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Teacher Editor
Teacher Editor, Instructor
Category: Legal
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If I owe money to a bank, dont pay and it goes to collection,

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If I owe money to a bank, don't pay and it goes to collection, don't pay them and it go's to their attorny, does it still get settled as small claims. The amount is less than $5000.00 and I live in Oregon.

Linda Roch :

Hello and welcome! If you have any other questions, please let me know or please click Accept.

Linda Roch :

It depends on the small claims amount limits.

Linda Roch :

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.

Linda Roch :

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.

Customer:

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.

Linda Roch :

It is their attempt to try to settle

Linda Roch :

The next step would be to sue you.

Linda Roch :

I would suggest settling it

Linda Roch :

Do a payment plan with them.

Customer:

I have not talked to the attorney at all. my problem is the amount is just a little less than $5000.00

Linda Roch :

You can try to settle for $3500

Linda Roch :

Just negotiate with them

Linda Roch :

Right now, you have room to negotiate, once it goes to court, you will not.

Linda Roch :

The faster they can get the money, the lower you can go on the settlement.

Customer:

Even if it's in the hands of the collection agencies attorney?

Linda Roch :

Yes, same thing.

Linda Roch :

The bought the debt so now they have the legal right to enforce it or negotiate it down.

Linda Roch :

the collection agency probably paid less to get the debt because they have to collect so they have room to negotiate.

Customer:

Someone droped off a leter from their office stating I need to go to the courthouse and submitt paperwork to answer something.

Linda Roch :

If you need to answer something, that means they already sued you but you can still try to settle it.

Customer:

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?

Linda Roch :

It means that they have filed a Complaint.

Linda Roch :

You can file a Complaint in both small claims and regular court.

Linda Roch :

So it doesn't necessarily mean it's small claims, it just means that they have sued you.

Linda Roch :

It doesn't matter, however, for you because being sued in either small claims or regular court, the result is the same for you.

Linda Roch :

It's usually cheaper to file in small claims because you don't really need an attorney and the fees are lower.

Customer:

It also said if I do nothing I automatically lose. Does this sound familiar?

Linda Roch :

Yes, it's the same in both regular court and small claims.

Linda Roch :

If you don't show up or file an Answer, there is a default judgment entered against you and then they can collect.

Linda Roch :

I suggest contacting them and trying to settle.

Customer:

If I can't pay the money what is typical as far as them getting my money?

Linda Roch :

They can garnish your wages and/or freeze your bank accounts

Customer:

What does freez my bank accounts mean?

Linda Roch :

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.

Linda Roch :

Please press Accept if this has helped.

Customer:

OK..So with them expecting me to submit answer you think I should still call and try to settle with the attorny?

Linda Roch :

Yes

Linda Roch :

If you can settle and do a payment plan, they will dismiss the case.

Customer:

OK....

Linda Roch :

Still go to the court and file an Answer to protect yourself, they should have forms for you in court.

Customer:

Thanks for your help.

Linda Roch :

Ask the clerk when you get there.

Linda Roch :

You're welcome. Please press Accept.

Teacher Editor and 2 other Legal Specialists are ready to help you
Customer: replied 5 years ago.
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