Legal Question in Credit and Debt Law in Texas

Collection Agency

Can a collection agency collect on an accont that the original creditor has closed? The accont was not sold are transfered it was closed. The collection agency is Northland Group Inc.


Asked on 4/13/07, 9:45 pm

2 Answers from Attorneys
James Grissom Law Office of James P. Grissom

Re: Collection Agency

'fraid so. It's still a debt due and owing - if the statute of limitations has not expired. Then it's still a debt, just can be sued on.

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Answered on 4/13/07, 10:23 pm
Peter Bradie Bradie, Bradie & Bradie

Re: Collection Agency

"Closing an account" is a bookkeeping entry allocating income for accrual accounting. An open account is considered income for tax purposes.

Closing the account doesn't eliminate the debt. It merely removes the amount from the creditor's income statement.

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Answered on 4/14/07, 12:56 pm


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