- A collection agent may appear at your door to attempt collections.
- A process server is a more likely caller if you are in debt.
- Negotiate an out-of-court settlement on the debt.
BILL'S ANSWER
It is possible and legal for a collection agent to appear at your door to attempt to collect a debt. I spoke to a Bills.com reader who had a debt collector do just that. However, it is very rare for personal debt collection due to the cost. A telephone call is much more cost effective.
It is far more likely that the visitor was a process server and you were to be served a summons and complaint. A summons and complaint is just that -- a court order to appear before a judge for the reason stated in the summons. My guess is that one of your creditors became impatient and decided to sue you to collect the balance due on your account.
I recommend you attempt to resolve this debt with the creditor or the creditor's attorney before the hearing. If you obtain a fairly sizable portion of the balance, the creditor may be willing to settle the debt. For example, if you can offer 40%-60% of the outstanding balance in a lump sum payment, the creditor may be willing to forgive the remaining balance and dismiss the court case. Contact the creditor's attorney to discuss settlement of the debt and keep trying to negotiate. If you come to a dead-end there, you have the option to set up a payment plan.
If you cannot access a lump sum to settle the debt, the creditor may be willing to accept monthly payments to stop further collection activity, but will probably not dismiss the case against you. The creditor will want to obtain a judgment against you just in case you do not make your scheduled monthly payments. Again, contact the creditor's attorney to discuss possible repayment plans and ask them about a stipulated judgment payment plan.
If you do not resolve this matter, the creditor will likely obtain a judgment and proceed to attempt to collect on the judgment. Depending on the state you live in, judgment execution could include wage garnishment, bank levies, and property liens, and other actions. I encourage you to speak with an attorney licensed in your area to discuss the implications of a judgment against you, and what is the best course of action to resolve the account.
I hope this information helps you Find. Learn & Save.
Best,
Bill
Los Angeles, CA | December 28, 2010
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