How long would it take for bad debt to become a legal issue?

Now i'm not talking about debt collectors blowing up phones and mail boxes, i'm talking about debt collectors, such as the irs, summoning an individual to court for the debt owed. does it get persued for a few years before becoming a legal issue? i know it depends on the amount owed so lets say around $10.000.

How long would it take for bad debt to become a legal issue?
It really just depends on the debt collector. Sometimes they won't come after you for several years, but other times they could pursue it after only 6-9 months. Obviously all of your bad debts need to be paid, but as they say, let sleeping dogs lie. If they have not sued and currently aren't showing any efforts to, just save as much cash as you possibly can. Then if they were to try and sue you, you will have cash to settle with them. Depending on how old the debt is and who is trying to collect, you may be able to settle $10K for anywhere between $3K and $6K.
Reply:With debt collectors, they go to court when they run out of patience and believe that there is no other way for them to get their money. Some will wait until the last week before the statute of limitations runs out. Some will sue quickly if they think that you are hiding assets and being stubborn.





If you are dealing with the IRS, it's already a legal issue. The IRS has the legal power to seize property without a warrant or court order.
Reply:IRS invokes their own payback. They will notify your company that your wages are now garnished and the company has to turn over the majority of your paycheck (could be the whole check) to the IRS.





The IRS only takes big names like Wesley Snipes to court to make an examples of them.
Reply:You don't want to wait that long.


If it's the IRS, don't even DREAM of thinking about it.





Find a way to mediate [maybe you have a Legal Aide Society; www.legal-aid.org ] and arrange something amicable to each party.





Who needs another ulcer?
Reply:For $10,000 it is going to depend on your response - if you ignore them they could be in court seeking a judgement and garnishment in just a few months.
Reply:The IRS is not the same a debt collectors. If you owe the IRS, you should pay them and pay them now.

lilac