The creditor could get a judgment against you and garnish up to 25% of your wages if you still don't pay. However, the likelihood of a credit card debt going to court is extremely unlikely, especially if the amount owed is small and the creditor is out of state.
What will most likely happen is the debt collection agency will try to coerce you into paying through intimidation and threats through letters and phone calls. They will threaten to take "further collection action" if you don't pay. "Further collection action" usually means sending another letter or making more phone calls. If you don't pay or respond to them after a certain period of time, they will refer it back to the original creditor who will decide whether to sue or sell it to another collection agency. They most likely will sell it to another collection agency, and the phone calls and letters will start again. This could happen months, or even YEARS later.
If the debt is older than your state's statute of limitations, the creditor cannot take any legal action against you. If they try to sue, you have an absolute defense in court.
2007-12-26 14:13:12
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answer #1
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answered by ? 4
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Collections can become serious or they can become a nuisance. They can turn into a judgement, or they can just sit there for years. They can be bought and sold and one day you are contacted and the new collection people are trying to collect, only they are more agressive than the old collection types. Once the collection hits your report, your scores will drop, and they will not go up if you should pay the collecion agency the full amount.
In other words, in the credit world, an unpaid collection or a paid collection at the end of the day is still a collection. You don't get any points for seeing the error of your ways. I suggest that you contact the creditor, bypass the collection agency completely, do not be combative and explain you weren't aware of the situation and that you only want to make things right. By doing this the creditor will not have to pay a percentage of what is collected to the collection agency. It will not do any harm to ask the creditor to remove it from your report, they might do it, and that will be as good as if it was never there.
2007-12-26 14:14:01
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answer #2
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answered by Anonymous
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I would not show to much concern, collection agency are high risk scums they buy bad debt 3-5 cents out of every dollar so they are gaining huge profits. I would just avoid them, send a cease and desist letter to avoid further contact over the phone. Do not settle out with the debt because you will have to pay at the end of the year as earned income.
http://www.credit-collection-agency.com
2007-12-26 14:41:27
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answer #3
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answered by hmmmmmm 1
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If you don't choose to pay that debt, it could very possibly show up on your credit report, and collections are a NEGATIVE on your credit report. It's a whole lot easier to pay the debt while it's in collections, than to pay it later, after it's shown up on your report......because once it's on your report, it could very well stay there for 7-10 years....regardless of the amount.
My suggestion is to pay the debt in full, or make arrangements to pay it, and stick to the arrangements. More harm will be done if you choose to ignore it the debt...the longer you ignore it, don't pay or don't make arrangements to pay, the better the chance is that it will show up on your credit report....and once that's happened, your credit score will DROP!!!!!
Whether you pay in full or make arrangements, ask for a receipt from your debtor....you may have to use that if you ask for credit....even after the debt is paid.
Pay the bill....hope that helps!
2007-12-26 12:19:45
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answer #4
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answered by brewctred 2
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You could be sued in small claims court where you would lose and a judgment would be issued against you. That judgment would allow the creditor to garnish your wages.
....or they might just keep dunning you until you pay. Of course that debt will show on your credit report. That could affect your ability to buy most anything on credit. Employers can also check you credit history when you apply for work.
2007-12-26 12:14:42
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answer #5
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answered by Anonymous
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You may be reported to the credit bureaus. Derogatory trade lines remain in your credit file for 7 years.
The bill collector could send you collection letters or call you in order to attempt to collect the debt.
If that does not work, the bill collector could also sue you in civil court. If he wins, he could garnish your wages. He could also put liens on your bank accounts and other assets.
2007-12-26 13:54:57
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answer #6
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answered by Ti 7
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being in the mortgage industry for many years, I can only say that several things can happen:
1. it could go into collections and sit there for seven years; at which time it would have to be removed from your credit completely (on the 7 year anniversary date).
2. it could sit there for many years and then sold to another collection agency; at which time the seven year clock would start ticking once again. this could keep rolling to new collections agencies for eternity or not. it is luck of the draw really.
3. they could go for a judgment against you. you really do not want this to happen. if you receive notice to a hearing for a judgment, then you want to go to court. if you do not show up, the judgment will automatically be granted. **judgments do not have a seven year expiration date.**judgments could be granted to accumulate interest until they are paid.
2007-12-26 13:55:55
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answer #7
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answered by godsgrace1976 1
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Unfortunnally You got no choice but to pay right now ,
Coz if you delayed , it will be on your credit report soon ,
i dont know !!! listen click on my picture to see my profile &
at the end of it a blog about all credit issues with people
just like you and me may be you will find some thing new ,
I am terrible sorry Hope this help you a little bit .
2007-12-26 12:26:01
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answer #8
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answered by S a l m a 2
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you get alot of mail from the collection agency it gains interest but thats about it dont go crazy worrying about it thats the worst part just wait till you have the money and set up a monthly payment plan if they ever want to see their money they will do it
2007-12-26 12:16:41
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answer #9
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answered by Anonymous
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If it is a legitimate debt, you can be sued, they can get a judgment against you, and garnish your wages. If it is not a legitimate debt, contact the original creditor and tell them.
2007-12-26 15:59:42
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answer #10
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answered by Bette 5
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