Manassas Consumer Protection Blog

We had another happy client, defending him from a zombie debt buyer.

Back in 2007, the client lost his home to foreclosure. At the time, he had a second mortgage on his home which he also defaulted on. Years went by, and he heard nothing from the second mortgage company. He was able to rebuild his life and get another house. In Virginia, the statute of limitations, or time frame within which a lawsuit can be brought to collect a written debt is 5 years from the date of breach. So by the end of 2012, any rights that the second mortgage company had to come after the debt died a peaceful death. Unfortunately, there are companies out there who like to resurrect the dead debts - they are known in the industry as zombie debt buyers because of that practice. 

Here at the law firm of Thomas R. Breeden, P.C., we fight for consumers who have been wronged in unfair commercial transactions to their detriment. An important tool for protecting consumers in Virginia is the broadly reaching Virginia Consumer Protection Act or VCPA. 

We recently wrote an article introducing the main provisions and remedies within the VCPA. As we said there, this legislation provides Virginians the right to sue merchants that have caused financial loss through a variety of fraudulent or deceptive transactions.

Major changes take effect in 2019.

The new federal tax bill will make major changes to the tax treatment of alimony, which has remained unchanged since 1942. Currently, every dollar of alimony paid is deductable by the paying ex-spouse, reducing his or her taxable income by that amount and thereby reducing his or her tax bill. This will remain true for divorces finalized, or valid prenuptial or separation agreements resolving alimony arrangements signed, through the end of 2018. Beginning with 2019 divorces, prenuptial or separation agreements, alimony paid will no longer be deductable on federal returns.

To be safe, if in 2018 a couple signs a prenuptial or separation agreement in which they agree to alimony terms, it is recommended to have the state court affirm it in a court order before 2019.

Complex legal issues can arise concerning the statute of limitations.

For a variety of reasons, people find themselves faced with old personal debts like credit cards, installment contracts for consumer goods, service agreements and others. Before deciding what to do, if anything, about an old debt - whether you believe you originally owed the money or not - it is important to understand the legal impact of the applicable statute of limitations as well as the limitations on what a debt collector can do about the debt.