Legal 3rd Party Collections

LEGAL COLLECTION AGENCIES
These are collection agencies that are owned and operated by law firm. They are able to file law suits and obtain judgments.

TERMS:

A lawsuit is a case in a court of law involving a claim, complaint, from one party against another.

A judgement is a judicial decision affirming an obligation, such as a debt.

A garnishment is a court order for an employer/bank to withhold all or a portion of wages/deposits.

SUMMARY:

Usually if an account isnt resolve with the original creditor, it is sent to a third party agency or a lawfirm. In most cases, the law firm is the last resort. In many cases, a third party agency that purchase the debt may send it to a law firm for collection. Law firms have more legal authority to get the funds paid. It is always in your best interest to contact the law firm in order to work out option to get this repaid asap.

TIMELINE:
1. law firm will locate you, or party that knows you
2. process paperwork for law suit against you in the county in which you reside
3. hire a process server to serve papers on you or a party that knows you
4. if you fail to respond, appear the suit will be filed
5. the next step is for them to obtain a judgement against you
6. after judgement is granted, they can persue your assets

TIPS:
1.Once you recieve letter from law firm contact them.
Its too late to be afraid about the ramifications of your noncompliance.

2. Try to find out what paperwork has been filed against you at the present time

3. Find out about the balance and if interest is being accumulated.

4. Try to work out a way to get this paid

5. Be honest about your financial situation.

DONT'S

1. IGNORANCE:
Do not argue with them it will get you no where. Remember, they can garnish you without ever speaking with you. So don't allow your emotions to get into the way of taking care of business.

2. BE ACTIVELY INVOLVED:
Do not believe what any 3rd party agency would tell you about the legalities. Research your state laws in order to find out what you are up against.

3. KEEP IN COMMUNICATION:
Never cut off communication with the law firm. Regardless if you have hired a 3rd party agency such as cccs, debt management company or settlement company. The law firm has the law on their side.

4. GET ALL THE DETAILS:
If eligible for repayment plan, do not assume that legal actions will cease. Many will still obtain a judgement against you in order to secure the payment in the event you default. This is totally legal.

MISCONCEPTIONS:

If I never received the petition and summons, I am not responsible for the debt; The suit/judgement is null and void. FALSE

Anyone that resides at your last know address, that is over the age of 16 can accept a summons and petition on your behalf if they acknowledge they know you. Even though they may forget to tell you.

If your pay check/bank account is garnished the law firm is in violation for not advising you of their actions prior to the garnishment.

If the judgment is granted and the funds are not exempt you have no claim to the funds.
They are not obligated by any measure to advise you that they intend to garnish your wages or account.

They already garnished my account for a portion of the funds, the will not retry to garnish again.

Currently there is no limit that I am aware of to the number of times the garnishment can be issued. If the balance is still owed, then with the judgement in place, they can continue until pif has been accomplished.

They have to accept any settlement, arrangement in lieu of garnishment.

This is false. A settlement is merely a benefit to you, the consumer. It benefits the creditor in no way at all. No one is obligated to give the consumer a settlement.

Being enrolled in a Consumer Credit Conseling Program, Debt Settlement Program, Debt Managment Program will cease all legal collection activites.

No agency can protect you from the legal ramifications that are associated with the collection of a debt if the debt is legitimate and the agency is following legal protocol. Many people across America are fooled into paying these agencies, and some of these are free, however, they are placing their faith that these companies stops every thing. They don't.