Which state law controls a debt settlement – the debtor’s home state or the collection agency’s home state?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Which state law controls a debt settlement – the debtor’s home state or the collection agency’s home state?
I read that even if you settle with a collection agency they can put on the money order that they do not agree with the payment as full amount for debt. I learned that some states allow them to sell or go after you for the rest of the money.
Asked on February 12, 2012 under Bankruptcy Law, Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The law of the state where the judgment was entered against the judgment creditor controls with respect to your question. If you have some monthly installment payment or payment in full of the judgment against you, make sure that there is a written agreement signed by the judgment creditor or his or her assignee and as part of the final payment you get a document entitled "full satisfaction of judgment" so that you can have it filed in the case where the judgment arose.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.