Anser by Daveygater: Depending on what state / territory you reside in, the lack of income won't matter. Some collection agencies will watch for you to start receiving income again, some will not delay getting a civil court judgment / award then search for seizable assets and watch for your income to start again (if they could not seize enough assets to satisfy the award).
A collection agency cannot call your employer to garish your wages. In order for your wages to be garnished, you must be sued by the collection agency. And the agency must win a judgment against you.
No a collection aggency cannot garnish a pay cheque
Unless you have a specific repayment plan that the collection agency agreed to, there is no legal reason that cannot sue the cosigner.
They can send you a letter, but they cannot sue you.
Once a debt is handed over to a collection agency, it's typically out of the original creditor's hands. However, it may be possible to negotiate with the creditor to recall the debt from the collection agency, but this process can be challenging and may require convincing the creditor of your ability to repay the debt directly. It's advisable to communicate directly with both the creditor and the collection agency to explore your options and find a resolution.
In most cases, a collection agency cannot take your personal possessions. Depending on the amount, they may be able to garnish your wages which is what would happen first.
You cannot be arrested for failing to pay a debt. The collection could sue you, but the judgment would be nearly impossible to enforce. Your disability benefits cannot be taken or garnished to enforce the judgment. The most they could do is put the judgment on your credit rating, put a lien on your property and perhaps have some of your nonexempt property taken and sold to pay toward the judgment.
Yes, a collection agency can make a house visit or visit you at work if they cannot reach you by phone and their letters are going unanswered. Personal visits are one of the most effective ways to get paid.
Paying the collection agency will clear up your account much quicker and some creditors will return the payment to you if you send it directly to them. Most creditors sign a contract with a collection agency and cannot discuss the debt with the debtor once they place it with the agency, they must refer all correspondence, communications and payments to the agency for the life of that contract.
A collection agency can call anyone. The Fair Debt Collection Practices Act indicates that they cannot identify themselves as a collection agency to anyone other than the debtor. Other activities that restrict them include: Sending a postcard or an envelope with a designation that indicates it is from a collection agency, contacting the debtor outside of legal accepted hours of business, publish a list of debtors, or advertise a debt. See the following website for the text of the Fair Debt Collection Act: http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
Absolutely not. A collection agency can only demand payment of you. If you think the collection agency with which you're dealing is acting unethically, you should check out the Fair Debt Collection Act. You can file a formal complaint and the agency can be fined. * Legally they cannot "demand" anything, they can request, they can debate, they can negotiate, assuming the debtor wants to spend the time engaging in such, but they cannot "demand". The debtor always has the option of hanging up the phone and refusing to communicate with a collector or creditor, as there is no U.S. law that requires the debtor to do accept nor particpate in collection calls.
Collection agencies do not and cannot freeze accounts in any state. Only the courts can do this. However, if a lender has a valid judgment against you for a bad debt, any collection agency they hire to recover it can serve your bank with an order of garnishee and attach the assets in the accounts you have there.