Ok, time to clear some of the stupidity up. Yeah I have been there, been sued, the whole nine yards. I have also done a great amount of US credit law research.
Step one, get educated on the issues and laws at
Credit Report Repair Free Debt Consolidation Bankruptcy Counseling
There forum is also top notch.
If you're employed they could dock your pay, if you own property they could put a lien on it.
This is true to a point, the thing you have to realize is that in order for them to do that they have to sue you and WIN first. They can't just take your money - they must get a judgment against you! If they tell you otherwise they are lying and trying to scare you.
Next question is: is my debt still under the SOL [statue of limitations] of my state.
Statute of limitations on debt collection
Some states are great as they have small SOL's like two years. Yes it can be reported for up to 7 years but they only have the right to collect on it up to the point of statute of limitations where the debt was incurred! If the debt is past SOL you can saftley tell a CA [collection agency] to go pound dirt as you now have an affermative defence if you do get served.
Some states just paying on it will Troll your debt. What that means is that it will reset the clock on when it became delinquent thus changing your SOL timeframe..
You should have sent them a DV [request of Debt Validation] to make those blood suckers proove that you owed them anything, you'd be suprised how often these guys have nothing. No proof gives you another afermative defence in the case you get sued [they also have to sue you in your county] - oh yeah it has to be itemized also. If they have no proof you can also start taking action back at them! Disputing with the CBs [credit bureaus] or filing a small claims action suite against them for defimation of character and any FDCPA violations and whatnot.
A good cheat sheet of typical CA violations can be found here:
Sue your Creditors for $1,000s!
Each violation can constatue as much as $1,000 PER VIOLATION! I personaly always tape my conversations with CA's although I always DV them first so that doesn't last long.
There's so much to cover, like for a DV to be utilized to it's fullest it should be sent within 30 days of recieving your first 'dunning' letter for a CA. Then you can also not just demand proof but they never call you or your work place - but if it's past 30 days they really don't have to respond with anythning - but you can still use it going into court and say 'hey I asked for some proof, and they never provided anything'.
Questions?