Can a Bill Collecting Company Issue a Summons?
A summons is the notification of a lawsuit. In debt matters, a summons is a final attempt to force a debtor to pay an unpaid debt. Debt collection agencies can file lawsuits at any time, but usually it takes months or even more than a year before bill collectors resort to such extreme tactics. A bill collecting company is usually a debt collection agency. Creditors often sell or assign delinquent accounts to debt collectors. A debt collector initiates a summons by filing a lawsuit, but a civil court actually issues the summons. The court arranges for delivery by a courier or sends it by certified mail.
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Paperwork
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A debtor in a lawsuit receives a paper document called a summons and complaint. The summons provides important information for the debtor, including how to respond to the lawsuit. The complaint is the lawsuit itself. The summons may instruct the debtor to appear before a judge at a certain time and date to answer the lawsuit, or the summons may indicate the debtor should respond to the lawsuit in writing by a certain date.
Importance
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A court summons is an extremely serious matter. The debtor must respond to the summons or automatically lose in court. People who ignore court summonses receive default judgments ordering them to pay the full amount listed in the lawsuit. If the debtor does not pay, the party filing suit can request garnishment of the debtor’s bank account or wages.
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Options
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A debt collector gains considerable leverage after the summons. A debt collector who can prove that the debtor owes the debt is virtually assured of winning in court if the debt is collectible under state statute of limitation laws. That's why debtors should settle before a court hearing. The debt collector may offer an installment plan if the debtor cannot afford a lump-sum settlement.
Advice
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A reputable consumer affairs attorney can negotiate a settlement on the debtor’s behalf or file various legal motions to delay the case. Civil lawsuits can drag on for months, giving a debtor time to save for a settlement. That’s preferable to losing the case and receiving a judgment and garnishment. Judgments remain on credit reports for seven years, making it difficult to obtain new credit at reasonable rates.
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