Legal Question in Credit and Debt Law in Maryland

Debt Collection

What if you are being suied by a debt collector, and the debt has be charged off by the original accout owner, but was debt was purchased by a new company. Does the new company has a right to sue you for the debt after its been charged off?


Asked on 8/06/08, 8:31 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Debt Collection

Yes. A charged-off debt is just an accounting entry indicating that it is not a performing asset on their books. They can still sell the asset, and the buyer can attempt to collect it.

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Answered on 8/06/08, 10:04 am


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