A collection agency sayss they are proceeding with litigation - what does that mean - should I accept their offer to make payment arrangements with them?
2006-10-24 13:41:09 · 10 answers · asked by joan i 1 in Business & Finance ➔ Credit
It means they are threating taking you to court,,,, do you owe the bill, or are you contesting it?
2006-10-24 13:43:52 · answer #1 · answered by avery 6 · 1⤊ 0⤋
It means that the collection agency will begin, or has begun, the process of aquiring a judgement against the party. The process of aquiring a judgement against a party involves, usually, suing the party to present their case to be ajudicated by the courts. Which court depends on the amount and nature involved, and could include small claims court, court of federal claims, municipal court, even family court.
Once the agency has acquired a jugdment from a court, they can take greater collection activities and employ the use of law enforcement. This can include wage garnishment, property seizure, asset liens, and bank levies.
As an alternative to court, the parties can agree to binding arbitration, and resolve their positions before a judge in a manner that is both mutual and legally binding.
Since all these options cost money, and the offending party is usually stuck with the legal bills on top of what they already owe, it is usually more reasonable to work together to agree to a payment plan.
2006-10-24 20:52:03 · answer #2 · answered by tax_black_belt 2 · 0⤊ 0⤋
It means they may or may not be preparing to sue you. Before they take you to court and win a judgment they can't do anymore than harass you on the phone. If they take you to court and win the judgment you are officially screwed. They can get an order to garnish your pay.
Before it gets to that, you need to take care of this bill. Do not take their word for it with regards to payment plans. Bill collectors get paid to lie routinely. Get everything in writing before you send them a penny. DO NOT GIVE THEM ACCESS TO YOUR ACCOUNTS OR POST-DATE CHECKS. If they get access to you accounts or any checks they will clean them out or cash the checks immediately. You can try to protest to a judge later. But, the first and last question the judge will ask will be do you owe the money. End of case. If 4 payments of x dollars clears the account get that in writing and hold on to that document for the rest of your life. If you barely have the funds to eat and pay the rent then send them nothing. If you have no money you are almost sue proof. They can still get a judgment and will get 25 % or zero income.
All that being said, you should try to pay you bills. If that means cutting off cable and getting another job then so be it. If that means selling that new car and buying a used clunker, then so be it.
2006-10-24 21:04:32 · answer #3 · answered by ontopofoldsmokie 6 · 1⤊ 0⤋
Pursuing litigation means 'suing you. That said if they are still offering a settlement, there is a good chance they are bluffing about suing you. If they do sue you, you will receive written notice.
2006-10-24 20:46:09 · answer #4 · answered by STEVEN F 7 · 1⤊ 0⤋
um, yeah, you should work out payments with them, because right now they're planning to take you to court if you don't. that's what "pursuing litigation" means.
2006-10-24 20:43:25 · answer #5 · answered by centerstage 3 · 1⤊ 0⤋
It means they have tagged your whereabouts, served you with a warrant, or soon will, and will try to get a judge to garnish your wages, if they are serious players.
2 things, do not get served with the warrant, do not miss any court summons dates, you'll default.
2006-10-24 20:48:16 · answer #6 · answered by The Advocate 4 · 1⤊ 0⤋
They are planning to take you to court. Initailly it may be a bluff, especially if the amount is samll. Eventually they will take you in to court, and a judge will order you to pay.
2006-10-24 20:47:19 · answer #7 · answered by Beau R 7 · 1⤊ 0⤋
It means that they are preparing to sue you. Yes, you should work out a payment schdule with them.
2006-10-24 20:52:12 · answer #8 · answered by ElOsoBravo 6 · 0⤊ 0⤋
Means you're about to get that sweet little *** SUED, baby!
2006-10-24 20:43:56 · answer #9 · answered by Anonymous · 1⤊ 0⤋
yep - they are coming after you big time
2006-10-24 20:48:25 · answer #10 · answered by gummybear1772 5 · 0⤊ 0⤋