Legal Help

[helppls]

It’s between a debtor and creditor. The creditor didn’t give any letter/call/notice to the debtor for the past 3 years and then later executed the writ of seizure. Items in the house were auctioned but the creditor was unsatisfied with the outcome of seizure, turned to debt collection company which harass, threaten, ransom etc (terrible ways, there is police report & witness). This case has been more than 6 years, now the creditor give a letter to demand for payment of more than $10k or else bankruptcy act will be issued to the debtor.

I sympathy the debtor cos the creditor knew the debts were caused by his ex-husband but she’s the sole-proprietor. She did many occasions to talk to the creditor but they are really too much, executed the law but didn’t pay respect, interest of 24% pa, 1-time payment, a real bully I can say . The creditor even told her they will accumulate the interests over the years and suit for bankruptcy once hit 10k. This maybe creditor's motive to keep silent for non-payment and then make a profit of interests (compared to bank rate of 0.125%). I never see this type of creditor, didn’t listen at all, use all means, persisted for more than 6 years for an est. comp. & the amount is small for an est. comp. Does Law only protect creditor? The writ charges & fees all bear by debtor (not fair right, poor still add more charges). Does the creditor need to pay for their act like threaten etc.? Can someone give some advice?
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[beppi]

Didn't the loan terms with 24% interest tell your friend that the creditor is unscrupulous?
I guess the only legal ways out of the debt is paying it back or filing for bancruptcy.

[ecureilx]

Didn't the loan terms with 24% interest tell your friend that the creditor is unscrupulous?
I guess the only legal ways out of the debt is paying it back or filing for bancruptcy.

Isnt' 24% PA what credit cards and unsecured Loans entail when you don't pay on time ??

[helppls]

it's not regarding to credit cards la.

Understand fm lawyer can counterclaim the creditor for their illegal ways after the seizure.....hv police repts & witness

there shld be a stop how can a debt be forever. the creditor mentioned they will accumulate over the years then suit to take back (too bad no recorder).

[sundaymorningstaple]

Frankly the borrower knew when the loan was taken, how much the interest rate was. Whether or not the lender approached the borrower in a year of 5 years, is of no consequence as the borrower already knew the interest rate. If the borrower refused to pay, then the lender has every right to sue for payment anytime they may wish, unless the lender signed a gifting document forgiving the debt in full.

Sorry, but the burden is on the lender this time.

[JR8]

Didn't the loan terms with 24% interest tell your friend that the creditor is unscrupulous?
I guess the only legal ways out of the debt is paying it back or filing for bancruptcy.

Isnt' 24% PA what credit cards and unsecured Loans entail when you don't pay on time ??

Yep, but believe it or not they don't have credit cards in Germany, never mind unsecured loans, so Beppi probably doesn't know that.