Legal Question in Credit and Debt Law in New York

Re: can a collection agency ask for more than you can pay a month to pay off a debt?

First, find out if in fact they have a judgment against you by checking the local courts in your area. If they do, be very careful. Upon receipt of your first check, they can contact your bank and file a restraining notice on the entire account and then have the marshal seize the amount of the judgment. That is a common tactic used by collection agents and attorneys.

If they don't have a judgment against you, try to work out a payment plan that works for you. They don't have to accept the one you offered, but if you tell them Take it or Leave it, my guess is that they'll take it. If you need further assistance, you can contact me via email. Good luck!

Re: can a collection agency ask for more than you can pay a month to pay off a debt?

Considering that you owe the whole thing, and are obligated on the entire amount, they can ask for the entire sum at once. Anything else is an accommodation to and for you.

Good Luck

RRG

Re: can a collection agency ask for more than you can pay a month to pay off a debt?

First of all...Don't communicate with the collection agency. Since you don't provide numbers if you don't owe alot the creditor may not wish to sue you. NEVER tell them you'll pay even one cent, because doing so means you've verified the whole debt. Send them a letter (Certified Return Receipt REquested) and demand they provide you with proof you owe the money. They may not even be able to get it since the debt was incurred so long ago. If they do send you copies of bills, still do nothing and wait. If you are sued by an attorney (collection agencies cannot sue you) THEN you can try to make a deal. Attorneys are pretty reasonable, but no matter what you do SIGN NOTHING that obligates you to pay $$. Go to court if you have to and tell the Judge that the Insurance Company was supposed to pay. In NY, if you are covered by insurance, the hospital may not bill you if the insurance did not pay...for all you know, the hospital failed to provide the proper paperwork to the insurance company and that would be all their fault. You would not be responsible. SO, DO NOT ADMIT ANYTHING. THey have to sue within 6 years of the date the debt was incurred and it seems you are nearly there now. Don't help them by admitting the debt that starts the 6 year clock over again. so does paying even one cent. Just be mute (unless and until you receive a summons and complaint...). If they did sue you already, read Jason's advise and go to court and get the judgment vacated...its called an Order to Show Cause and the court's have clerks to assist you.