A Collections Agency Sued Me and Won. What Collection Measures Can It Now Take Against Me?
Before debt collectors get a legally-enforceable judgment against you, a collections agency generally has only one way of getting paid: by asking. In Colorado, this is often done by telephone call or letter.
However, once the debt collector sues you and wins, the law allows the collections agency to take further steps to collect your unpaid debt(s). For example, the debt collector can:
– Garnish up to 25% of your net wages;
– Seize your bank accounts; or
– Record a lien against real property (to be paid off when you sell or refinance your home).
The tricky part is that even if you aren’t currently working or don’t own any property, the judgment doesn’t disappear. Depending on the state, court judgments can last up to 20 years, and, in many states, it can be renewed for over-and-over again.
Fortunately, even if you have been sued by a collections agency, you may be able to cancel your debt by filing bankruptcy. Contact our offices in Denver today to discuss your options with a knowledgeable attorney.