Indiana Code 28-1-29-8.8. Debtor’s failure to make payment; cancellation of agreement; letter of continuation; return of money to contract debtor
(1) one (1) or more creditors included in the contract debtor‘s plan object to the termination; or
Terms Used In Indiana Code 28-1-29-8.8
- Agreement: means an agreement between a debt management company and a debtor for the performance of debt management services. See Indiana Code 28-1-29-1
- Contract: A legal written agreement that becomes binding when signed.
- Contract debtor: means a debtor who has entered into a written agreement with a licensee. See Indiana Code 28-1-29-1
- Debtor: means an individual whose principal debts and obligations arise out of personal, family, or household use and not out of business purpose transactions. See Indiana Code 28-1-29-1
- Licensee: means any person to whom a license has been issued pursuant to the provisions of this chapter. See Indiana Code 28-1-29-1
- Month: means a calendar month. See Indiana Code 28-1-29-1
- Plan: means a written debt repayment program in which a debt management company furnishes debt management services to a contract debtor and that includes a schedule of payments to be made by or on behalf of the contract debtor and used to pay debts owed by the contract debtor. See Indiana Code 28-1-29-1
(b) A contract debtor may file a letter of continuation of an agreement even if the contract debtor did not make a payment within ninety (90) days after a payment was due. All of the following apply to a letter of continuation of an agreement:
(1) A contract debtor may file only one (1) letter of continuation with a licensee for each twelve (12) month period the agreement is in effect.
(2) A letter of continuation must contain a detailed explanation of the reason or reasons for the missed payment.
(3) If an agreement for which a letter of continuation that meets the requirements of this subsection is filed, the agreement remains in effect and subject to cancellation for any future failure to make a payment as described in this section.
(4) A contract debtor may not file a letter of continuation with a licensee during the first six (6) months an agreement is in effect.
(5) If one (1) or more creditors included in the contract debtor’s plan agree to continue the plan based on the explanation provided under subdivision (2), the contract debtor and the licensee shall modify the agreement then in effect between the contract debtor and the licensee to reflect the changes agreed to under the letter of continuation.
(c) If a licensee or a contract debtor terminates an agreement, the licensee shall immediately return to the contract debtor any money of the contract debtor held in trust for the benefit of the contract debtor.
As added by P.L.35-2010, SEC.130. Amended by P.L.216-2013, SEC.29.