Can a Collection Agency Take You to Court?

Save
Next Video:
How Does Chapter 13 Bankruptcy Work?....5

A collection agency can take a debtor to court if debts remain unpaid for a certain period of time. Often, the debtor will be required to liquidate assets to pay the debt or could be subject to wage garnishments. Learn about the rights of a creditor with information from a registered financial consultant in this free video on personal finance and money management.

Part of the Video Series: Personal Finances & Money Management
Promoted By Zergnet

Comments

Video Transcript

This is Financial Adviser Patrick Munro talking about, "Can a collection agency take you to court?" If you find yourself in a situation where you have not paid a debt and you're getting calls from a collection agency; be aware of the fair-debt credit collections practices act. You have rights as a creditor the collection agency has certain guidelines that they must follow and make sure they do not call you after certain hours; anything that smacks up harassment cannot be used. However if after ceaseless promises to the collection agency and you do not deliver on your promises and a debt remains unpaid; you in fact can be taken to court by the collection agency. They have the right as a representative of the creditor to do just that. Their remedies most often include the attachment of your assets for liquidation to pay the debt or also, they can garnish you your wages so that if you're an active person at work, they file a summary and a certain portion of your dollars will go to collect the debt. Can a collection agency take you to court? We just answer that question and I'm Financial Adviser Patrick Munro.

Featured

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!