Expert: Michael Brotherton - 10/28/2008

Question
I have received a letter from Blitt and Gaines that states that they are collecting for another collection agency that is North Star Capital Acquisition LLC what I would like to know is what will happen next now that it has been 30 days since I received this letter.  I am not disputing this debt which totals about 11,000 dollars, however from what I see from other letters about Blitt and Gaines they do not offer an amicable payment. I am afraid because I do not have the money to pay them back right now I am just getting back on my feet, my house was almost foreclosed on and I am barely able to pay the mortgage now. what will happen if I go to court? Can the court garnish my wages? Can they put a lean on my home? thank you for any help you can give. Oh, the credit card debt is with Wells Fargo.

Answer
There is usually a predictable sequence of events that transpires in the collection process. For lack of space and time I will just try to predict a couple of scenarios.
Once a collection agency is assigned an account they will usually send a series of letters and call you to death if you have a phone. If you do not respond or you ignore their calls they will attempt to research public records for assets such as real estate, vehicles, etc. They may also pull credit reports to find employment and other info they can use to collect their money.

If they cannot contact you and you have real estate and/or wages they will file suit against you and attempt to obtain judgment. Once a judgment is granted they will record a lien against your home. Keep in mind a lien is just a public notice of a debt against your property which means the debt must be dealt with if you sell your home or try to refinance. It does not mean necessarily that they will foreclose.

If they know you are employed they will probably attempt to garnishee your paycheck if allowed in your state. This can be as much as 25% of your gross income.

They can also attach bank accounts unless the funds are from SSI or disability or other type of pension.

Some states also allow them to freeze your accounts before a judgment is rendered. It does not mean they get your money right away but they can tie up your money for a long time and you must fight to get it back.

I have no info on which state you are in so this information is not specific to your state. Generally you have options available so if you need direct help give me a call at 937 372 8581. We are a full service law firm and may provide services to help. Give me a call.