgment can be renewed in Oklahoma indefinitely, but the renewal must happen once every five years, otherwise it is past the statute of limitations.

Debt Collection FAQs

How Long Does a Levy Stay on a Bank Account?

A bank levy stays on your account until the debt is fully repaid. Even if your bank account sits at $0, creditors will return to collect from new deposits.