Legal Question in Credit and Debt Law in New Jersey

Re: Can a collection agency take your assets

Don't worry. Can't happen. They are trying to bully you and it's illegal. Collection agencies are regulated by both state and federal law and even if it's the creditor itself, the can't harass you and lie to you.

Nobody can take your assets without a court order of some kind and you would get notice of the creditor's application and a hearing date where you could speak. A narrow exception to this near universal rule is a car that is financed. As long as they don't cause a breach of the peace, a car loan creditor can usually repo it without prior notice if you default. Certainly no creditor can enter your home without judicial process.

Next time they call, tell them you spoke to an attorney about how much trouble they were in for violating the FDCPA (Fair Debt Collections Practices Act but say the letters; it sounds more impressive) and never to call, write or contact you again if that's what you want because the law says they have to obey your wish. This is because they have their remedy if they want and that is to sue you which I doubt will happen but you never know.

These things don't go away by ignoring them even if is limited to damaging your credit rating so you need to speak to a reputable Debt Counseling Agency or an attorney (the former is free or a nominal cost) to help you straighten this out and get these people out of your life. Good uck.