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What can you do if there is a judgment against you from a collection agency?

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2005-11-26 14:34:03
2005-11-26 14:34:03

Unless the judgment can be proved to be faulty the debtor has little choice but to try to protect as much personal and real property as is possible. All states have a set of exemptions which protects specific property from attachment or seizure for the repayment of debt(s). The preferred methods of executing a judgment are wage garnishment and bank account levy. However, judgments can also be used to place liens against real property or to initiate a forced sale of any non-exempt property belonging to the debtor. It would be in the best interest of the debtor to obtain legal advice, most attorneys offer free or minimal fee consultations. If the person is not certain what type of legal counsel is needed they should contact the state bar association or legal aid service in the area where they live.

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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.

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If you have a judgment from a collection agency and it is valid, you have to pay it to have it reversed. If it is not valid you can try to appeal it.

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No. A collection agency may not legally make any false claims. However, they may have obtained a judgement by default if you failed to answer a summons.

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If a judgment is in place the judgment holder can execute it under the provisions of the law of the debtor's state. It would not be necessary for the creditor to transfer the debt to a collection agency. That being said, a judgment is not transferrable, so if the original judgment holder did not record the judgment and take action they could not simply "pass it on" to another collector unless that collection agency was acting in their behalf and was part of the original suit.

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you "satisfy" a judgment by paying balance in full or settlement. but understand that once a judgment has been issued by a court then there can be no one else that does this.

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The defendant debtor will receive a notice of final judgment from the court where the suit was heard and a judgment was awarded. The notification may be served by an officer of the court or independent agency or it may arrive by certified mail.

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The collection agency can freeze your account, and garnish enough to satisfy the FULL amount of judgment, including court costs, attorneys fees AND interest accrued, which averages about 10%. So because the judgment verdict also has attached to it various fees, and accrues interest, the collection agency has the right to garnish the FULL CURRENT VALUE of the judgment. Your court of origin should be able to provide a full accounting of the current value of your judgment.

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If you are sued, then yes. First, the collection agency must try to collect from you. Then they can sue you if you don't pay. If they win, the judge can issue a judgment against you. And that is how they can freeze your bank account.

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Yes, a collection agency can freeze your bank account, but only under certain circumstances. A freeze can only occur after the collector obtains a judgment. They would have to go to court to get the judgment against you.

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Yes, a creditor/collection agency must obtain a writ of judgment from the civil court in the state where the debtor resides before any action can be taken against the debtor's property. The debtor will receive a final notice of judgment and be given a specified time to claim all exempted property from judgment action.

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If they obtain a judgment against you, some state's houses are protected

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== == Yes they can. Happens all the time.

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Yes, provided there is an outstanding judgment against you. Without the judgment, neither the agency nor the original creditor has any recourse for garnishment, and will not be able to obtain an order for garnishment.

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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.

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Yes, if a collection agency files a lawsuit and is awarded a judgment against the debtor. In the majority of U.S. states a judgment can be executed against bank accounts even those held jointly. The exception would be a marital account held in Tenancy By The Entirety (TBE) when only one spouse is the judgment debtor.

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If they say they have a judgment and in fact do not, they are breaking the law. You can report them to the Federal Trade Commision, which regulates collectors or to the American Collectors Association. Be sure first, thouhg, that there's not actually a judgment against you; you don't necessarily have to have been in court when it was granted. Demand to see written proof of the judgment before doing anything.

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Actually, the only way for them to do that is if they have been awarded a judgment against you, if they don't have one than they shouldn't be freezing anything. If they do have a judgment on you and have file a writ to attach you accounts than it is only for the amount they were awarded in the judgment.

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NO. Once you enter into an agreement with a collection agency no one else can collect against that debt. If you have other debts outstanding not covered in the agreement then another agency may be authorized to try and collect those debts. Collections agencies do not sue people. They can ask the courts to award a judgment or wage garnishment in order to help collect bad debt.

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Assuming the debtor does not voluntarily release the information for collection to the collector due civil process is required before such action can occur. The general steps are: The collector/creditor will file a civil suit against the debtor, win the suit (which is almost certain to happen); be awarded a judgment then execute the judgment as a levy against the judgment debtor's bank account.

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if you pay the collection agency you can get back in good credit standings , ifyou dont they can get a judgment against you, and garnish your wadges , if they do a charge off it stays on your credit for up to 10 years know and it is harder to get credit with a charge off

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Yes, if they sue and receive a judgment against the debtor then a lien can be placed against real property or a portion thereof owned by the debtor.

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They will need to sue you and get a judgment against you first. After that, yes they can do those things, including garnish your paycheck.

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The collection agency cannot reposses the vehicle unless they are the lien holder. If they are, they do not need an order of replevin to seize the vehicle unless they live in one of the few states that require such. If the collector does not hold the lien on the vehicle they will be required to file suit against the debtor, receive a judgment and execute said judgment as a forced sale or a lien of/on the judgment debtor's vehicle.

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Only if it has gone to court, served you with the complaint and gotten a judgment against you. If it has gotten the judgment, the agency must still make application through the courts to get the wage garnishment. The garnishment cannot begin until you have been given notice of the request and a chance to object to it.

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No, it is still valid and the holder of the judgment writ can enforce it in the manner allowed by the laws of the judgment debtor's state.


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