i have been sued by a collections attorney?

6 ⤊

i have been sued by a collections attorney?

FOUR years ago i ran my SBC phone bill up to $720. i was young and naive.I didnt had money to pay so they disconnected the service.Last week i received certified letter from court being sued by ASSET ACCEPTANCE COLLECTION COMPANY for that amount and they were collecting for SBC.The court gave me thirty days to respond if the lawsuit is true or not otherwise they will decide in ASSETS favor.I am confused and dont have any money to pay i go to school fulltime.My two weeks paycheck is $800 and live on my own and pay tuition myself and health insurance.I can barely afford to get by to the next paycheck.Does anybody know what will happen to me if they win the lawsuit?I thought they will just put it in my record but they wont come after my wages,is that likely to happen?I am now trying to rebuild my credit and be a good citizen but these guys are coming after me,any ideas help?

2007-05-12 00:21:44 · 13 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics

13 answers

If they have sent you a letter, it means they are very serious about recovering it, now that you have a job.

The best solution I see is for you to contact them and make arrangements to pay. You can pay like $50 every week or every two weeks. They will generally accept that. Sooner or later you have to pay, if you take the initiative they will respond positively. But if you ignore then lawsuit is a real possibility. The very reason that they want their money back is they have filed a lawsuit. They can garnish your salary (upto 25% depending on the amount and age of the debt,state you reside). Believe me you are vulnerable, you have a job. Chances of them winning is high. They will also charge disconnection fees.After that they might have you pay the attorney fees, court fees etc. They will also charge interest for 4 years and the time the case is in court. Eventually you will end up paying them. The best solution is to contact them and make arrangements to pay.

Since the debt is old, I assume it is a "Purchased Debt" (A debt bought by a collection agency for a very small value) you may request for settlement. They might accept that (Purchased Debts cannot be negotiated with original creditor). If not settlement, they will definitely accept payment plans. The only solution is to cut down your other expenses and pay them weekly or every two weeks (depends on what they accept)

2007-05-13 08:17:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋

1) Make sure that its a legitimate lawsuit. Look at the top of the document. It will indicate the court in which it has been filed, and probably a docket number. This is an example:
IN THE CIRCUIT COURT OF PODUNK COUNT, STATE

