Collection agency threats

It depends upon a lot of factors before considering a lawsuit. It's an expensive and time consuming affair. Creditors as well as the collection agencies will like to settle the matter outside the court unless it is for a huge amount not getting recovered.

One more thing, credit companies hire the CAs for collections. If the CA fails to recover the debt, they will pass it on to some other agency or send back to the original company. They will in turn decide their next actions. If the debt is sold off to a CA, they become the current creditor and now your dealings with them will decide the future results.

Don't let collection agency do something against the federal laws. Most of them are famous for their illegal collections. You should have a look at the fdcpa and know your legal consumer rights. Many things done by the CAs are illegal and they use it as a scare tactic to recover the money fast. The FDCPA will explain everything clearly.

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

I do not have the money to settle. I am worried they will sue and they will put a lien on the house. Just trying to get an idea of percentages.

Has this CA validated your debt account?