Legal Question in Business Law in Georgia

collection firms

my husband runs a small painting business,we lost a lot of

money working for a general contractor at the end of last

year.we were unable to pay off all of the paint bill.

we have been paying as much as we can,but they have turned

the account over to a collection agency,they have told me

that if we can not come to a agreement they will send their

private investigators to investigate the company and our

personal holdings. My Question Is Can They Do That

Please answer as soon as possible

Thank You--name removed--Morgan


Asked on 11/02/05, 5:46 pm

1 Answer from Attorneys
Eric Ballinger Ballinger & Associates

Re: collection firms

The short answer is "yes". As private citizens, they have the right to investigate you and determine if you have assets and an ability to apy. As a practical matter, this is a vague threat from a collection agency that is aimed at scaring you into paying the debt. Sure, they may "investigate" you, but they cannot sieze any assets until they have sucessfullys sued and been awarded a judgment by the court. Practically speaking, any investigation is premature.

Collections agancies thrive on intimidation and harrassment. They know most people are afraid of wht the bill collector can do to them. Really, the worst thing they can do is report the debt on your credit. All of the rest of the threats are meaningless until they sue in court.

I suggest that you continue to make payments on the debt. You will probaly pay off the debt before they get around to making the decision to take you to court.

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Answered on 11/03/05, 12:43 am


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