Ignoring your creditors and collection agencies will not stop collection practices, including lawsuits, to compel you to repay your debts. Federal law only requires creditors and collection agencies to confirm the debts are valid before attempting collection practices. Creditors and collection agencies can immediately take you to court without attempting to personally collect your debts if that is the preferred method of collection.
Confirming Your Debts
The Fair Debt Collection Practices Act requires a collection agency to confirm the debt is yours before proceeding with collection practices. A collection agency usually meets this requirement by contacting you by phone or through the mail. Ignoring the collection agency's attempt to contact you doesn't mean the agency hasn't met the legal requirements to confirm your debt. An initial collection letter may include a clause stating that if the collection agency doesn't hear from you within 30 days of mailing the letters or contacting you by phone, the agency will assume the debt is valid and commence collection proceedings.
Refusing Creditor Contact
Federal law also allows you to send a written notification to a collection agency or creditor requesting that the company no longer contact you regarding the debt in question. The law requires the creditor or collection agency to comply with this request. Failure of the creditor or collection agency to comply can result in fines and a potential lawsuit as a violation of the Fair Debt Collection Practices Act. The problem with invoking this right is the negative message it sends to your creditor or collection agency. If you're no longer willing to negotiate to settle a debt, the collection agency or creditor may have no choice but to refer your account to an attorney to sue you to recover the debt.
Collection Agency Lawsuit
Once the attorney representing the collection agency in charge of your debt sues you, the civil court presiding over the case will send you a formal letter detailing the lawsuit and the corresponding hearing dates. Ignoring the written communications from the collection agency's attorney or the court will not make this go away. It's important that you respond to this communication with your intent to attend the hearing. If you fail to appear at any hearing associated with this lawsuit, you may lose all rights to defend yourself in court.
Winning a Judgment
If you fail to appear at the court hearing, the court automatically rules in favor of the collection agency. This enables the collection agency to perform one of multiple actions depending on the laws in your state and the type of debt you have. The collection agency may move to garnish your wages or place a lien on your real property, including a home or automobile, until you pay back all of the debt plus any associated legal costs and processing fees.
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