Dealing With Collection Agencies FAQ
What you need to know about dealing with debt collectors.
Should I deal with debt collectors or try to avoid them?
Collection agencies have been calling me all hours of the day and night. How can I get them to stop contacting me?
The collections department of a local merchant is harassing me. Can I do anything about it?
A bill collector insisted that I wire the money I owe through Western Union. Am I required to do so?
Can a collection agency add interest to my debt?
» A collection agency sued me and won. What collection measures can it now take against me?
A collection agency sued me and won. What collection measures can it now take against me?
Before obtaining a court judgment, a bill collector generally has only one way of getting paid: asking. This is done with calls and letters.
However, once the collector (or creditor) sues you and obtains a court judgment, the law allows it to take further steps to collect the debt. The collector can:
- garnish up to 25% of your net wages
- seize bank or other deposit accounts, and
- record a lien against real property -- which will have to be paid when you sell or refinance your property.
Even if you're not currently working or have no property, the judgment won't disappear. Depending on the state, court judgments can last up to 20 years. In many states, it can be renewed for years beyond that.
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