Legal Question in Credit and Debt Law in Massachusetts
debt collection
I sent a debt collector $25 as first payment on a balance of $4,400.they accepted the check and asked me to call and make payment arrangements.I called and then was told that $25 was not enough and that I should't send the $25 I was about to send that they were going to sue me for the entire amount.after accepting payment can they do this?
1 Answer from Attorneys
Re: debt collection
Well, the debt collector probably figured out that at $25 per month it would take 15 years to pay off the balance of $4,400 WITHOUT INTEREST. With interest, the balance would NEVER be paid off because interest likely accumulates at a higher rate than $25 per month. After they obtain a judgment from court, they may be able to levy (seize and sell) your house, car, other property, attach your bank accounts or garnish your wages.
If the debt is valid, your options are to negotiate with them or to ignore them hoping that they do not sue. If you have no assets and are judgment-proof, then a lawsuit can't really hurt you. If you have substantial other debts, bankruptcy may be an option.
Feel free to call my office if you have additional questions.
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