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How a collection agency decides to take a creditor to court?

8/25/2008 12:52:43 PM

Collection agencies can evaluate your credit report to see if you're still credit worthy. Credit reports can be used to figure out how much money you're paying to other creditors. For example, if your making payments to other creditors, then you probably can make payments to your past due creditor or the collection agency. Another factor may be employment.

Many companies hope for a quick judgment or assume the debtor will not try to challenge the debt in court. With a judgment, the collection agency can start asset location procedures to find your bank accounts, checking and savings accounts, stock accounts, personal property, cars, boats, motorcycles and any other property worth value.


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