are their loans available to pay off debt that is already in collections?

Question

Has anyone been sued by a Collection agency for credit card debt? If so how do you go about handling this?

Also I live in PA.

Plain and simple I am being sued. I know there are no wage garnishments in PA, however I wanted to know what my options were? Should I contact the CA or attny representing them to negotiate? Or do you think they would be really anal and proceed with the litigation?

Answer 1

The best way to handle this is to see a consumer credit counselor. They can usually help you to consolidate your payment, lower your interest and get you out of debt. If that does not work, you may want to consider a bankruptcy. When you have been sent to collection, your credit is already as bad as a bankruptcy anyway so it would not really hurt. You can file a chapter 13 bankruptcy and repay a portion of your debt over 3-5 years if you do not qualify for a chapter 7 bankruptcy due to income or assets.

Answer 2

While it is possible for a CA to sue you for an outstanding debt, it is rare and not likely to happen. They would do that only if they had a reasonable expectation that they could collect and if the size of the debt made it worthwhile. Keep in mind CAs do not work for the original creditor, they buy debts below their orginal value and then attempt to collect the full amount form you. For example if you owed Visa $6000 and they decide they will not be able to collect from you they will sell that account to an outside company for let's say $4000 and then charge off the remainder. The CA will, in turn, come after you for the full $6000, that's how they make their money. If that CA gives up on you they will sell it again for less to another CA and they may do the same thing later on. But in very few cases will the yattempt to sue you. That won't stop them from threatening you, however.

I would not consider a loan if you are in collections, that's jyst replacing one debt with another. My advice is consult with a credit counselor who can negotiate the debt and payments on your behalf. Bankruptcy is also not a good option since the new law now makes it impossible to expunge the debt, it only re-organizes it.

Answer 3

You can get a loan anywhere you want.But you will get high interest rates.
I would suggest you to join a debt settlement company who will negotiate with collection agencies and law firms too.
They will negotiate and bring down y our principal debt by around 30% and 70% and you can make affordable monthly payments and get out of debt within 3-36 months.
There are no upfront fees and hidden costs associated with the monthly payments options.
Check out this debt settlement company who has helped me out with the unsecured credit card problem.

http://www.debtfreeafterall.com

Good Luck

Answer 4

A collection agency can not sue you for credit card debts. Your debt was bought by them on a, probably, ten cents per dollar you owe from the company. You need to check with your city's consumer protection agency and tell them about this collection agency and your predicament. They can tell and explain to you your alternatives. It will be hard for you to get other loans with your collection record already on the three credit reporting agency. Try to call your credit card company also and work with them a payment schedule. Check the internet on more ways to handle this collection agency, i.e. - who to report to, what to tell the collection agency., etc.