Vermont Debt Relief
Vermont Credit Card Debt law allows creditors a 4-year Statute of Limitations (SOL), or time limit to file suit, on open-ended accounts. The onset of this time limit is the date of the first missed payment but the SOL restarts if any further partial payments are made. Debtors have 20 days to answer when served with a summons. To avoid default judgment, it is wise to send the answer by certified mail, ensuring it arrives on time.
Vermont judgments remain enforceable for 8 years, accruing interest yearly at 12%. They may be renewed within the 8-year time limit. Recording the judgment with the appropriate town clerks office creates a lien against the debtor’s real property. Homestead exemptions are allowed up to $75,000, with some additional personal property exemptions. In Vermont, a contract clause for “judgment by confession,” where the creditor does not need to file suit to enforce a judgment, is unenforceable.
Consumer debt wages may be garnished up to 15% of disposable income. The debtor may be able to exempt all wages by showing in court that the income is necessary to his living expenses and those of his dependents.
Consumers may arrange a Debt Settlement plan in which payments can be made free of interest. This can help consumers avoid bankruptcy and protect their property and wages. In addition, Debt Settlement gives consumers a say in how much they pay and when they pay, rather than relying on a court order to protect their interests.