/Lawyer....In the letter, the CollectionAgency/Laywer says I must reply within 30 days to validate the debt or they can proceed with a Judgment....the debt is up to 16k (it was 5k 2003) Of course its 2007...what can they do to me? (I own a car&may name is on the deed of my house along with another person(not my spouse)
2007-02-13 00:00:40 · 6 answers · asked by strongchin1 1 in Politics & Government ➔ Law & Ethics
Can sue, get a judgement against the house making it impossible to sell or re-fi without paying off, screw up your credit, in some states garnish your wages.
Call the original lender and see if they will work with you; last resort, try and work with the C.A.
2007-02-13 00:04:17 · answer #1 · answered by wizjp 7 · 0⤊ 0⤋
That is a large balance. If it went to a collection agency sometimes they can offer you a settlement. In most cases they will not go after your car but they will put a lien on your house, which means that when you go to sell your home they will get their money first. How did it get all the way up to 16k when you only owed 5k.
2007-02-13 08:14:13 · answer #2 · answered by Richard N 1 · 0⤊ 0⤋
Any creditor can claim their moneys through due process, but very likely they will negotiate repayment before resorting to court orders.
I suggest you consider settle (original debt), you can propose 10 cents on a dollar.. it worked, should work for you as well.
You may even start making some payments ( even symbolic) , something like $10/month.. that will prove good faith of trying to pay as much as you can... of course until you come up with a settlement .
2007-02-13 08:10:17 · answer #3 · answered by LEE DA 4 · 0⤊ 0⤋
collections y2k style.......the reason it says lawyer is because they know you have assets and they know it is not to difficult to collect a judgment. be prepared to settle it for half for 2 reasons....interest calculated correctly the debt is probably correct BUT when the debt was sold you were still supposed to get a monthly bill. the same rules apply so you can eliminate interest... the highest limit for small claims court i have ever heard is seventy-five hundred. you should be able to settle this for half.
2007-02-13 09:27:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They will take what they need in order to satisfy the debt. Meaning, you could lose your car, and some of teh equity on your house. They can garnish your wages until teh debt is repaid and they can also take away your federal and state refunds if you are getting them.
There is the possibility of jail time but that would depend on the judge,
2007-02-13 08:04:20 · answer #5 · answered by Army Gal 2 · 0⤊ 1⤋
they cannot do anything except harrass the hell out of you and maybe have you checks garnished. They CANNOT take anything you own.
Of course you can try to do the right thing and mabey, PAY OFF YOUR DEBT.....loser
2007-02-13 08:10:18 · answer #6 · answered by jtaylor 3 · 0⤊ 1⤋