The original Creditor signed bill over to collection agency on Dec 3 and agency filed complaint on dec 4? Is that legal?
They did not try to contact me to settle the debt before they filed a summons as it stated in the complaint. There isn’t any possible way . They took over the account on December 3 and i had a complaint filed and mailed to me on the 4th.
Yes, the collection agency can file a lawsuit to try to collect on the debt. It is likely that the original creditor signed over the bill with the express intent to have the collection agency file a lawsuit. Once a judgment has been obtained they will be able to garnish your paycheck. In Arkansas a creditor with a judgment is allowed to take 25% of your take home pay. If you cannot afford that, bankruptcy can stop a garnishment and can kill a lawsuit. I urge you to talk to an experienced bankruptcy attorney right away. It is usually free to have the first visit with an attorney and get your questions answered.