Best buy sold my debt to a lawyers office and they are taking me to court. They say I need to pay 1601.27 or if not they will put a lien and...

Question

Best buy sold my debt to a lawyers office and they are taking me to court. They say I need to pay 1601.27 or if not they will put a lien and or a 1099 C to the irs. Can they do this?

Answer

I'm afraid so. If it's truly a debt you owe, then if they charge it off, the IRS treats it as income for you.

Has anyone been calling you excessively in regards to the debt? If so you may have a claim of your own.

Answer

If you owe the debt, they can pursue collections in this manner. If they haven't already, they will file a lawsuit (you will be served with a Complaint and Summons). You will have 20 days to file a formal Answer--you should seek assistance from an attorney. Failure to file an Answer will result in a Default Judgement against you. This will enable them to garnish wages, put a lien on your property, etc.

As Mr. Davis stated, they do have to follow Fair Collection Practices--they cannot call you excessively, harass you at work, etc.