Will a Collection Agency bring me to Court? Is there a possibility that I will go to Jail?

Nearly all collection agents are paid with a commission or a performance bonus depending on the total amount of debts they have gathered. They will regularly attempt many different collection tactics to let you to pay off your debts. Thus, they can be paid of the commission or bonus. However, is a collection agency capable of bringing you in court?

The response would be yes. It is probable for a collection agency to initiate a court action in opposition to you. Normally, the collection agent in place of your creditor will first call you and mail you several intimidating letters. Yet, they will only bring you to court if they think you have the capacity to pay your debt, and they have been fruitless in gathering any payment from you not bringing you to court.

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When A Collection Agency brings You to Court

In instance where collection agency does bring you to court, the reason of the court hearing will be to decide whether or not you are in debt with the creditor. Majority of the cases, if the information that you do owe the money is not being disputed, you are knowledgeable that you owe some money from the creditor. The creditor will hold on evidence that you owe it. Thus, the court hearing is a very fast occurrence. The judge will sign a piece of paper which is known as a judgment, stating that you are in debt with the money.

The next achievable step for the creditor is to submit an application to the court to implement the judgment, which normally shows that they apply to take hold of your bank account or other assets, or garnishee your wages. However, in many cases, there is no point in a creditor holding your bank account. Given that once your bank account is stationary you will by no means deposit any amount of money into that account. Additionally, nearly all people do not hold any assets that can be taken possession of. As a result, the creditor is will probably try to garnishee your wages.

Garnishing your Salary

Even if they found out where you work, garnisheeing is doable. If they do not have the idea where you work, they cannot mail any garnishment note to your employer until they find out where you work. A lot of people get troubled that if they do not pay off their debts, they will be going to jail. However, it is not the case. Jail terms are the outcome of criminal proceedings. Creditors are involved only in a civil trial, which is shown that it can result to a judgment or a garnishment order, except for being jailed.

If you go to jail, you must be found guilty of a criminal offence, and you must be guilty of a crime. If you steal from a bank, you will surely go to jail. If you have committed a fraud and are guilty of it, you can be put to jail. Not paying off your credit card bills is not considered as a criminal offense.

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