I have debt with a walmart credit card for $7,000. They have sent it to Encore, a collection agency. Will the collection agency sue me for this amount of debt. I don't own anything of significant value and in NC they can't garnish my wages. What will they do to try and make me pay?
2007-03-10 08:22:09 · 15 answers · asked by Anonymous in Business & Finance ➔ Credit
I don't own any property at all for them to force me to sell to settle the debt.
I also don't work, I am a student in college.
2007-03-10 08:43:43 · update #1
How old is this debt? A collection agency cannot legally collect from you if the debt is past the statute of limitation (in some state it is as little as 3years, in others as long as 15 years).
A collection agency can only sue you if they are licensed and bonded to operate in your state.
If you have not made any payments within the last six months, most likely the debt has been sold to the collection agency for pennies on the dollar. You may try to settle with them. Sometimes they will accept a fraction of the original debt.
Good Luck.
2007-03-10 09:54:42 · answer #1 · answered by Ti 7 · 0⤊ 0⤋
I've been sued for $3000 which is now a $5000 @ an 18% interest rate. I've also had other agencies threaten to sue me for larger amounts that I owed and never follow through. If I had it to do over again, I'd still take my chances. $5000 is NOTHING compared to what I owe and the other charges will be coming off my credit report soon despite the fact that they're unpaid.
Creditors cannot garnish wages in Texas, but if I ever want to buy a house, which I do, I'll have to clear the judgment first. My judgment is not on any of the three major credit report companies although it's about three years old.
2007-03-10 08:49:12 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Wal-Mart is pretty aggressive about collecting debt. Yes, they can sue you. If they get a judgment against you, it will stay on your credit report for 10 years. They can renew the judgment and keep it on there another 10 years. They could, effectively, trash your credit report forever.
You might be better off to see if you can work out a settlement with them. If you do, make sure you get any agreement you get with them in writing.
By the way, there is a bill in the North Carolina House of Representatives right now that if passed and ratified, will allow garnishment of wages in a judgment. It already passed the first reading in the house on 2/21/07. If they get the judgment after the bill passes, there goes your wages. They'll be garnishing them in a New York second.
You may want to just work out paying this bill.
2007-03-10 08:37:40 · answer #3 · answered by Faye H 6 · 0⤊ 1⤋
Yes, the collection agency will sue you in that short a period. You defaulted on the debt and it has been sold to the collection agency. Both credit card companies and collection agencies are going to court for much smaller amounts. For $7K they will be pursuing your. Don't send them any money until you have a written payment agreement. Any payment agreement has to be short term. They are not interested in small payments dragging out over years. If you can come up with a lump sum payment, you can probably settle the whole debt for about 50% or 60%.
2016-03-28 23:18:48 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Sometimes they'll pass it around to a few other collection companies first, but eventually one of the WILL come for the money. The best thing to do is to call them and try to set up some sort of payment. You're really hurting your credit by not fixing it. If you can't afford to pay it there are plenty of options you just have to make the first move.
2007-03-10 08:32:01 · answer #5 · answered by Ashley 3 · 0⤊ 0⤋
Try sending them 50 dollars a month and stay out of contact until you get a letter from an attorney. You are eligible for about a 60% settlement on this account likely. If you have informed them you are in college, they may see you as an individual with future earning potential and see the judgment as an investment.
2007-03-11 12:58:48 · answer #6 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
They will sue you, although it does take time, your best bet is to contact the collection agency and come to a agreement to pay the debt at a rate you can afford. It may save you a whole load of legal costs, plus save damage to your credit rating. Good luck
2007-03-10 08:28:46 · answer #7 · answered by judles 4 · 0⤊ 1⤋
They will sue you and get a judgement against you if they win. The judgement will stay on your record until it is paid off. Your credit rating will be in the toilet and you won't be able to get a car loan or any other type of loan for that matter. They will go after your tax refunds and could conceivably freeze your bank accounts.
2007-03-10 08:33:14 · answer #8 · answered by crazydave 7 · 1⤊ 0⤋
yes they can sue you, it is a large enough amount, they can also make you pay all court cost, lawyer fees, and interest its better to call them and work out a payment arrangement, all they need to do is get a judgment against you , and they will sue, and you will have to pay, so call them now, and work out a payment plan, they will work with you they only want there money, and yes in some states they can garnish your wages, i know from experience, i had to file bankruptcy just because several companies, had a judgment against me, and were on there way to seize my property, and sell it at auction work out a deal before they get a judgment
2007-03-10 08:29:28 · answer #9 · answered by crazylarry88 4 · 0⤊ 1⤋
They might try to go after your tax returns. But if you have no income.. There is not much that they can do other than load you up with collection notices and threats.
2007-03-10 08:26:16 · answer #10 · answered by BigWashSr 7 · 1⤊ 0⤋