Questions on debts/collections Informative - questions on collection of debt

Review by 9447 on 2004-09-01
MT. PLEASANT, MICHIGAN -- I'm rather confused (A perpetual state of mind lately) I'm hoping someone, can enlighten me. I'm reading through post, I see people asking questions in reference to being sued over a debt in court, summonded etc. Does a Finanical company not turn you over to a collection agency first? I'm perplexed.
When I was much younger, I had a debt turned over to a collections company, I paid... Interest was dropped, yet the same company, refused to work out a payment plan with me. I would like to be educated in this manner.
Comments:4 Replies - Latest reply on 2004-09-01
Posted by creditwrench on 2004-08-31:
Sounds like you are being sued by your original creditor, the company who first lent you the money. If that is the case and you have been served with a summons then you will only have a certain length of time within which you must file an answer to the court or they will get a default judgment You will need to file an answer consisting of a general denial of all allegations and then set down specific denials or admissions for that which you either admit or deny whichever the case may be. Filing an answer to a motion for summary judgment is not a simple thing if you want to win the case and get their motion defeated. You will not only have to answer their summons but then you will also have to file a brief in support of your answer and will then want to immediately follow that with a demand for admissions and interrogatories which you hope they will fail to answer in time to meet the deadlines set forth in your state's rules of civil procedure, whatever that time limit might be. It is most likley that they will answer but if they don't or don't answer in compliance with protocol for your state then you can file a motion to have your admissions deemed admitted. If the court grants your motion then you have pretty well got them beat. Although that does happen from time to time, I would not count on that happening. If they do answer then how they answer will be most important in deciding what you must do next. There usually are several things you can do if they haven't lost their case by that time.
Posted by Anonymous on 2004-08-31:
Oh, no, no, no;-) I'm sorry, I didn't write that well. I'm reading post, where people were served with a summons.......For a debt that was created, do they not turn it over to a collections agency before taking court action? I understand individuals are responsible for their debts, albeit, I don't understand, where a company would refuse to work with a party, that had intent to pay, when the indidivual can turn around and file BK. I would just think (so far, that has gotten me no where;-D) they would rather collect their monies. If a company takes one to court, and their wages are conviscated, they're not going to take the whole amount out at once, so, why not work with the person, and a payment plan, I'm very naive in this manner, I want to understand.
Posted by neatfreak20 on 2004-08-31:
i would like to know this to i am two months behind on all bills
Posted by creditwrench on 2004-09-01:
There are two worst things you can do. 1. file bankruptcy and 2 pay them off. Simple as that. Let them sue you. If you know what to do then getting sued is a piece of cakes to get rid of.

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