Can a creditor legally set court dates to collect debt or does the creditor have to sell the account to a law office to settle the debt?

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Can a creditor legally set court dates to collect debt or does the creditor have to sell the account to a law office to settle the debt?

A creditor has told me that they will be setting a court date for me regarding me debt to them.

Asked on December 28, 2011 under Bankruptcy Law, Virginia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Most likely the court date that the judgment creditor mentioned to you is a hearing date for an order of examination where you will be required to appear in court and give testimony as to what assets you have and who you work for.

The purpose of such a proceeding is for the judgment creditor to begin levy proceedings on your bank accounts and to possibly garnish a portion of your wages. If you fail to attend the hearing a warrant for your arrest can very well be issued.

In the interim, if there is a judgment against you, I suggest that you try and enter into a monthly payment plan with the judgment creditor in writing signed by both of you.


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