If an out of state company sent you to a collection company, does the collection company have to file in my state?

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If an out of state company sent you to a collection company, does the collection company have to file in my state?

I bought a home security system form a door-to-door salesman (big mistake). It failed and when I called for service the people had left the area. I signed a contract but when I couldn’t get it repaired, I stopped paying. The company finally agreeded to no charge for down time. After receiving this notice, I asked what to do next. I was told to send the system back to the company, thus permant down time. Now I am hounded and treatened by a collection company for payment on this contract. Will they have to take me to court in my state to collect?

Asked on June 17, 2012 under Bankruptcy Law, Alaska

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The lawsuit does not have to be filed in your state.  A lawsuit can be filed where the plaintiff resides or where the defendant resides or where the claim arose.

If you are served with the summons and complaint (the complaint is the lawsuit), you will need to file with the court an answer to the complaint within the time set forth in the  summons and serve a copy by mail on the opposing party or the opposing party's attorney.  If that happens, you should file your answer with a cross-complaint for breach of contract.  The cross-complaint is your countersuit.


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