Is It Possible For Collection Agencies To Bring You In Court?

Nearly all collection agents that are responsible in calling you to remind or get the payments of your debts are being paid by commission or performance bonuses that are based on the total amounts of debts they are able to collect. These agents will typically seek for various kinds of collection techniques or methods to make you pay off your debts. With that, they will get commissions or bonuses. However, is it possible for a collection agency to bring you to?

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Experts would say YES. There is a possibility for collection agencies to initiate a court action in opposition to you. Normally, the collection agent that represents the creditor will make a call to inform you about your debts. They will ask you to pay off your debts or they will bring you to court. Commonly, they will give you a time period for you to pay and once it is over, that is the time they will send you lots of letters that will surely threaten you.

Yet, these agents as well as the creditor will only bring you to court if they think that you have the capability to pay off your debt and if they are ineffective in forcing you settle your debt not requiring you to be in court.

Some Cases that Collection Agencies Bring You To Court

There are cases where the collection agencies will really bring you to court. The reasons for these court hearing will decide if you really have debts with the creditor or not. Nearly all cases will show that you do have a debt but the money is the main thing being argued on. It is obvious that you owe money for the creditor and they have enough proofs that you truly owe something to them. Therefore, the court hearing is just quick occasion having all the evidences presented and proving that you really have a debt with the creditor.

What Happens When You Are Proven To Have Debts?

What usually happens when it has been proven that you have debts with creditors is that the judge will sign on a piece of paper which is normally called a judgment where it is stated there that you truly owe the money.

The next probable step for the creditor to do is to submit an application to the court to implement the judgment. The result will normally be taking your bank account, other assets or they will collect your wages. However, there are cases where the creditor’s action which is freezing your bank account is useless given that your bank account will not be able to get any deposit transactions. Aside from that, people do not have any assets that the creditor may be able to confiscate. As a result, the creditor is will resort in getting your wages.

If the creditor identify you workplace, there is a higher chance that they will take hold of your wages. If they are not familiar where you go to work, they will not be able to mail any garnishment letters to your employer unless they can find out where you work.

Your Will Not Be Jailed For Having A Debt

A lot of people are worried that if they do not pay their debts, there is a good chance that you will be brought to jail. However, it is not true. Jail terms only will apply on criminal trials. Creditors are dealing with civil trials which have been described that it will pass through a judgment or a garnishment order but not to jail.

When you are brought to jail, you must be guilty of a criminal offense and charged of criminal act by the police. If you steal from a bank, you will surely go to jail. If you have done a fraud act and is proven to be true then you will be jailed. When you are not pay off your credit card debt is not considered a criminal offense.

Even if your debts will not bring you to jail, it is extremely stressful having collection agents constantly threatening you. They will try to get your wages which can surely create trouble and financial problems on your part. If you are bothered about these creditors and collection agencies that constantly threaten you that they will bring you to court, it is best for you to call a licensed trustee to verify whether a consumer proposal or bankruptcy is needed to end garnishments and you will be able to get back on track.

See Also

Bringing an End with Collection Agency Calls

Common Problems Dealing with a Collection Agency

Collection Agencies-Kung Fu System

External Links

Collectionagencyservices.net

Investopedia.com

Moneyproblems.ca