Just another scare tactic?

[so-beyond-broke]

Hello Everyone:


When I came home from work, there was a message left from some real arrogant man addressing me by my first name saying that he was representing some law firm and that I had 20 mins to return his call or the attorneys were going to decide what to do with my case regardless if I called them back or not. The man did not leave his name, only an 866 number and I never received any correspondence from this law firm. I really don't know whether to perceive this as a threat or scare tactic or that I may be sued shortly. Most of my debts have been charged off and sent to so many different collection agencies. I plan on filing bk next month anyway.

What's the process when you get sued? The creditor can serve you with a summons to appear in court, however I also heard that this date can actually be tied up particularly if you are not available. Can you be garnished before a judgement is made? Should I empty out my bank acct just in case? If I file my bk before getting sued will this help? What happens if I get sued before filing bk? Can the bk stop it? Please help me with this question.

Thanks,

sbb

[KevinR]

I'm kinda in the same boat.

They can't garnish wages, attach liens, etc... until they get a judgement. Probably takes a while after that even. But you want to avoid letting it go that far.

When you file BK it freezes all collection activity. They can't call you, sue you, anything. If a lawsuit has been filed it's automatically dismissed. I think so anyway. At least it'll be stopped until the BK is done with. If the debt is discharged the lawsuit is killed.

I wouldn't "empty out" your bank account, that looks suspicious. Just don't put any more money in it and keep paying normal expenses as usual. Ideally when you file you won't have much of anything in the bank.

As for your phone call, sounds like the typical BS you get with bottom feeding collection agencies. I might call them just to find out what debt they're talking about. But don't let them intimidate you, if you're filing BK soon anyway they can't do a damn thing to you.

[so-beyond-broke]

KevinR

Only my meager payroll check and social security benefits for a child are direct deposited into the acct around the same time each month 1st & 16th of the month - Nothing suspicious. All monies being withdrawn are used to pay bills and I have receipts. I also use my debit card so that it indicates on my bank statement where the $$ went - mostly food. I just have to beat the creditors to the punch!!

sbb

I'm kinda in the same boat.

They can't garnish wages, attach liens, etc... until they get a judgement. Probably takes a while after that even. But you want to avoid letting it go that far.

When you file BK it freezes all collection activity. They can't call you, sue you, anything. If a lawsuit has been filed it's automatically dismissed. I think so anyway. At least it'll be stopped until the BK is done with. If the debt is discharged the lawsuit is killed.

I wouldn't "empty out" your bank account, that looks suspicious. Just don't put any more money in it and keep paying normal expenses as usual. Ideally when you file you won't have much of anything in the bank.

[SinkingFast]

I was getting daily calls from one of our CC's. It was an automated thing. First time I answered, realized what it was and hung up. After that, when I saw the phone number, I just didn't answer the phone.

Then, one day, the dang thing left a voicemail message. I must call by 3 pm the next day! So I call. It's an automated system trying to get me to promise to pay $X by certain date. I hung up.

We played this game of tag for a couple of weeks. I just ignored them. Talking to Creditors has been getting us no where. Then one day, I get a call from a different phone number. Tag. I'm it! They caught me.

It's a live human being wanting money. I explained why we can't pay. The rep was very nice about the whole thing and that was it.

Could be a scare tactic. Just like my voicemail. "You must call by 3 pm tomorrow." Nothing more to it than, "We want money." AGAIN.

You could try going to a pay phone and calling the number. See what you get. That way, if they are tracking incoming phone numbers, they won't get your phone number. Maybe you'll find out what it's all about, but they won't know it's you.

It's a thought.

[KevinR]

You could try going to a pay phone and calling the number. See what you get. That way, if they are tracking incoming phone numbers, they won't get your phone number. Maybe you'll find out what it's all about, but they won't know it's you.

It's a thought.

Good idea. They do track incoming numbers. One of my CC's managed to get my cell phone number that way. Didn't bother me much on it, but I only ever called them once with that phone a long time ago.

