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They get a default judgment and don't have to argue their case. Even if a person will lose, it's best if they show up and fight it. A judge is less likely to award everything a collection agency is asking for if the person in question shows up and challenges the agency (who will be asking for attorney fees and interest fees that are astronomical). It also helps to show up as collection agencies are not looking to have a long, drawn out court battle with you - they just want their money. If you show up, they will do their best to settle with you. But, they also know that 98% of people never show up so they just get a default judgment. Once they have a judgment, they have the law on their side and can force you to give up the money through wage garnishment and other sorts of unfavorable means. If you are being sued, show up!

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Does a debt collection agency have to go to court to collect?

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.


Can a collection agency attempt to collect a debt that was settled by another collection agency as 'not valid' a year prior?

They can attempt to collect. If the debt can be proved to be invalid the information should be forwarded to the agency via certified mail. Whether or not the debt is invalid under the terms of the orignal agreement depends on the how it would be viewed in court (if it comes to that).


In California what is statute of limitations for a collection agency to sue you?

A written agreement with a company is 4 years, and a oral agreement is 2 years from the date of last payment or activity.Remember, that even though a credit card company states that they will take you to court if you do not make a payment, or put a judgment on your credit - this is not true!!The only way a creditor/collection agency will take you to court is if you owe child support or taxes. Other then that you will not go to court for this type of debt. Do not let them threaten you in any way. Make sure you settle on this debt when you have at least 50% of the balance owed saved in your savings.Get an agreed settlement in writing that day before make your final payment. Then request a letter stating that the account is now paid in full instead of settled for less. Good luck!


I have retained a law firm to sue a collection agency. Do I still have to answser the Judgment?

Yes, you cannot ignore it. However, your lawyer must respond for you. Give your lawyer the information so that a speedy response can be made on your behalf. Learn your rights against collection agencies by reading up on the FDCPA.


A legal order that a person appear in court or produce requested documents is called?

A legal order that requires a person to appear in court or produce requested documents is called a subpoena. It is a legal document issued by a court or government agency to compel an individual to provide testimony or evidence in a legal proceeding. Failure to comply with a subpoena can result in penalties or contempt of court charges.

Related Questions

What happens if a person lives out of country and is being sued by collection agency Does collection still get default judgment even if he didn't get the court apparence letter?

Yes


What do I do after a collection agency sues me?

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.


Can collection agencies take you to the court?

Absolutely they can ! The only reason a person needs to deal with a collection agency, is because they defaulted on payments to the original company. That company passed the account to a debt-recovery agency, who paid the sum YOU owe to the original company. If you simply refuse to pay the collection agency, they have the legal right to take you to court to recover the debt !


Can a collection agency take me to court for unpaid debts?

Yes, a collection agency can take you to court for unpaid debts if they are unable to collect the debt through other means.


Can a collection agency seize you assets?

No. A collection agency can apply for a court order to recover a debt which may mean seizing assets.


Can a collection agency take you to court or garnish your wages in Texas?

No


Can a collection agency suspend your license?

No, but they can take you to the court if you don't pay the debt and then court can suspend your license.


What happens if my mom cosigned on an auto loan and I file for bankruptcy?

Your mom will be responsible for the debt and if she does not pay it could affect her credit, she could be placed with a collection agency or sued in court.


How do you pay Florida traffic ticket to collection agency?

Go to the clerk of court office for the county in which you received the tickets, and they will give you a printout of the name and phone number of the collection agency that has them.


Can a business garnish another business for debt?

A business can't garnish over another business, but if they hire a commercial collection agency to collect the debt, even then the agency can't garnish. When a business debt collection service goes to Court, the commercial debt collection agency can arrange a settlement to "force" the Court to garnish over the debtor. Collection Laws varies in every state


Can a collection agency take my state tax refund in Wisconsin?

Not without a court order.


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.