Legal Remedies & Court Proceedings Flashcards

When a debt collector files a lawsuit to collect a debt and the debtor does not respond within the required timeframe, the court may issue a:

Answer: Default judgment

A default judgment is entered by the court when the defendant fails to respond to a lawsuit within the prescribed time, allowing the plaintiff to win by default.

The statute of limitations on a debt refers to:

Answer: The period during which a creditor can legally sue to collect a debt

The statute of limitations defines the window of time within which a creditor or collector must file a lawsuit to collect a debt; after it expires, the debt is time-barred from legal action.

Which document formally notifies a debtor that a lawsuit has been filed against them and requires them to appear or respond?

Answer: Summons and complaint

A summons and complaint is the legal document served on the debtor to initiate a lawsuit and inform them of the allegations and their obligation to respond.

A writ of execution in debt collection proceedings is used to:

Answer: Authorize law enforcement to seize debtor assets to satisfy a judgment

A writ of execution is a court order directing law enforcement to seize and sell the debtor's non-exempt assets to satisfy an outstanding judgment.

Small claims court is typically used in debt collection for cases involving:

Answer: Smaller dollar amounts, usually under state-set thresholds

Small claims court provides a simplified, lower-cost venue for resolving disputes involving smaller amounts of money, with dollar limits set by each state.

Filing a collection lawsuit after the statute of limitations has expired is a violation of:

Answer: The Fair Debt Collection Practices Act (FDCPA)

The FDCPA prohibits collectors from filing or threatening to file a lawsuit on a time-barred debt because it constitutes a deceptive or unfair practice.

Before a judgment creditor can garnish wages or levy a bank account, the creditor must first:

Answer: Obtain a court judgment against the debtor

Wage garnishment and bank levies are post-judgment remedies that require a valid court judgment before they can be pursued.