Who is Bank of America? I thought they sold my debt to a collector like Midland Funding, LLC or Portfolio Recovery Associates. Why is the debt suddenly back with Bank of America? Sometimes Bank of America will take back the debt from a debt collector when they have decided to bring a lawsuit to collect on it. Read this article to learn how a judgment for debt works in Minnesota.
Our Minneapolis clients often ask how Bank of American is suing them after so many years when they get a summons and complaint. Under Minnesota law, a credit card or loan company has 6 years from the last payment to serve you with a lawsuit. This is called the statute of limitations. If you too are being contacted by lawyers for Bank of America, N.A., here’s what you need to know.
About Bank of America (BofA)
Bank of America is one of the oldest and largest banking institutions in the United States. Certain segments of it date as far back as 1784, while others were formed in the early 20th Century.
Through a series of mergers and expansions, Bank of America has developed into one of the “Big Four” financial institutions in the United States. It now employs more than 200,000 workers and has over 4,600 retail banking centers.
Why is BofA Asking for Money?
As one of the largest banking institutions, Bank of America underwrites a number of home, auto, personal, and student loans. They are also a leading issuer of credit cards.
If you’ve heard from a Bank of America representative, it could be that you have defaulted on a loan or missed a credit card payment. This can normally be resolved with a phone call to the company.
However, if you are seriously delinquent, you could risk foreclosure or auto repossession. After 180 days of missed payments, your Bank of America credit card account will also be considered in default. At that time, BofA may pursue legal action against you.
If Bank of America is calling you, it’s important to make them validate your debt. This is especially important if you are a cosigner on another loan or have recently become a victim of identity theft.
Have Trouble Paying? Don’t Put off Calling Us
When faced with collections, many Twin Cities residents play “hide and seek.” You too may be hiding from Bank of America and hoping they do not catch up with you. If so, the odds of you keeping up this charade indefinitely is highly unlikely.
Bank of America currently holds assets in excess of $1 trillion. A corporation with that much influence does not wish to risk any of its wealth. As a result, you could face aggressive collections actions if you fail to meet your minimum payment obligations.
Rather than dodging BofA, contact our law firm instead. We’ll make sure your rights are completely protected so you do not get railroaded by the system. If you’re in too deep, we can advise you as to whether or not bankruptcy would be an option as well.
Benefits of Filing Bankruptcy
If you have unsecured debt such as a Bank of America credit card, bankruptcy can help you get a fresh start. In Minnesota, there are two different types of bankruptcy you could be eligible for:
- Chapter 7, otherwise known as liquidation bankruptcy. If you have limited income, Chapter 7 could allow you to wipe away all or most of your debt.
- Chapter 13, which is a restructuring bankruptcy. With Chapter 13, you work out a payment plan to repay your existing debt.
Of course, there are pros and cons to each kind of bankruptcy. Allow us to explain the differences and determine if either one is appropriate in your circumstances. If you do choose bankruptcy, we’ll go to work right away getting Bank of America and other creditors off of your back.
Struggling to Pay Back Debt? Schedule a Consultation Today With Walker & Walker
Upon filing bankruptcy, creditors such as BofA can no longer continue their collections efforts. If you are tired of receiving phone calls, make one to our office instead. We are an experienced bankruptcy law firm in the Twin Cities area, and invite you to contact us today to find out more.