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What Is The Concept Of A Setoff In Your Bankruptcy?

Posted on 26 Feb 2011 by admin | Filled under: bankruptcy

Research Notes:

* YES- Money judgment: creditor has a right to take money out of your bank account to pay of the debt, or to satisfy the ‘judgment'
* Creditors can serve documents to the bank or credit union to freeze the account
* The creditor cannot take ALL of the money you own, however much you might owe
* Set off: a demand which a defendant makes against the plaintiff in the suit for the purpose of liquidating the whole or a part of his claim.

Article:

Unfortunately for debtors, a creditor has the right to take money out of their bank account to pay off the debt they owe. This processed is known as money judgment, where a creditor is justified in taking money from a debtor's account to satisfy the ‘judgment'. Creditors can also serve documents to the bank or credit union to freeze the account so that debtors cannot access their accounts and place themselves further in debt. Fortunately for the debtors, the creditors cannot take all of the money that he/she owes, regardless of the amount that is owed.

A set off is a demand made by the defendant against the plaintiff in the suit for the purpose of liquidating the whole or a part of his claim. In short, debtors who wish to eliminate or decrease the amount of debt owed to a creditor often file a setoff. Mutual liquidated debts or damages may be setoff; unliquidated damages cannot be set off. A set off is not a dispute regarding the amount of debt owed to the creditor but rather a plea for a reduction.

Also, bankruptcy Can Allow You to STOP: foreclosure, wage garnishment, lawsuits, creditor harassment, and repossessions and it can ELIMINATE: credit card debt, medical bills, utility bills, deficiency judgments, personal loans, and junior liens. The automatic stay should stop creditors from contacting you about your debts and punishes those who continue to harass you.