How Often Do Debt Collectors Take You to Court

iEditorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

Situations That May Compel Debt Collectors to Take You to Court

Fearing the worst is your experience once a debt collector contacts you regarding a debt they claim you owe. Two of the things you may wonder at this point include the following;

  1. Can debt collectors take you to court if the debt is not yours or you are not obligated to pay it?
  2. How often will debt collectors take you to court instead of trying to work things out directly?

Several factors affect the answer to each of these questions. The reason is that debt collectors purchase debt from creditors to get a fraction of the original balance. That implies that such debt collectors are willing to spend extra effort and time to collect the total amount.

So, before you know it, you may face a lawsuit depending on the collection agency, the amount you owe, and the circumstances of the debt.

We'll get to that below. Also, note that DoNotPay can offer the assistance you need if you believe a debt collector has violated debt collection laws.

When Can You Expect A Debt Collector to Sue for Non-Payment?

If a debt collector believes that they have a good chance of collecting a debt, they will not hesitate to sue for unpaid debt. That sheds light on you can expect debt collectors to take you to court.

Some of the attributes that debt collectors consider, in this case, include the statutes of limitations, whether assets with positive equity such as property are involved, state laws regarding garnishment, and the amount of debt an individual owes.

Below are details on aspects that determine how often you expect debt collectors to take you to court.

EquityAssets you have so banks can calculate based on what is reported in your credit report.
Multiple AccountsMore chances of being sued.
Transactions Visible to Your CreditorsIf your investments, savings, and checking are visible to your creditors they can sue you.
How Your Debt is ProportionedAre your loans and credit cards concentrated in one bank or are they spread out?
AccessHow often your creditors can access your assets
Size of Your Creditors’ BusinessesAre they a local or small bank? Do they have a vested interest in suing you because they are a smaller bank?

Other Situations That Compel Credit Card Firms to Sue for Non-Payment

  1. When The Balance You Owe Is Large Enough to Warrant A Lawsuit

First, understand that most credit card firms hardly sue for a small balance. Also, a creditor may be willing to forgive part of the debt you owe if it is a lot in exchange for a lump-sum payment. That is referred to as debt settlement.

Although debt settlement will hurt your credit since your credit report will indicate that you did not pay your debt in full, it may be a worthwhile option if it can help you avoid bankruptcy or a lawsuit.

  1. If You Have Been Delinquent for At Least 180 days

When this is the case, a creditor has to write off your debt as a loss. However, a creditor can still sue for repayment if you have been delinquent for over six months, and they often do.

  1. When Suing for Non-Payment Is The Only Option

If your collections agency or credit card company cannot reach you for whatever reason, the likelihood of a lawsuit will increase. Of course, facing your creditors can be frightening, but doing so is the only way to find an alternative to court.

According to the law, debt collectors should only contact you between 8 a.m. and 9 p.m. if you have not given them express permission to do otherwise. So, ensuring that you are reachable is inevitable if you want to set up a different time for debt collectors to reach you.

How to Stop Debt Collections Using DoNotPay

If you believe you have been harassed after being contacted about a debt you owe, DoNotPay can help you verify a debt collector's compliance with the law through the steps below.

  1. Search “debt collection” on DoNotPay.

  2. Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.

  3. Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to the CFPB.

And that’s it! Once you choose the course of action you want to take, DoNotPay will handle the rest. We’ll deliver your request directly to the debt collectors via first-class mail, or file your complaint automatically with the CFPB so that they’re no longer able to use unfair debt collection practices.

You can also check out our other credit products, including Credit Limit Increase and Clean Credit Report!

Why Should You Use DoNotPay to Stop Debt Collections?

Settling your debt can be daunting and debt collectors can be persistent. DoNotPay is the perfect solution because we are:

  • Easy – Opting to use DoNotPay means that keeping track of all the steps involved in stopping debt collections and filling out tedious forms will be unnecessary.
  • Successful – You will access the help you need when using DoNotPay so you can realize success.
  • Fast–Time is irrecoverable, and you can save much of it using DoNotPay.

More Areas Where DoNotPay Is Applicable

You can use DoNotPay in many other aspects of your life where you need legal help:

The information herein will prove useful if you wonder . On the other hand, stopping debt collections is possible by signing up with DoNotPay today.

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