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I believe I am being sued by a debt collection agency. I live in Texas. I say believe because I haven't been served yet but have received numerous letters from lawyers that they filed last week and want to represent me. I believe the court is Justice of the Peace.
My question is would it be best for me to hire a lawyer or should I go to court by myself? I more than likely do owe the money and don't mind paying it but can't do so in one lump sum.
The letters from the lawyers state they charge anywhere from $750-$1250 which is almost half of what I owe.
Can I go to court and ask for a payment plan? OR Should I contact the company to try to work something out first before going to court?
What normally happens during the court process? Will they automatically give me a judgement? I plan on gong to court but not sure how I should go about the situation.
I'm just totally stressed out.......Any help is appreciated.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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The time to ask for a payment plan is over. You had that opportunity when the debt first became overdue with the original lender, again when the loan was sold to a collection agency, and again when the attorneys attempted to contact you to pay prior to filing with the court.
Typically people ignore the calls/letters and this is the result. Once filed in court you can normally still pay to their attorneys before the court date but they are not likely to accept less than the full amount. In court, unless you can prove that you don't owe it, they can attach your bank accounts, garnish wages, or force you to sell any valuable assets to cover the debt plus court costs. For that small amount the court costs may double the amount you will have to pay.
You are much better off getting a small loan or selling something to come up with the money immediately and contacting their attorneys to offer to pay ASAP and avoid court.
I believe I am being sued by a debt collection agency.
I more than likely do owe the money and don't mind paying it but can't do so in one lump sum.
Despite your statements it appears that you do mind paying it.
And have for quite some time for it to have gotten to this point.
Quote:
My question is would it be best for me to hire a lawyer or should I go to court by myself?
Until you are actually served (and probably quite a while after) you aren't "going to Court"
Quote:
The letters from the lawyers state they charge anywhere from $750-$1250
which is almost half of what I owe.
Who do you owe it to? How much of that debt is accrued interest?
Is it all owed to one single company? Or is it a credit card with many companies?
Quote:
Originally Posted by Hemlock
You are much better off getting a small loan or selling something to come up with the money immediately and contacting their attorneys to offer to pay ASAP and avoid court.
Yes, I've known I owe on some credit cards. After being laid off I haven't gotten back to where I was with income. I found a job but took a decrease in pay to work again.Financially I am not ready to pay but it seems like I don't have a choice.
I owe $3,500 but not sure how much is interest. I believe its for one card.
When ever you receive a letter from anyone stating you own money, you are to write them a DV letter - Debt Validation, and send it via Certified Mail. The agency, which are mostly bottom feeders, have to provide proof that they are actually the ones that own the debt (via a contract between them and the original debtor) or the contact you signed with the original debtor with your signature. A copy without your signature does not count because anyone can get that. Also, them responding to you with a letter name the original debtor and how much you owe and your last payment received doesn't count either because, again, anyone can get that information. They have to show actual proof.
I know, because I am in a situation right now in which a bottom feeder collection agency passing themselves off as lawyers are saying I own original debtor money. I am not denying I owe them (original debtor), but I am disputing that I owe these bottom feeders.
I sent a DV letter and they responded with a letter name the creditor and how much is owed. NOT PROOF I owe the bottom feeders. So I sent a two page, more indept letter requesting proof from the bottom feeders that I owe THEM! I received the certified card back today.
Now, if I am correct, if they try to sue me, I can fight them because they have not provided proof I owe the bottom feeders. That is all I am asking for and that's what you should have asked for.
Any agency or "law office" has to prove they OWN the debt now or have the right to collect for the creditor. PROVE
Once they provide me with proof I will make arrangements for payments.
Look up the Fair Debt Act to see your rights and what actions you need to take to hold these evil villains at bay.
What I know now I learned the hard way. In the past I would anyone who claimed I owed them. I have also had major assistance about how to deal with these people and now I do it all myself.
I was served on Aug 1st of 2014 from credit acceptance and I co-signed with my ex but she been making payments on the car. Back in June of 2012 she told me she was going to Regions Bank to finance the car with them and she told me she did finance it and my name was removed. To make the story short she totaled the car last year between Aug - Nov of 2013. I had no knowledge of what has taken place and credit acceptance is the one who told me this and provided me with the towing service number. I called to VF and called Mississippi and Tennessee DMV and learned that she never gotten the tag for the car.
I asked Credit Acceptance about the car being finance and I was told that they do see where the car was refinance back in June of 2012 but the finance was revised on Jan 28,2014,something isn't right and it's been over 13 months ago. So why have I been served?
Check you credit report free at www.annualcreditreport.com to see if the debt shows up. Enema is right, collectors will do all kinds of shady stuff that's barely legal to get their money. Going after a judgement if you don't owe the money is definitely not legal, though.
I kind of doubt that anyone is suing you in the state of Texas. They may pretend that they are, but in reality, what are they going to do with the judgment? Texas has excellent exemptions for debtors.
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Always ask for dv - debt validation
