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I got a summons, then made arrangements to pay monthly, collection agency says they are still going after a judgment.

I am being sued for debt that I owe, so I contacted the debt agency and got monthly payments for 12 months and they will reassess at that time to see if I can make higher payments.  They said they are still going after a judgment and to ignore all the letters I will be getting stating that I am in default because they have on file that I am paying monthly.  They said I don't have to do anything, but I decided to go ahead and file my answer to make sure I am doing everything right.  Can they still go to court if I am paying monthly?


Best Answer

Hi, yes. A common scam debt collectors perform is "settling" the debt and then filing for default against the consumer. For a settlement to be legit, there needs to be a Settlement Agreement in writing. Proof of this agreement then needs to be filed in court either by the collector or the consumer. Most collectors will file proof, or notice, of the agreement in court if requested. The filing in court should be verified. 


Here's our article about settling: https://www.solosuit.com/posts/settle-debt-after-being-served

Go here to find the status of your case https://www.solosuit.com/posts/what-is-status-of-my-case


In nearly every case, when a consumer is sued for a debt, they should file an Answer and only try to settle after the Answer is filed. Having the Answer filed will increase the consumers leverage to negotiate for a lower settlement and protects you against getting pwned by a default judgment. 


So, in your case, since it sounds like you already filed the Answer and negotiated a settlement, you probably need to make sure proof of the settlement is filed in court. 


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Answer

Hi, yes. A common scam debt collectors perform is "settling" the debt and then filing for default against the consumer. For a settlement to be legit, there needs to be a Settlement Agreement in writing. Proof of this agreement then needs to be filed in court either by the collector or the consumer. Most collectors will file proof, or notice, of the agreement in court if requested. The filing in court should be verified. 


Here's our article about settling: https://www.solosuit.com/posts/settle-debt-after-being-served

Go here to find the status of your case https://www.solosuit.com/posts/what-is-status-of-my-case


In nearly every case, when a consumer is sued for a debt, they should file an Answer and only try to settle after the Answer is filed. Having the Answer filed will increase the consumers leverage to negotiate for a lower settlement and protects you against getting pwned by a default judgment. 


So, in your case, since it sounds like you already filed the Answer and negotiated a settlement, you probably need to make sure proof of the settlement is filed in court. 

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