What do you do when the collections agency sues you?
September 4, 2012 11:31 PM Subscribe
What to do when a collections agency is taking you to court and you don't have the money to pay them back?
My friend signed up for a recurring monthly service several years ago, thought she cancelled the service, and then moved out of the country. In the meantime, evidently, the service was still charging her and now a collection agency is suing her for a few thousand dollars and has served her with a summons to go to court.
She doesn't have the money to pay the debt -- she earns very little money and has a kid who she supports with no assistance from the father. If the court were to garnish her wages, I don't think she could keep up with basic living expenses.*
What is the next thing she should do? Try to negotiate a payment plan with the collections agency, like $30 a month forever? Go to court and show how broke she is and try to get the judge to create a payment plan? A lawyer would be nice, but how do you afford one when your initial problem is being totally broke? And is there anything else I'm missing?
We are in Oregon.
*It's hard for me to imagine the court would garnish her wages if it meant putting her and the kid out of their house and/or onto state assistance....?