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If a collection agency refuses to settle medical debt and you can't pay what is the worst they can do?

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βˆ™ 2006-07-28 21:16:28

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The collection agency can take you to court and garnish your wages. You should attempt to contact the original creditor and make negotiation with them if possible. If this is not possible, attempt to set up a reasonable payment plan with the collection agency. Having wages garnished sets back your life until the debt is paid off. * Collection agencies have no legal authority. If they are a third party collector that has purchased the account they can refer the account to an attorney who can file a lawsuit in the appropriate court in the debtor's state of residency. If they are working for the original creditor the original creditor must be the one to implement a lawsuit. If the plaintiff wins (they always do) a judgment will be entered against the debtor. Judgments can be executed according to the laws of the state where they are issued. Generally a judgment can be used as a wage garnishment or bank account levy or seizure and sale of non exempt property or a lien against real property. In most states it is possible to execute judgments against jointly owned property even that which is considered marital. Judgments are granted from 5-20 years and most are renewable and can be executed at any time the judgment creditor so chooses and will continue to incur interest until they are paid or settled.

2006-07-28 21:16:28
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Once a collection agency sues a person they may have to get an attorney and go to court to settle this. The agency wants you to pay the money you owe them however they can get you to do it.

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The best thing you can do is put a little time between when the collection agency first contacted you and when you plan to pay. Don't do anything fast. Slow it down. They will get tired of calling and be willing to settle after 30 to 60 days have passed.

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