Q&A Regarding the handling of debt.

Everyone would get and stay out of debt if it were that easy.

However, with the current outstanding consumer debt at nearly $3 trillion – there are definitely some problems. 

Common Questions Regarding Debt

Question: Is it wise to borrow from my IRA or 401k to pay off debt?

Answer: By looking for the money to pay off debt, you ignore the reason you’re going into debt. It is highly suggested to fix your current problems before looking for a final solution to your debt.

Question: A former spouse was assigned specific debts during our divorce but has not paid them and is ruining my credit? What should I do?

Answer: As a joint owner of an account creditors have the legal right to attempt to collect debt owed from you. Not to mention that the charge-off of the debt will remain on your credit report. It would be best to contact your attorney and ask about having your ex held in contempt for not obeying the divorce decree.

Question: Can my Social Security benefits be garnished?

Answer: Banks are required, by the U.S. Department of Treasury, to protect federal benefits from being garnished. However, the federal benefits must be directly deposited into the bank account and the protected amount is restricted to the total of two previous months of benefits deposited prior to the garnishment order.

Question: After my fiancée and I are married will her creditors seek me for her bills?

Answer: The sole responsibility of any debts accrued is of the owner of the debt after marriage. If you share a joint bank account with her and her creditors sue in court, then it is possible that the funds can be garnished from the bank account.

Question: How do I protect my credit if I co-signed a loan for my relative and he has stopped paying what is owed?

Answer: It will likely be in your best interest to make payments on the loan. As the co-signer you have a responsibility towards the loan and can collect from you.

Question: My debt is past the statute of limitations. Why is it still being reported on my credit report?

Answer: The statute of limitations varies on what kinds of debt and debt by state. Regardless, it has nothing to do with the reporting your credit.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

http://www.marcadislaw.com

Q & A’S REGARDING THE FLORIDA COURT SYSTEM

Q. We hear a lot about small claims.  Is there an advantage in filing in small claims court?

A. In Florida Court System you cannot choose to file in small claims court. Whether you file in Small Claims, County Civil, or Circuit Civil depends on the size of your case.   Small claims court filings are for cases with balances of $1.00 to $4999.99.  County Civil cases are for balances of $5,000.00 to $14,999.99.  Circuit court Cases are for balances $15,000.00 and over.  The balances are determined without interest and attorney fees.

As a practice note, you could chose to lower your claim amount to under $5000.00.  If you did the court would not have jurisdiction to award more than that.

Q. How is small claims court different than County or Circuit Civil Court?    

 
A. The difference begins with how the cases start.  In Small Claims Court the Clerk of Court issues a “NOTICE TO APPEAR” with a Pre Trial Conference date set forth in the notice.   The defendant needs to be served with the “Notice to Appear”.   All parties must appear at the Pre Trial Conference.  If the Defendant is served and fails to appear we get a default.   If the defendant is not served with the notice we need to locate a better address, we have the clerk reissue the notice to appear and we start over.

At the pre-trial conference, the defendant will either admit or deny the debt.  Either way, in most counties, the judge or clerk will send us to mediation to attempt to resolve the matter.  For example, in Orange County (Orlando) and Pinellas County (St. Petersburg and Clearwater, Florida) we will be in mediation before we even see the judge.  Therefore, it’s always best for us to have settlement authority going into the pre-trial or at least a phone number and person to contact with our client.

With County Civil and Circuit Civil cases the clerk of court issues a 20 day summons.   The process server or sheriff must serve the summons on the defendant at which time the defendant is required to file a pleading (motion to dismiss or answer) with the court with a copy to our office.

Q. Can the client appear by phone at trial or mediation?

A. The general rule for Small Claims cases is yes, the client and other witnesses can appear by phone for both the mediation and trial.   As always there are some judges who will refuse to allow our client’s to appear by phone.

For County and Circuit Civil cases the general rule is no, however it will depend on the opposing party and judge’s wiliness to permit the witness to appear by phone.

As a practice note:  It is less effective for the client to attend a trail by phone as the judge may be less able to judge the credibility of the witness.  A judge once indicated that if all things being equal, (“he said; she said” issue) the person sitting before him and not the client on the phone will more likely win