[fellowpoorman]

Its just another tactic to get you to talk to them, so what if they sue , as soon as you file that goes away. I 've heard of collection agencies posing or insinuating they are lawyers, they did all kinds of stuff to get me on the phone, ignore it and get going with filing, in alot of ways they are using scare tactics as a last resort, do research and learn your rights and what they can and cannot do legally, record the calls, this may or may not be legal in your state but if it is not, all you havae to do is ask them for permission yto record , if they say no , either hang up or just not give any info, which you should not do anyway, if they say yes, then they better obide by FDCPA rules or you got them, chances are the will hang up. File. good luck PS a good site to visit is debtcolidation, or punch in Academy collection service and scroll to debt consildation web address , you'll see what they are doing to people its unreal.

[fellowpoorman]

Should have done another PS, biut with collection agents we must remember that these people are pros, they know how to push people around, you have to realize that, they are not sympathetic, they hear sob stories all day, and they will tell you anything with the idea of breaking you down even if this takes several calls, they will act as a caring friend or threaten you with "legal action" as opposed to what? ":illegal action", they will say "see you in court" and then hang up , then in a few days call you back, Stay cool its all a bluff, they will call with numbers that come up, unknkown caller, Private number, etc. Also they must get you to pay ASAP because they are under pressure to do so, thats how they make thir $, the longer it takes them to collect a debt the more you get educated, they may recieve bonuses or even fines for not getting the payment, theres a whole slew of things that go on, they work on commisions. Stay cool , keep your composure and do some homework as to how to deal with them.

[so-beyond-broke]

Relentless creditors

This is a follow-up from an earlier post regarding scare tactics creditors use to get $$. I think its the same arrogant collection agency that's harrassing me - the Law Offices of Cohen & Slamowitz LLP. This law firm took over a debt from a previous CA - Worldwide Asset Purchasing who had taken over from my original creditor - Direct Merchants Bank. This is what they mailed me today:

Because of your failure to satisfy your outstanding obligation on the above referenced matter, our client has authorized us to commence a lawsuit against you. In addition to the principal balance due, our client will be seeking court costs, plus interest from February 6, 2006, plus atty's fees of $1,162.49.

Unless you contact us to make arrangements to pay your debt, collection efforts will continue. We urge you to call us at the telephone number set forth above to settle your account.

So now as of March 28, 2006 - the date of this letter they have added atty's fees and inflated the debt to $7,060.92. Wow I remember i owed the original creditor Direct Merchants Bank about $4500 almost 2 years ago. It's simply amazing how big this bill got.

Should I be scared - or just another scare tactic on their part? I am getting my papers ready for the bk - I would like to file 2 weeks from this Friday. I hope I beat them to the punch before getting sued.

sbb

[notme]

This is a follow-up from an earlier post regarding scare tactics creditors use to get $$. I think its the same arrogant collection agency that's harrassing me - the Law Offices of Cohen & Slamowitz LLP. This law firm took over a debt from a previous CA - Worldwide Asset Purchasing who had taken over from my original creditor - Direct Merchants Bank. This is what they mailed me today:

Because of your failure to satisfy your outstanding obligation on the above referenced matter, our client has authorized us to commence a lawsuit against you. In addition to the principal balance due, our client will be seeking court costs, plus interest from February 6, 2006, plus atty's fees of $1,162.49.

Unless you contact us to make arrangements to pay your debt, collection efforts will continue. We urge you to call us at the telephone number set forth above to settle your account.

So now as of March 28, 2006 - the date of this letter they have added atty's fees and inflated the debt to $7,060.92. Wow I remember i owed the original creditor Direct Merchants Bank about $4500 almost 2 years ago. It's simply amazing how big this bill got.

Should I be scared - or just another scare tactic on their part? I am getting my papers ready for the bk - I would like to file 2 weeks from this Friday. I hope I beat them to the punch before getting sued.

sbb

It all depends, I received a letter from a lawyer that they had taken over my acct. they stated I had until the 22nd of March to pay in full. I got that letter end of Feb. By march 2 I received a summons that I was being sued. So I hope that they are just trying to scare and that they really have no intentions on doing anything. Good luck to you.

[lostsoul23]

Okay, here's the thing.

