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Debtor Creditor Answer Template.

Summary of Analysis

(1) debtors that are short of money use a cost/benefit analysis focused upon creditor leverage over the

debtor in allocating their payments; (2) creditors with collection problems use a different cost/benefit

analysis focused upon the comparative cost of collection methods; (3) careful creditors create future

leverage over their debtors by taking a security interest when a loan is made; (4) debtors historically

have filed bankruptcy more frequently than creditors have filed formal legal collection proceedings; and

(5) the boundaries drawn by debt collection laws affect the behavior of debtors and creditors.

FCRA

15 USC Sec 1681i,m,n&o. Ironically, to the extent FCRA has made records more accurate, the C threat to

make an accurate negative report creates greater leverage.

FDCPA, 15 USC Sec 1692 et seq.,

The FDCPA prohibitions include: disclosure that a consumer owes a debt in seeking location information,

Section 1692b; without the consent of a consumers accessible and responsive attorney, communicating

with the consumer; without the consent of a consumer, communicating at an unusual time or place or

with third parties, or at a consumers place of employment if the debt collector has reason to know this

is prohibited by the consumers employer, Section 1692c; engaging in any conduct the natural

consequence of which is to harass, oppress, or abuse any person, Section 1692d; using false, deceptive,or misleading representations or means to collect a debt, Section 1692e; and use of unfair or

unconscionable means to collect a debt, Section 1692f.

Here the facts ________________________

FDCPA prohibitions apply to a debt collector. The key definition of debt collector provides:

any person who uses any instrumentality of interstate commerce or the mails in any business

the principal purpose of which is the collection of any debts, or who regularly collects or

attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due

another. Notwithstanding the last sentence the term includes any creditor who, in the

process of collecting his own debts, uses any name other than his own which would indicate

that a third person is collecting or attempting to collect such debts.

Section 1692a(6)

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In Heintz v. Jenkins, SCOTUS held that debt collectors covered by the FDCPA include attorneys that

regularly collect consumer debts through litigation.

Execution

10 day waiting period after a final judgment has been entered in ct records for the judgment to become

executable through issue of a valid writ of execution.

Here ____________ [since mistankenly issued during waiting period, it is void and has no legal effect]

Supercedeas Bond

Unless a supercedeas bond has been posted by a Judgment D, a final Judgment is executable through a

writ of execution even if an appeal has been filed by Judgment D

Turnover Orders

Statutory liens

Property exempt from collection process

Competing unsecured C

Aging Judgment

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Garnishment

Used to impose Judicial lien upon both nonexempt tangible personal property of a D in the possession of

3rd parties and nonexempt obligations owed to a D by third parties. Bank account which in substance is a

banks unsecured debt to an acct holder is one of the most frequently garnished debts

Obligations owed to a judgment D for contract to perform future services for the Judgment D are not

garnishable!Check facts

A depositary banks right of setoff typically has priority over a garnishment lien in a judgment debtors

bank account!

Wage Garnishment- See PS 2

Policy Considerations

Protect Consumers from undue aggressive debt collection. Right to accurate credit information