VERY stupid question......

[Beeheery]

OK, excuse my ignorance, but how are collection agencies able to sue us? I mean, they CHOSE to purchase our bad debt. Nobody forced them. If we arent paying our creditor, why would we pay them? Obviously we arent paying for a reason. So, my question is, why and how can they sue us when they willingly purchased up our bad debt with nothing more than "hope" of getting some $$ out of us. Thank you.

[justbroke]

OK, excuse my ignorance, but how are collection agencies able to sue us? I mean, they CHOSE to purchase our bad debt. Nobody forced them. If we arent paying our creditor, why would we pay them? Obviously we arent paying for a reason. So, my question is, why and how can they sue us when they willingly purchased up our bad debt with nothing more than "hope" of getting some $$ out of us. Thank you.

Because the underlying State and Federal UCC laws say that you must pay your debts.

By suing you, they get to prove to a judge that you owe the debt. Then they get to prove that they "own" (purchased) the debt. Once that's done, now they can pursue getting garnishments and liens against personal property.

They use the laws that are available. Most original creditors (big Banks), can just write the debt off, then sell it for pennies on the dollar to some JDB.

The JDBs love this stuff and their specialty is collecting.

[Beeheery]

Thanks so much for your reply. Do the collection agencies pull credit reports first to see if the people are asset/no asset? I am absolutely NO asset. I don't own a damn thing. So why would one of these agencies buy my almost 20k BOA debt? What can they sue me for? I have nothing. I think that is where my confusion lies. I mean if they want to buy my debt, fine. But it just doesnt make sense to do it when there is nothing they can get out of me. I have never been so glad to not own anything in my life. Haha.

[drowningNdebt]

Then you are judgement proof. They sue for hopes of wage garnishment and asset recovery.

[Beeheery]

Oh yeah...and i don't have a job either. Goodluck with the wage garnishment. LOL.

[TEW]

Because the underlying State and Federal UCC laws say that you must pay your debts.

By suing you, they get to prove to a judge that you owe the debt. Then they get to prove that they "own" (purchased) the debt. Once that's done, now they can pursue getting garnishments and liens against personal property.

They use the laws that are available. Most original creditors (big Banks), can just write the debt off, then sell it for pennies on the dollar to some JDB.

The JDBs love this stuff and their specialty is collecting.

key word prove in most cases they can not if you have the stamina to fight them the banks do not keep good enough records to prove you owe it.

[StartingOver08]

Beeheery, the reason they buy the debt, even if you are judgment proof, is to get an easy default judgment against you. In our state, a judgment is good for ten (10) years. Then the creditor/judgment holder can renew for ANOTHER 10 years. In the meantime the judgment amount is increasing daily due to the accumulating interest.

So even if you have no money now. All they really want is the piece of paper recorded against your name - so that anytime in the next 10 to 20 years they can come sieze an asset (like your bank account or garnish your income). To the creditor, the judgments even have a value because they can be sold. Crazy right? They aren't called junk debt buyers for nothing (JDB's).

[pookieny]

If you have a bankruptcy against the judgement, can they still come after you for it?

[keepmine]

If you have a bankruptcy against the judgement, can they still come after you for it?

If the underlying debt that created the judgment is the sort that can be discharged then, the judgment is void and nobody can attempt to collect it.

[jeb]

Bee, they don't buy "your" note - they buy them in blocks of hundreds or thousnads. Your's just happens to be one of them.

They will try to get you to pay OR make even a $1.00 payment to them - when you make that $1.00 dollar payment, the clock starts all over again as to how long the debt stays alive.

IF - after trying to collect from you - they feel they aren't going to get anything they will sell your note to some other collection agency for an even higher discount and the game starts all over again. - jb

[StartingOver08]

If you have a bankruptcy against the judgement, can they still come after you for it?

No they are not supposed to try to collect for discharged debt. However, as has been noted - some really cheesy debt collects try anyway to collect for discharged debt. Its up to you to point out to them the debt was discharged in a BK and to make sure you do not pay it. (That is the debt that has been referred to as zombie debt because it will not die). Do a search on this forum or even in google to find out more about zombie debts.