Asset Acceptance Corp. Case(or docket) No: XXXXX
vs
Your name
 ----------------------------------------------------------------------------------- Now... that being said.. the title of the document should read summons, or perhaps Summons and Complaint (or petition). (note: The above terms may vary considerably from state to state). Call up the clerk of the court that issued the document, and find out if its legit. Its possible that since it came directly from the collection company, its an attempt to scare you into paying.. and if so, its highly illegal. Only an attorney can file a collections lawsuit, and Asset Acceptance is not licensed to practice law. What can happen to you if its legit and they obtain a judgment against you varies considerably from state to state. I strongly suggest that you have an attorney look at the document and advise you on how to proceed. You may be able to get a consultation with an attorney for a half hour or so for $50 to 100. Call up a general practice attorney in your area and see that he/she says. PLEASE don't go and try and just get some free advice. An attorney's knowledge and experience are all we have to sell. For a referral to an attorney, contact your local or state bar association. 2007-05-12 06:34:41 · <a href="#answer20070512063441">answer #2</a> · answered by Phil R 5 · 0⤊ 0⤋ </div> <div id="answer20070512003108" class='answer' >  That does seem a little beyond the pale. You don't mention what state you live in. In Texas, the only things that can be garnished for are child support, IRS and student loans. This particular collection agency is brutal. Are you SURE the letter came from the court? Not to trivialize your problem in any way, but there is no debtor's prison. If you're able to make payments, you should do so, but do try to make them with the original creditor. The most important thing to remember when it comes to a collection agency is this: These agents get a percentage of every dollar they wring out of people. Some of them will go to any means necessary. Quite often, these means are illegal. It's up to you to do your research. Check out the fair credit laws for your state. When in doubt, contact a reputable credit counseling agency in your area. They'll do a free debt consultation. They'll also have answers for you regarding particular creditors. Sandy 2007-05-12 00:31:08 · <a href="#answer20070512003108">answer #3</a> · answered by Sandy M 5 · 0⤊ 2⤋ </div> <div id="answer20070512003240" class='answer' >  You sure it's a real court. Did it give a docket number. Did it give a divison and room number. Is there an attorney name at the top corner of the document. The document is signed by a judge or a clerk of the judge. Did you sign to receive it. The most they can do, if this is real (and it might be a scare tactic), is attach up to 25% of your wages until the total amount is paid off. $800 is generally a Small Claims issue not a major court issue. It costs $125 just to file in a real court. As I recall statutory tort law, they can't do much if they don't contact you or you don't contact them after one contigious year. 2007-05-12 00:32:40 · <a href="#answer20070512003240">answer #4</a> · answered by Anonymous · 0⤊ 1⤋ </div> <div id="answer20070512005454" class='answer' >  either... respond to the lawsuit and SBC will prove their case and you'll have to pay them $720 or... don't respond to the lawsuit and the court will rule in default and you'll have to pay them $720 I'm sure you've learned something from your experience and you're trying to manage your money better and everything... but you do in fact owe them $720. You can voluntarily give it to them or they will find a way to take it (from your wages or liens on property...). If you talk to SBC maybe you can set up a payment plan since $720 leaves you with only $80 to live on for 2 weeks... but that's if SBC wants to be nice. You owe them the money and you've owed it to them for 4 years. I'm guessing they aren't going to be very willing to be nice... I'd be surprised if they didn't want interest on the money too. 2007-05-12 00:54:54 · <a href="#answer20070512005454">answer #5</a> · answered by kmnmiamisax 7 · 2⤊ 0⤋ </div> <div id="answer20070512003611" class='answer' >  Immediately explain your problems and suggest a comfortable payment schedule in writing to the collection company before this matter goes to court. Otherwise the court may authorize garnishment of your wages. 2007-05-12 00:36:11 · <a href="#answer20070512003611">answer #6</a> · answered by Bruce 2 · 1⤊ 0⤋ </div> <div id="answer20070512002635" class='answer' >  The phone bill already shows up on your credit report as a charge-off or collection account. Call up the phone co and see what the status of your bill is. It they have turned it over to an outside collection agency, which is what this sounds like, they will not be able to do anything and you will have to deal with the collection agency. Then try calling the collection agency and explain your situation, maybe they will work a deal. The absolute worse thing to do is to do nothing. 2007-05-12 00:26:35 · <a href="#answer20070512002635">answer #7</a> · answered by Anonymous · 1⤊ 1⤋ </div> <div id="answer20160521022257" class='answer' >  The collection agency has every right to hound you for money. Unless the cease letter was written from an attorney, your letter won't do any good. If your credit card was charged off, you still have to pay unless you file bankruptcy. 2016-05-21 02:22:57 · <a href="#answer20160521022257">answer #8</a> · answered by ? 3 · 0⤊ 0⤋ </div> <div id="answer20070512014107" class='answer' >  If they win the case you have to pay them back by setting up a payment plan and follow through with it. cuz if you don't they have rights to a certian percentage of your wages and can have that garnisherd from your wages they can go after your assetts to!! there are some exemption i am going through this myself and they placed a judgement on me but i cant get this collection agency to send me proof of my last payment i made CUZ THERE IS NOT ONE 2007-05-12 01:41:07 · <a href="#answer20070512014107">answer #9</a> · answered by Anonymous · 0⤊ 0⤋ </div> <div id="answer20070512003132" class='answer' >  Pay up. Respond to them and try to work out a payment plan ... even 10 or 20 a month. You merely have to respond and make an honest effort to pay your bill. 2007-05-12 00:31:32 · <a href="#answer20070512003132">answer #10</a> · answered by burlingtony 2 · 2⤊ 0⤋ </div> </div> </article> </section> <div style="background:#888;padding:8px;margin-top:16px;"> fedest.com, questions and answers </div> </body> </html>