Legal Question in Credit and Debt Law in Georgia

Sure. Its not illegal for a creditor or debt collection agency to continue trying to collect on a debt. However, that does not mean you have any duty to pay it. Also, the collector's threats may be empty depending on what exactly the dismissal reads. Does it say case dismissed with prejudice or without prejudice?

It makes a huge difference. With prejudice means that the creditor cannot ever come back and sue on this debt again. Without prejudice means that you can still be sued again provided that the statute of limitations has not expired. In the former case, a debt collector could try and could collect the debt but they could not threaten to sue or garnish wages because there would be no ability to sue on the debt. In the latter, you still could be sued again in theory.

My guess is that the debt was sold by GMAC to a junk debt buyer like Portfolio Recovery or Midland Funding. The junk debt buyer was unable to present the court with sufficient information that it was now the owner of the debt and had a right to collect thereon so the court dismissed the case. The junk debt buyer then sold to someone else. If this is the case, chances are that the junk debt buyer could not provide verification of your debt and any new junk debt buyer cannot either. If that is the case, you simply dispute the debt again.

However, I am speculating and have not seen any of the court papers or the collection letter you received. I suggest that you take the papers to a local lawyer or someone like me and have them reviewed. Perhaps the lawyer can send a dispute letter to the debt collector on your behalf for a fee. There is a special rule under the federal fair debt collections practices act (FDCPA) which provides that a creditor cannot contact you when they know you are represented by counsel, so it would be worth if financially if the facts are as you relate. Please contact me at [email protected] if you would like further assistance with this matter.

If the case was dismissed without prejudice yes it can be refiled. What you should do requires a lawyer. In some cases you will have defenses or counterclaims. In some cases you should go bankrupt. The wrong choice or response could be very costly.