Lost to a collection agency in court. What's next?

Question

Apparently when I signed a settlement agreement with a collection agency, I waived my rights for anything such as a lawyer, appeal..etc. Well yesterday, i checked out the court system and they're forwarding with the judgement. I have every intention of paying this since it's only one account and it's only a few grand (like 3 grand). I only had 2 grand to give up without it affecting my other bills. But apparently they will only accept full payment. So my question is, what do they start garnishing? Do they start with work wages? If so, that's fine, i'm pretty sure I'll pay it off in 2 months anyways but i just want to see what they attempt first. I just don't want to be surprised when I see my bank account balance at zero. Is it true they only hit your accounts when you don't report where you work and stuff? Answers greatly appreciated.

Yeah, the 2 grand i had specifically reserved for them is now in my safe so that it can accrue to the full amount in the next couple months. It's just a bit embarrassing for me because this is definetely a first but definetely a last for me. Anxiety mania! lol Oh and I don't want them to hit my account when i get my car payment on automatic payments out of my checking. Just a little naive as far as what the proper steps are...grrr...

Okay, update! I got access to some money and will be able to pay off the full amount. I'm so glad I didn't settle. Apparently this new law or something passed where collection agencies report settlements for less than the full amount as losses. And then the consumer ends up counting that loss as income. So pretty much, it's easier to just pay the full amount. Yeah, i'm going to pay them in full next week when I get the funds into my account and I'll finally be done with this nightmare. ADVICE FOR THOSE WHO WANT TO SKIP OUT ON PAYMENTS OR CHARGEOFF's : Pay your bills! Believe me, it's not worth the inflated interest and your credit. And regardless of what you may hear, your debt is never forgotten about.

Thanks everyone!

Answer 1

If I were in your shoes, I would not allow it to goto garnishmentof your wages. Employers frown upon those who get sued, even if they don't know the circumstances. I've known people to lose their jobs over things like that. Your boss will develop an opinion of you if he doesn't really know you - I think you know where I'm headed. I would keep my employer out of it. Best thing to do is to call the agency do an in-house supplemental with them, throw down a "cash" payment. This will show them you are serious about paying it off. Collection Agencies like their money and do not like to wait for payment. They also don't like to pay their legal staff to prep garnishment papers. So don't wait around for them to make things miserable for you. Go to them.

Answer 2

I would empty my bank accounts before the creditors find them. They will try to collect on whatever is easier for them.

Answer 3

they will probably garnish your work wages,it usually takes at least two months for that to start.