Know About The Concept Of Credit Setoff

By Author: Nancy Shevell
Total Articles: 263
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When Can A Creditor Go Into Your Account And Take Your Money To Setoff The Amount You Owe Without Court Permission? What Is The Concept Of A Setoff?

Research Notes:

• YES- Money judgment: creditor has a right to take money out of your bank account to pay of the debt, or to satisfy the ‘judgment’
• Creditors can serve documents to the bank or credit union to freeze the account
• The creditor cannot take ALL of the money you own, however much you might owe
• Set off: a demand which a defendant makes against the plaintiff in the suit for the purpose of liquidating the whole or a part of his claim.

Article:

Unfortunately for debtors, a creditor has the right to take money out of their bank account to pay off the debt they owe. This processed is known as money judgment, where a creditor is justified in taking money from a debtor’s account to satisfy the ‘judgment’. Creditors can also serve documents to the bank or credit union to freeze the account so that debtors cannot access their accounts and place themselves further in debt. Fortunately for the debtors, the creditors ...
... cannot take all of the money that he/she owes, regardless of the amount that is owed.

A set off is a demand made by the defendant against the plaintiff in the suit for the purpose of liquidating the whole or a part of his claim. In short, debtors who wish to eliminate or decrease the amount of debt owed to a creditor often file a setoff. Mutual liquidated debts or damages may be setoff; unliquidated damages cannot be set off. A set off is not a dispute regarding the amount of debt owed to the creditor but rather a plea for a reduction.

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