Collecting On Delinquent Debt: Right Of Offset

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Question:

We have a very delinquent borrower whose spouse signed all the security agreements. The borrower has not been returning phone calls or other various attempts to contact him. He and his wife have a joint account, and the wife has a separate individual account. Last week the borrower endorsed a check to his wife, and she deposited it into her account. The check was proceeds from work subject to the security agreement. The wife has now completed 2 internet transfers to the joint account to cover insurance payment withdrawals. My question is can we place a hold on the wife's account, use right of offset, or any other suggestions to try to collect on the delinquent debt?

Answer:

You are asking a question that should be asked of your legal counsel. In some States on certain types of loans you get one shot to cure. You could end up jeopardizing your remaining loan balances.