do you think a collection agency would take me to court over a $4300 debt I owe them?

Question

I have a debt of about $4300 dollars that I owe.I have not paid anything on it in awhile,and it was sent to a collection agency.I want to work out a deal with them, but they wont take payments.They want $3500 immediately but i dont have that kind of money what should i do?

Answer 1

Send them payments anyway. If they cash your checks then they have agreed to take a payment. If they send your checks back then they won't. It doesn't hurt to try.

Yes, they will take you to court over a $4300 debt. That is a lot of money.

Answer 2

They will except payments. However what is the debt for a car? credit card? hospital bill?. The collection agency will not take you to court. Only the entity you originally owed can sue you for the debt. The worst thing that would happen is they would garnish your wages. However if you are actually making payments a judge won't even do that. You need to know that what ever you pay to a collection agent is gravy to them they get a percentage of what you owe. So of course they want $3500, less work more profit. So don't speak to them by phone change your number and if you want to pay the debt do so by mail. A payment of 3-5% will shut them up. I would speak directly to the entity you owe they are more likely to accept payments without annoying you.

Good luck

Answer 3

A collection agency will do whatever it takes to recover the money that is owed. When you stopped making payments, without an explanation or negotiating with them for a payment plan, you sent many signals to the collection agency & to the person(s) you owe the money to. Actions speak louder than words, so now, they refuse to take payments, & you can't blame them, at this point in time.Is it possible to borrow the money from a family member? You may need to seek the advice of a lawyer & maybe he can intervene & set up a payment plan, whereas, you make the payment to the laywer. Just a thought, but I really don't know if that is possible but at this point, it's worth checking in to. In the future, if you owe money, make your payments on time & if you can't, notify the party right away. They aren't mind readers & will only think the worse if you aren't in touch with them. Good luck!!!

Answer 4

Collection agencies make their money by going after people, not by writing off bad debt. The collectors will go after you for the $2,500 balance plus added fees, interest charges, attorney costs, and a whole lot more. I recently read about a consumer who started with a $300 debt and, by the time the collection agency got them to court, it had ballooned to $3,000 with add-on fees. The damage a collection does to your credit rating lasts a long time too. The best solution is to try negotiating a settlement with the collectors. If it goes to court, it will be impossible for this to turn out well for you. Your wages could be garnished or God knows what.

Answer 5

It goes to small claims court, you do not show up, and theoretically they have a lien on anything you may sell like your house. What you do now is if you plan to sell anything major then sell it now or transfer the name. So, you were to sell your house next year, transer title if you have someone to trust. That way they do not get their cut and take out the $4300. I had the exact same problem. They use strong arm tactics. I have one from Cross Country credit card that I thought paid off. It was sent to a collection company then sent to me. I got a copy from the bank showing payments and CC has a lot of missed payments not showing up. Even though I told this to the collection ageny they did not hear this. They wanted their money, so like you, I just chill out and to h ell with them. I will get around to it one day.

Answer 6

They will take you to court and try very hard to get you to pay. Be very careful here because once they do this your creditors can then heap on other fees to jack up or debt even higher. There are debt management companies you can go to for help. Do this as quickly as possible. It's very possible to get a settlement amount for less then what you owe but you're going to need time to accumulate the money. Check on-line. there are a number of non-profit organization who can help you out.
You may still get dragged into court but at least you'll have a plan to keep this from getting worse.

Answer 7

You're not saying what state you live in. I know in Texas, if you send them 'some' money - even as little as $10, they cannot actually proceed in court with you. You have to do it regularly. Of course they want $3500 - that's their cut of the debt! Collection agencies suck. I do not pay them. When I am able to pay a back bill, I pay it to the person/company I made it with.

Answer 8

They can take you to court and get a judgement against you. I am very surprised they will not make payment arrangements with you. In some states that is against the law. They have to take money and apply it towards your debt, regardless of the amount you are paying regularly. Should they take you to court, I recommend you get it in writing that they would not take regular payments to satisfy the debt and show the judge.

Answer 9

If they cant accept payments tell them that is all they can do. If you have to go to court then so be it but you cant do anything more than you are doing now so going to court only implies you HAVE to pay. Which you already acknowledged...However, if you werent making ANY payment towards the balance that you knew you had and didnt contact them or try to set anything up, they have every right.

Answer 10

Send them a payment. If they send it back, by law you do not have to pay them anything. Bet they didn't tell you that. If they do take you to court, all you have do is show the judge your reciepts and how they refused your money. Trust me, the judge will see that as they aren't acknowledging this debt.