Do debt collectors really sue?
Emily Carr 
Debt collectors may not be able to sue you to collect on old (time-barred) debts, but they may still try to collect on those debts. In California, there is generally a four-year limit for filing a lawsuit to collect a debt based on a written agreement.
Can debt collectors pursue legal action?
Yes, but the collector must first sue you to get a court order — called a garnishment — that says it can take money from your paycheck to pay your debts. A collector also can seek a court order to take money from your bank account. Don’t ignore a lawsuit, or you could lose the chance to fight a court order.
Can a collection agency Sue you for a debt?
In some cases, debts that have become time-barred may still be listed on your credit report. In others, debts that are no longer on your credit report may still be legally enforceable. If a collection agency sues you for a debt, it’s in your best interest to talk to an attorney who can help you weigh your options and defend you in court.
When do you have to pay a collection agency?
Many people think they have no obligation to pay a third-party collection agency. After all, it’s not the original company you created the debt with. Once you default on the original credit agreement and the business sells the debt to a collection agency, that agency has the right to collect on that debt — assuming the collector operates legally.
What are the odds you will be sued by a debt collector?
If it is unsecured, he might offer you a reduced settlement or new payment arrangement to get you paying again. Big creditors don’t sue over small debts. The collection letter claims that you will be sued for the $284.37 you owe the XYZ Credit Card Company, but the odds that they will sue are extremely small.
What to look for in a debt collection agency?
A reputable agency will also limit its work to collecting debts that are within the statute of limitations, which varies by state. For difficult-to-collect debts, some collection agencies also negotiate settlements with consumers for less than the amount owed.
