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It depends on the small claims amount limits.
But either way, they can sue you for the amount if they want and then they can freeze your bank accounts and/or garnish your wages unless you work something out with them before they sue you.
You can probably settle it for less if they don't have to spend the money on legal fees if you settle with them beforehand.
I have been serve on small claims before, but I thinking it was the individual establishments them selves. This one is different in that an attorney has contacted me via letter.
It is their attempt to try to settle
The next step would be to sue you.
I would suggest settling it
Do a payment plan with them.
I have not talked to the attorney at all. my problem is the amount is just a little less than $5000.00
You can try to settle for $3500
Just negotiate with them
Right now, you have room to negotiate, once it goes to court, you will not.
The faster they can get the money, the lower you can go on the settlement.
Even if it's in the hands of the collection agencies attorney?
Yes, same thing.
The bought the debt so now they have the legal right to enforce it or negotiate it down.
the collection agency probably paid less to get the debt because they have to collect so they have room to negotiate.
Someone droped off a leter from their office stating I need to go to the courthouse and submitt paperwork to answer something.
If you need to answer something, that means they already sued you but you can still try to settle it.
This is just a letter to look like a small claims filing. They saidI have 30 days to do what they're asking or they will apply it to the courts. Is this small claims they're talking about?
It means that they have filed a Complaint.
You can file a Complaint in both small claims and regular court.
So it doesn't necessarily mean it's small claims, it just means that they have sued you.
It doesn't matter, however, for you because being sued in either small claims or regular court, the result is the same for you.
It's usually cheaper to file in small claims because you don't really need an attorney and the fees are lower.
It also said if I do nothing I automatically lose. Does this sound familiar?
Yes, it's the same in both regular court and small claims.
If you don't show up or file an Answer, there is a default judgment entered against you and then they can collect.
I suggest contacting them and trying to settle.
If I can't pay the money what is typical as far as them getting my money?
They can garnish your wages and/or freeze your bank accounts
What does freez my bank accounts mean?
It means that they can find out where your bank accounts are and put a freeze on them and then take the money from the accounts.
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OK..So with them expecting me to submit answer you think I should still call and try to settle with the attorny?
If you can settle and do a payment plan, they will dismiss the case.
Still go to the court and file an Answer to protect yourself, they should have forms for you in court.
Thanks for your help.
Ask the clerk when you get there.
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