Can I solve a debt problem before going to court?

Question

After my divorce I ended up with almost all the bills. Some of these ended in collection; now I received a letter stating that I will get sued. I called the agency and told them that I want to start making payments. Do I still have to go to court?

Answer 1

If you haven't been served (sued) yet, MOST creditors are more than willing to work with you. If you are already called them to begin making payments you will probobly get something in the mail regarding a payment plan. It seems like they would have told you what you needed to do or what they would be doing while you had them on the phone.

Answer 2

Yes collection agencies are willing to make payment arangements. They will try and play hardball with you but in most cases you can get them down in the amount to pay. You might want to consult a credit counsling agency as they can also help in negociating with the creditors.

If you have only received a letter saying you will be sued and have not been served yet, then there is no suit yet so no need to worry about the courts. The thing they look for is if they sue you will they be able to garnish your wages or bank accounts. If they know you work, then they will sue you for any amount of money, don't go in thinking they won't if the amount is small, I have seen people who were sued for only $150.

If you have formally been sued and have a court date it would probably be best to go to it and just let them know you set up the payment arangements.

Answer 3

Join a debt settlement company who will negotiate with the law firms and bring down your principal debt amount by around 40% to 70%. They will also give options for monthly payments as per your convenience.

You can make payments directly too but it will have hign interest rates. The debt settlement company usually negotiates for either less or no interest rates.

check out this company. They have helped me out with the unsecured debt situation. Take a wise decision immediately before the problem gets worse.

Good Luck

http://www.debtfreeafterall.com

Answer 4

Unless the amounts are large, they will not take you to court. Debts that have been sold to collection agencies are sold for pennies on the dollar (depending on what they believe their chances are). If you owe for example $1000, it is unlikely that they will sue. The court costs will exceed the amount they will receive.

Your credit is trashed anyway, and the original company that you owed has sold the debt. Sending threatening letters is standard operating procedure as they get close to writing off the debt as uncollectable.

I would concentrate on paying original creditors (those that have not sold the credit), and to hell with the collection agencies. I have no sympathy for them.

Answer 5

You still have to go to court, but if you start making payments you could ease the pain the judge lays down on you

Answer 6

You can also try and get a debt consolidation loan to make it easier on yourself. The rates are generally lower so your payments will also be lower. You can use the website below to comparison shop:

Answer 7

I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.

Answer 8

It depends on the company, most will allow you to pay, on their terms...some want you to pay it immediately. If you have the money to pay immediately then pay it, most likely you can talk them down a bit, usually about 20 to 30% of the debt by telling them you have so much, but no more.
Good Luck.

Answer 9

if you send them $5.00 and them send it back you ,they the bill is taken off due to your making an attempt