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I just got the letter from their lawyers stating that might come after me and take me to court. It is an old SBC bill for $2800.00 from back in 2003, what happens if they sue me? What does a judgement against me mean? Do I have to go to court? How bad is this really? If they get a judgement against me can they garnish my wages for that money? I am so confused.....

2006-08-24 05:03:06 · 14 answers · asked by Anonymous in Business & Finance Credit

14 answers

First off, as far as the statute of limitations to collect on the debt is 4 years no matter where you live in the states.

SBC falls under the UCC for utilities.

As far as what they can do to you if they sue depends on many things. You would have to look up the exemptions in your state. Depending on your states exemption laws, they may or may not be able to garnish wages, place liens on your home etc.

Send them a debt validation letter. Find out the amount (or even the debt) they are trying to collect is correct.

When they validate the debt and if you can, do as another poster recommended and offer them a settlement as payment in full.

If they send you a summons - answer it or they will automatically get a default judgment against you.


P.S. As for the poster that said you would sit in jail........there is no such thing as debtors prison anymore and hasn't been for a very long time.

2006-08-24 07:59:24 · answer #1 · answered by echo 7 · 0 0

It sucks when we get in these situations, I know! I've been there! A lot of times they will send those letters just to scare you, especially if you never respond. The best thing to do is contact them, and make arrangements. Even small monthly payments shows you are making some sort of effort. If you can't make some sort of agreement, meet with a credit counselor, which a lot of times you can find for free, to help you with you past due bills, especially if there is a lot of bills! Another thing nice about these counselors, is that usually the places you owe has to stop giving you past due fees, and stop interest rates on credit card! It's an awesome way to fix your credit! When I lived in the twin cities, I fell way behind on my bills, I even worked two full time jobs to try to catch up. A friend i worked with told me about the credit councelors, and I gave it a shot. Probably the best thing I ever did! Most are very resonable, but there are some that are FREE!! The one I went through was completely free. Most will put all your past due bills together, and find out what you can afford for a monthly payment, then you make one check, and they pay a portion to all the past due bills! It's awesome, and the collection agencies can't say anything about it! It helped me fix my credit, and now I can get a loan for a house, and I really straightened out my future. But, if you don't call, and you don't do anything about this letter, they might take you to court, and yes, they will garnish your wages. The judge will figure out what you can afford, and start the garnishment immediately!If you haven't contacted the credit agency, the judge will look down on you for that, too, and it will be worse.. Good luck, I hope I was helpful!!

2006-08-24 12:19:37 · answer #2 · answered by rachelsroadside 2 · 0 0

2800 phone bill?? Wow. Here is what can happen:

They can take you to court and attempt to have the judge issue a judgement in their favor for the money. If this occurs, they can garnish your wages. This is not nearly as bad as a body attachment. If they do this, you will sit in jail until a resolution is reached.

My recommendation is work it out NOW. Call the collection agency and negotiate the balance. Is the bill fair? How come you did not pay it? Being in contact with them and facing this head on is your best bet and the only way to get through this, it will take some time but in the end it's worth it. Good luck.

2006-08-24 12:06:31 · answer #3 · answered by fastcarceo25 3 · 1 0

Could be a scam. Also, there are lots of unscupulous collection agencies out there. The Boston Globe recently did a series on this.

As far as I know, they cannot garnish your wages without a court order from a judge.

Do not sign anything! Consult a lawyer. You may very well have to go to court.

BTW what is SBC?

2006-08-24 12:08:21 · answer #4 · answered by WendyD1999 5 · 0 0

There are a number of things they can do. They can garnish your wages. They can take future tax returns until it's paid off. If they have a judgement, and you come into some money, they get theirs. If you have a judgement against you, and you sell your house, they will be there with their hand out. I agree with the other person. Your best bet is to call them. Try to set up a monthly payment plan. Sometimes places like these will settle for a smaller amount if they get it all up front. (Don't forget to claim that on your taxes though--you have to report the difference between the original amount and the amount you actually paid as income.)

2006-08-24 12:10:35 · answer #5 · answered by Kiki 6 · 0 0

They will first send you a petition for you to appear in court. If you ignore it, they will send an order to court asking them to garnish your wages. It will affect your credit, so maybe you can come up with a payment plan with SBC. You will find that they can be very accommodating, after all they just want what is owed to them. If you choose to let them garnish your wages, you'll end up paying twice as much, with a daily penalty about 40 cents! Also, a wage garnishment looks really bad on your credit report.

2006-08-24 12:09:06 · answer #6 · answered by xcelix 4 · 0 0

First) when was the last time you had traansaction with SBC. Each state has statute of limitations on bills.Now if you have been using SBC recently then that will not work.
However, if you disconnected from SBC after receieving the bill then 3 years might be eligible for statute of limitations.

2006-08-24 12:13:31 · answer #7 · answered by fredhou97 1 · 0 0

Get a lawyer.... Believe me, it is worth the expense. He'll be able to tell you the best course of action and he'll handle the communications then with the collection lawyers.

He can have it thrown out in some cases, offer a smaller settlement in other cases, or work out a payment plan for you in other cases. Just remember to get your own lawyer who will then work for you.

If you do nothing and they get a judgement against you, then you owe the entire $2800 plus their lawyer costs and you don't want to be in that boat.

No, they cannot garnish your wages for unpaid debt.

2006-08-24 12:12:40 · answer #8 · answered by Andy FF1,2,CrTr,4,5,6,7,8,9,10 5 · 0 0

I work at an insurance agency where we run credit reports on clients and if you have something like that it shows as delinquency on your credit which damages your credit score. And they can garnish your wages like answer #1 says. You should definitely try to take care of it as soon as possible.

2006-08-24 12:10:21 · answer #9 · answered by andrea 2 · 0 0

Call the collection agency and talk to them. They would rather settle amicably and not go to court. Court will cost them alot of money. Make a payment plan with them. They are not bad people and will try to help you as long as you are making payments.

2006-08-24 12:10:13 · answer #10 · answered by Fleur de Lis 7 · 0 0

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