how often do collection agencies sue for bad debts?

when do they sue? Immediately? few years after buying the debt?

Update:

a lot of my debts in collections are over 3 years old, is it safe to assume they will not sue

7 Answers

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  • Pam
    Lv 6
    10 months ago

    As often as they can. That is their job and only goal is to collect debts.

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  • 10 months ago

    Depends on when they get them...and the amount of money.

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  • Anonymous
    10 months ago

    Depends on the Collection Agency and who they are working on the Behalf of, and the finanical situation of the debtor.

    In general they will wait until the Statute of Limitations for the debt is about to run out. This varies by state and can be anywhere from 2-6+ years depending on the type of debt. If you are in the 3+ year range, if your States Statute of Limitation are in the 4 year range you are actually just coming into the "danger zone".

    If they feel that there is no way to collect, even in the future they generally won't sue. But very often even if you can't pay now, they will sue as judgements can be valid for many years and if they can be renewed would effectively be valid forver. The amount doesn't usually matter, so don't think that just because your amount is "small" that they won't sue. I've heard of creditor suing for amounts under $100.

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  • Anonymous
    10 months ago

    It really depends how much you owe the original creditor. I mean, they could sue you if you owe them $200, but it's extremely unlikely.

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  • Anonymous
    10 months ago

    They do not sue. They can recommend and facilitate legal action.

    You are not safe for 7 years. If you do not have a job, you are safe.

    Many or most agencies do not buy debts.

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  • 10 months ago

    Shortly before the statute of limitation expires. Not always, but that's a common practice.

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  • 10 months ago

    Collection agencies do not buy debts and collection agencies do not sue. They are hired by creditors to try and collect the money the creditor is owed. The agencies usually try for several months. If they are unable to collect, then they turn it back over to the creditor who then sues, adding collection costs, penalties, court costs, interest, etc. to the debt. There are companies that buy debts (some valid and some not) but those are not the credit reporting agencies, who are not in that type of business.

    Source(s): Certified Paralegal, with 25+ years' experience.
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