When Is Debt Referred For A Lawsuit?

Central Collections generally does not sue anyone for a debt of less than $750, although if the debt was more than that, they follow a specific process. First, they will generally do some research to see if the debt was really collectible by determining if the person had any assets, if they owned real estate or if they were working or operating a business in the State of Maryland. If that person wasn’t working and had no business or real estate, they will file a lawsuit to try to collect.

The size of the debt doesn’t really make any difference in how they go after a debtor, although there are limits in certain courts. There is a limit of $25,000 to file suit in District Court, so anyone who owed more than that would have to go to Circuit Court, which makes the case a bit more complex with regard to the procedures the State of Maryland has to follow. As far as filing for bankruptcy, it doesn’t make a difference whether the case is in a Circuit Court or a District Court, so in reality, the size of the debt makes no difference in terms of stopping the State of Maryland.

Will a Judgment From The State Of Maryland Affect Someone’s Credit or Anything Else?

A judgment from the State of Maryland has no greater or lesser effect on anyone’s credit than a judgment from any other creditor, but the judgment won’t help their credit score, either. Buying a house will be difficult with a judgment from any creditor, not just the state.

Whether or not someone can get a security clearance would probably also be decided on a case by case basis, since so many different agencies at many different levels issue security clearances and each has its own policies. This is something that should be discussed with an experienced bankruptcy attorney regarding a specific case.

As a general rule, I have found that filing for bankruptcy does not affect anyone’s security clearance; in fact, it often makes it easier to get one, since they have settled all their debts. That makes them a better security risk than if they owed money to a lot of creditors, who might be able to wield influence over them. We have filed many bankruptcies over the years for people with security clearances and it has never been a problem.

For more information on How Debt Affects A Lawsuit, a free initial consultation is your best next step. Get the information and legal answers you’re seeking by calling 443-860-0088 today.