If a third party collector threatens to sue and doesn't, it is a violation of the FDCPA. I know that's not too comforting, but, it's something to know..they try to make that threat alot to rattle people. (Third party collectors have stricter rules to follow the same party.)

A administrative wage garnishment is different from a "traditonal" garnishment, with ''traditional'' it has to go through the courts, etc. with admin all you have to do is meet the income guideline for your state. Admins though are typically used for student loan debts.

As far as 'emptying' your bank acount, I would, without question, stop all direct deposits and put as little as possible in there. If they get a judgement, the first thing they will hunt for, if they don't have it already, is your banking info. They will garnish it to satisfy the judgement and won't care if that's all you've got. You won't know it's happened until you go to the bank one day to withdraw money and it's gone. (This is one reason I always tell people to never, ever pay a past due bill with a check. The first thing the collector is going to do is verify that banking info and keep it on file...especially the third party ones, and that info goes straight to the lawyer when they sue.)

Once you file BK, it ceases ALL collection acts, as mentioned. I would mention that to your lawyer the status of the case. I had a similar situation in my BK, and my lawyer made a point to make sure the clerk of courts, the lawyer, and the orginal creditor was served both via regular mail & email.

Please, keep in mind the above info is suggestions, I would certainly consult with a lawyer first and go from there. He/she will be much more familiar with the new BK laws and the 'dos' and 'donts.' Best of luck.

[fellowpoorman]

They may well go ahead and sue, but the lawsuit will stop as soon as you file, inform the lawyer of course. Good luck.

[so-beyond-broke]

Your money can't be garnished or taken out of your bank account until there's a judgement against you and the judge has to grant permission. At least this is what I have been told

Okay, here's the thing.

If a third party collector threatens to sue and doesn't, it is a violation of the FDCPA. I know that's not too comforting, but, it's something to know..they try to make that threat alot to rattle people. (Third party collectors have stricter rules to follow the same party.)

A administrative wage garnishment is different from a "traditonal" garnishment, with ''traditional'' it has to go through the courts, etc. with admin all you have to do is meet the income guideline for your state. Admins though are typically used for student loan debts.

As far as 'emptying' your bank acount, I would, without question, stop all direct deposits and put as little as possible in there. If they get a judgement, the first thing they will hunt for, if they don't have it already, is your banking info. They will garnish it to satisfy the judgement and won't care if that's all you've got. You won't know it's happened until you go to the bank one day to withdraw money and it's gone. (This is one reason I always tell people to never, ever pay a past due bill with a check. The first thing the collector is going to do is verify that banking info and keep it on file...especially the third party ones, and that info goes straight to the lawyer when they sue.)

Once you file BK, it ceases ALL collection acts, as mentioned. I would mention that to your lawyer the status of the case. I had a similar situation in my BK, and my lawyer made a point to make sure the clerk of courts, the lawyer, and the orginal creditor was served both via regular mail & email.

Please, keep in mind the above info is suggestions, I would certainly consult with a lawyer first and go from there. He/she will be much more familiar with the new BK laws and the 'dos' and 'donts.' Best of luck.

[fellowpoorman]

slamowitz , thats funny, i'd question their authenticity based on the name.

[SinkingFast]

It all depends, I received a letter from a lawyer that they had taken over my acct. they stated I had until the 22nd of March to pay in full. I got that letter end of Feb. By march 2 I received a summons that I was being sued. So I hope that they are just trying to scare and that they really have no intentions on doing anything. Good luck to you.

I would think they would have to give you some sort of notice of intent. Like 30 days. But it sounds like they can pretty well do anything they want to tie you up. Leaving you with a heck of time trying to get outa the strangle hold. Only to be to the time they originally planned for to begin with.

[notme]

I would think they would have to give you some sort of notice of intent. Like 30 days. But it sounds like they can pretty well do anything they want to tie you up. Leaving you with a heck of time trying to get outa the strangle hold. Only to be to the time they originally planned for to begin with.

Yeah you would think so SinkingFast. I figured we were in the clear.
They pulled my credit report a couple of times a week to see if I was paying anyone else. They wanted to be first in line to get some money.