How to Deal With Collection Agencies Filing Court Papers

A debt collection agency filing court papers against you can result in spending a day in court and having a possible judgment on your credit report. Due to the significant consequences of a judgment on your record (tarnished report for seven years, inability to get loans, higher finance fees), it's imperative to avoid a possible lawsuit and work with collection agencies.

Instructions

1

Negotiate before the agency files papers for a court hearing. The judge in your case will side with the collection agency if you legitimately owe the money. Avoid this whole ordeal by paying off the collection account or asking the agency to accept installment payments.

2

Defend yourself and ask for proof. Don't pay a collection account simply because an agency threatens a lawsuit. If you can't recall a debt and feel that the agency contacted you in error, write a letter disputing the validity of the balance and tell the agency to send something in writing as evidence that you owe the money.

3

Prevent legal troubles with a debt collection agency with a bankruptcy filing. Creditors and debt collectors cannot file court papers and are prohibited from communicating with you once you file bankruptcy.

4

Go to the hearing to deny the debt; plead your case in front of the judge. Meet with an attorney prior to discuss a plan of action. Bring supporting evidence to the hearing such as a payment receipt or canceled check.