Angela Martin’s Legal Blog

I have received a number of calls from people who are concerned about just how far a collector can go to get money from them.  Often people are scared because the debt collector is making a number of threats or implications during the phone call claiming they will take your car, home and garnish your wages.

 The most important thing to let you know is that it is illegal for them to threaten you over the phone in order to scare you into paying.  If you receive these types of phone calls you should immediately demand that they stop calling you (in writing and over the phone) and report the threats to the appropriate consumer protection agency.

After getting past the threats, you should know how collection proceedings work.  First, you have the debt that you have incurred.  If you have not paid, you will often receive a letter and then the phone calls to collect from you.  In either case, further collection proceedings require the filing of lawsuit against you.  It is only after the lawsuit has been filed, tried (or if you fail to answer a default judgment is entered) that a creditor is able to either:

• 1. place a lien on property you own
• 2. seek a wage garnishment
• 3. levy accounts
• 4. appoint a receiver for a business (in cases)

 Each of these steps require that the creditor have a valid judgment before any of these steps can be taken.  In each of these scenerios you should receive some form of notice - not the Sheriff just magically appearing to take your stuff.

The notices may only be letters sent to your last known address from another attorney or the court, or sent directly to your employer.  So if you know that a creditor is attempting to collect a debt, watch the mail - don’t just throw it in the trash.  Often creditors are willing to work out something even after a judgment has been entered.