13 Jan How Do Creditors Collect Money In Minnesota.
The most common method creditors use to collect a judgement is Minnesota is either a letter or call from a bill collector. Creditors will often use these techniques through a collection agency for the first nine months of the collection process. If this is not effective the creditor may send the collection file to a collection law firm. In Minnesota a few collection law firms handle the majority of collections. Once you begin to get collection letters from Minnesota licenses attorneys is when you have to watch out for a collection lawsuit.
Once the debt goes to a Minnesota collection attorney you will still get calls and letters from the law firm, but if that is not effective the creditor will simply file a lawsuit against you for the amount owed. In most cases the person being sued does not respond to the lawsuit resulting in a default judgement (it is a real lawsuit even if it does not have a court file number in Minnesota). If you do not respond to the lawsuit in 20 days the creditor can file the lawsuit with a Minnesota district court and get a judgement against you. Once they have a judgement they can send garnishment notices to your bank or employer to have money taken from you because of the debt owed to the creditor and the judgement. Once a creditor has a judgement they are less likely to negotiate, since they will be looking for assets to satisfy the judgement.
If a creditor has a judgement against you they can also send paperwork that requires you to disclose the location and amount of assets. If you do not respond to this paperwork or attend the hearing regarding the disclosure of assets, the court can issue a bench warrant for your arrest. Once the bench warrant is issued if you are pulled over for a speeding ticket, you can be brought to the county jail, until the form is filled out, or you pay the debt. It is important to open all mail from creditors once they get a judgement, ignoring the problem will not make it go away. If you have further questions give our law office a call at 952-294-0144.