Legal Question in Business Law in Maryland

applied interest rates after a debt leaves the lender

credit card debt that has left the original creditor for collection, sent to a debt collecting agency that applied interest that was sent to a lawyer who has applied additional interest, can i be charged interest after it has left the credit card agency and i plan to appear in court because the lawyer filed a judgement against me, if found guilty of this debt because it is a large debt although less than $5,000 what options will they give me to pay this debt off example a payment plan set up through the courts as i do not have a lump sum to give them


Asked on 11/28/05, 1:26 pm

2 Answers from Attorneys
Robert Sher Wagshal and Sher

Re: applied interest rates after a debt leaves the lender

The interest you will be charged will be based on your agreement with the credit card company. Interest continues to run until the debt is paid. You can contact the collection attorney and work out a payment plan with them.

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Answered on 11/28/05, 1:53 pm
Michelle Stawinski Bouland & Brush LLC

Re: applied interest rates after a debt leaves the lender

You will be responsible for interest until the debt is fully paid (it will continue to accrue even after a judgment is entered). If you would like to make payments over time, you should contact the attorney and reach a settlement before a judgment is entered. After a judgment is entered, your wages can be garnished and any property that you own is subject to attachment and forced sale (at the creditor's convenience). That includes not only your home but also any personal items that you may own of value (antiques, cars, jewelry, etc.).

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Answered on 11/29/05, 8:47 am


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