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The debtor has no real options unless they want to consider filing bankruptcy to avoid a lawsuit. A creditor/collector does not have to adhere to any terms other than those that were outlined in the original lending agreement.

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Q: If a collection agency refuses an arrangement what should the client do?
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Can a collection agency garnish your wages?

A Collection Agency that "owns your debt" can not garnish any wages. Assume that the collection agency in their efforts to collect the debt for their client, sues the debtor and then provoke that the Court works an arrangement to pay the debt, if the arrangement includes garnishment of wages then, the Court can garnish salaries. And there is laws to garnish wages that apply to every state.


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A collection agency agreement is a legal document that outlines the terms and conditions between a business and a collection agency for the purpose of recovering outstanding debts. It typically includes details such as the payment structure, responsibilities of both parties, and the rights and obligations of the debtor. This agreement is important to protect both parties' interests and ensure a smooth and professional debt recovery process.


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