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debt collection practices

Date: Tue, 05/24/2005 - 13:02

Submitted by anonymous
on Tue, 05/24/2005 - 13:02

Posts: 202330 Credits: [Donate]

Total Replies: 2

debt collection practices


Under Ma law, may a creditor add 15% attorney fees to the debt so that the total debt that the debtor sees is both the debt and the 15%?


Hi Natasha

Generally attorney fees are added in the debts. Please check the laws in your state to see whether it is functional in your state or not.

However, if you have to pay the attorney fees along with the court costs associated with a discrimination lawsuit, you can claim for a tax deduction. This deduction has been available since October 22, 2004 only for the court costs and fees incurred. Though it is not limited by the alternative minimum tax, only a few taxpayers will be eligible this year.

Please do let us know if you have further queries on it.

Regards
Roxette


lrhall41

Submitted by roxette on Tue, 05/24/2005 - 13:39

( Posts: 4009 | Credits: )


Hi Natasha,
Welcome to forums. We understand your situation.

Firstly, you should be aware that a creditor could add attorney fees to your total debt if it is stated in the agreement with the creditor. Furthermore, they cannot charge anything more than stated in the statute.

So as per Massachusetts law, in certain circumstances attorney fees can be 15% and a creditor can add it if it is agreed upon by both of you. In general attorney fees are 20% of the settlement amount in Massachusetts.


All the best
Peter


lrhall41

Submitted by peter on Wed, 05/25/2005 - 04:24

( Posts: 285 | Credits: )