Whether you're borrowing money or providing a loan to someone else, a Promissory Note is usually the best way to establish a record of the transaction and make sure that repayment terms, for example, are clear and fair.
However, an “IOU†is generally regarded as only an acknowledgment of a debt, not a promise to pay the debt. However, this form is a written promise to pay a debt.
Generally, when you are served, you are considered to be on notice that the plaintiff has filed a lawsuit against you. Being on notice of the lawsuit triggers your responsibility to respond to the lawsuit within a certain time period or risk the plaintiff winning by default because you did not answer.
You can attempt to negotiate a settlement. Unfortunately, you cannot force the creditor to settle; however, if you may an offer they accept then it will settle. If you can settle the case quickly and well before the response deadline then you may not have to file a response.
If a judgment in a lawsuit is entered against you, the creditor has several ways to collect the judgment. One option is garnishment. There are two kinds of writs of garnishment: Writs of Continuing Garnishment - used to garnish earnings (wages)
Settling is always better than going to court. A court-ordered judgment is SERIOUSLY life-affecting. Your wages could be garnished and the judgment will forever be on your record. You may even find the court case in various places on the internet.
In Utah, for most debts, a creditor has six years to take legal action on that unpaid debt. After the statute of limitations expires, a creditor or debt collector can no longer sue you for the debt.
Debt collection is the most common type of civil legal action in Utah, and one-third of all Utah debt collection cases are filed against people experiencing medical debt.
The phrase in question is: “Please cease and desist all calls and contact with me, immediately.” These 11 words, when used correctly, can provide significant protection against aggressive debt collection practices.
What to Include in a Debt Verification Letter Details about the original creditor. The original loan agreement that proves your obligation to repay. Documentation showing the age of the debt and the original delinquency date. A comprehensive itemization including dates for added fees and interest.
