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A debt collector may not commence a collection action more than 6 years after the date of the consumer's last activity on the debt. This limitations period applies notwithstanding any other applicable statute of limitations, unless a shorter limitations period is provided under the laws of this State.
Even if you owe money, debt collectors aren't allowed to threaten, harass, or publicly shame you. You have the right to order them to stop contacting you, and they must comply. If there's a mistake, and you really don't owe the debt, there are other steps you can take.
Creditors have the option to pursue legal action against debtors who fail to pay their bills or respond to collections action.
How likely is it that you will be sued for a debt? ing to one Consumer Financial Protection Bureau report, 1 in 7 ? or about 15% ? of consumers contacted about a debt in collections were sued. But the likelihood of a debt collection lawsuit depends on several factors.
You must fill out an Answer, serve the other side's attorney, and file your Answer form with the court within 30 days. If you don't, the creditor can ask for a default. If there's a default, the court won't let you file an Answer and can decide the case without you.
Potential Consequences of a Debt Collection Lawsuit Another potential consequence is wage garnishment or bank account garnishment. If the debt collector obtains a judgment against you, they may be able to take a portion of your wages directly from your employer or freeze your bank accounts until the debt is paid.