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Many people who don't want to deal with debt collectors simply just ignore the phone calls and the letters hoping the collector will eventually go away. People do this regardless of whether the debt is actually theirs and sometimes it works. Sometimes, however, it doesn't work. Ignoring a debt collector might produce some consequences you didn't expect.

Calls to Your Friends and Relatives

The collector may not stop trying to get in contact with you. If a debt collector can't reach you by phone or mail, they may start calling around to get in touch with you. They might call your relatives, neighbors, or even your boss. If they collector believes they can get in touch with you some other way, they'll try it.

It's legal for collectors to call your friends or family, but they can only call one time to get your correct contact information and they can't say anything about your debt (except to your spouse, attorney, or parent if you're under 18). Even though a collector may not state that they're collecting a debt, your friends will probably guess at much when the collector says they're trying to contact you about a business matter. By now, most people know that's the phrasing debt collectors use.

Potential Lawsuit

When you ignore a debt collector's attempt to get payment from, they may resort to more drastic measures to get you to pay up. They may file a lawsuit against you. A lawsuit isn't something to be ignored. Once you're served with the lawsuit, you have the chance to file an answer to the lawsuit. After that, a court date will be set and you can show up to plead your case. The judge could rule in your favor and dismiss the case, especially if you have proof that the debt isn't yours or that the statute of limitations has passed.

Continuing to ignore a collector, even after you've been sued, can mean worse trouble. If you don't appear in court, the judge may order an automatic judgment against you that requires you to pay whatever you've been sued for. Then, if you don't pay the judgment, the collector can go back to court and ask that your wages be garnished. Unless you live in a state that doesn't allow garnishments, you could have a portion of your paycheck withheld to repay the debt. Your employer can't fire you for just one garnishment, but if you get another one, they can legally terminate your employment.

How to Stall a Debt Collector

When a debt collector contacts you, request that they send proof of the debt. That process is called validation and you only have to send a letter to the collector saying you dispute the validity of the debt and you want to see proof that you owe. Until the collector comes back with valid proof, they can't collect from you anymore. But, if they do send proof, you have to be prepared for your next action. Settling the account is better than paying in full. Just tell the collector you can only afford to pay part of the balance and ask for a debt settlement agreement outlining your arrangement.

This guest post was written by Steve Dowell, a professional writer specializing in topics related to personal finance, debt relief, credit repair and more. Pass through debtsettlement.com for more tips and advice.

By Steve Dowell
Article Source: http://EzineArticles.com/?expert=Steve_Dowell