Question:
I received a "Summons" letter from the district court of our city attached with a "complaint" from the collection agency (also it's been witnessed by the clerk in our district court). We owe $624.74. Ok, obviously, this is the beginning of being sued. My husband and I know we owe this money...the bill was actually around $1,000 originally and we made a payment of $300 then 4 payments of 75 dollars. So we're not trying to fight it, but unfortunately, due to other medical circumstances, we ended up paying several more $100's and quit making payments to the collection agency which has landed us where we are. What can we do at this point?! I'm desperate. My husband and I are good people, and I'm willing to get this paid off in 30 days if need be...is it too late or do we HAVE to appear in court now?! This is so depressing and we've never been in this situation before and I just don't know what we can do...will they accept payment arrangements now? Someone please please help!!? :-(
Answers:
Contact the collection agency immediately to see if they will still accept a payment. If they do, make sure and contact the clerk of court in your county or city and make sure whether or not you still need to appear. They can tell you if the plaintiff (collection agency) has withdrawn the complaint.
If they choose to go to court, you must appear. If you do not show up in court, they will win and the court most likely will order garnishment of your wages. Garnishment can be up to 25% of your check.
However, even if you do show up for court, you will be ordered to pay whatever the court decides you must pay.
This is serious. Do not ignore it.
in most cases you can go to the collection agency and pay them and that will be the end of it - i should have added you have to do it before your court date. there may be additional changes added for the cost of bringing the law suit against you. but in the long run since you do owe this money this is the cheapest way out of a bad situation. good luck
I think, if you look in the papers, you have 20 days to respond. Contact the collection agency and see if you can pay it off in 30 days.
When you go to court , have the money with you, and the receipts of the payments already paid. You could call the collection agency but I doubt at this point it will do much good. But ,I'd try it any way.
If you received a summons, you may very well have to appear in court. I suggest that you call the attorney who represents the collection agency and try to work out a payment plan. Most agencies will work with you. Since you've already paid some of the bill, you've shown that you're a responsible person and not a deadbeat. If a judgment gets entered against you, you will probably be responsible for court costs too. Call the agency and explain the situation. Most agencies are also willing to take less than the full amount owed if you pay in a lump sum, so try that if you can come up with some cash. If they are unwilling to make payment arrangements, go to court (the court date should be on the summons). Explain your situation to the judge. I'll think he'll help you work something out with the creditor.
Consulting an attorney would be your best option but since finances are tight, don't spend money on an attorney when that money could be going to pay the debt.
If the bill is from a nonprofit organization such as a community hospital, talk to their business office directly. Based on your income level (possibly up to 3-4 times poverty level), you'll be eligible for discounts. Arrange for a plan, say for $25/month, and ask them to take you off collections.
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