What to do after being sued by collection agency?
IANherL. That said – if the debt is for 4K, then it was sold to the collections agency for far less. the credit card company has already written her off as a bad debt, and collections agencies buy those bad debts at an incredible discount. Yes, they will still deal with her. More importantly – because they bought her debt at a much lower rate, they will still make a profit even if she negotiates a much lower payment. What she ought to do is call the law office on the summons, and negotiate a payment plan. (She must get everything in writing). She could also show up for the hearing and do the same thing, but that seems far more humiliating and stressful, so she should bite the bullet and get a plan set up and the hearing off the calendar now. What she must NOT do is ignore this any longer. Down that road lie judgments and orders to garnish her wages. If she gets on this, she will be fine.
