How to Resolve Debt With Bay Area Receivables (2024 Guide)

Bay Area Receivables (BAR) is a debt collection agency that purchases old debts. They buy these accounts for pennies on the dollar from original creditors. Then they pursue you for the full amount. You have rights and options when dealing with them.

Here’s what you need to know:

• How Bay Area Receivables operates
• Your legal rights when they contact you
• How to respond if they sue you
• How to settle the debt outside court

What is Bay Area Receivables?

Bay Area Receivables is a debt collection agency based in Maryland. They buy unpaid debts from original creditors at a discount. Then they try to collect the full amount from you.

The Better Business Bureau reports BAR was established in 1989. They serve the Delmarva Peninsula and surrounding Maryland areas. In July 2020, the company acquired Delmarva Collection Inc.

Contact information for Bay Area Receivables:

• Phone: 410-860-1600
• Address: 714 Eastern Shore Drive, Salisbury, Maryland 21804
• Mailing Address: P.O. Box 3535 Salisbury, Maryland 21804
• Website: bayareareceivables.com

Who Does Bay Area Receivables Collect For?

BAR collects for commercial and consumer businesses. They also handle medical accounts and legal debts.

Their services include:

• Activity reporting
• Credit bureau reporting
• Litigation services
• Debt recovery
• Pre-collection programs
• Online payment options

What Do Online Reviews Say About Bay Area Receivables?

Online reviews for Bay Area Receivables are mixed. Some consumers report positive experiences. Others describe negative encounters. You can find reviews on Google, Better Business Bureau, and Yelp.

Some consumers have productive communications with BAR. One reviewer named Steven shared his experience:

“I had a very pleasant experience talking to Jasmine there. She was very helpful and informative. I feel confident that my matter will be resolved and cleared.”

Steven’s review shows the value of proactive engagement. He contacted BAR directly and had a positive outcome. Effective communication can make a real difference in your case.

Your Legal Rights When Bay Area Receivables Contacts You

The Fair Debt Collection Practices Act (FDCPA) protects you. The law limits what debt collectors can do when contacting you.

You have the right to send Bay Area Receivables a debt validation letter. After receiving your letter, they must prove the debt belongs to you.

Benefits of sending a debt validation letter:

• You’ll know exactly what you owe
• They may stop harassing phone calls and emails
• They must report the disputed debt to credit bureaus
• They might give up on collecting the debt

What Debt Collectors Cannot Do

Under the FDCPA, debt collectors cannot:

• Call you multiple times daily for the same debt
• Refuse to identify themselves or answer questions
• Contact your friends, colleagues, or family about your debt
• Threaten to confiscate your documents
• Threaten arrest or lawsuit without intent to follow through
• Use vulgar or abusive language
• Call before 8 a.m. or after 9 p.m.
• Pretend to be attorneys, government agencies, or police

If Bay Area Receivables violates these rules, you can sue them. Document every interaction you have with the agency.

How to Respond to a Bay Area Receivables Lawsuit

BAR may sue you if you don’t pay. You must respond to any lawsuit, even if you dispute the debt. You typically have 14 to 30 days to respond after receiving the Summons.

Ignoring a lawsuit has serious consequences. The court can issue a default judgment against you. BAR could then garnish your wages or access your bank accounts.

Our partner Solo can help you respond to the lawsuit properly. Here’s how to fight back.

Step 1: Answer Each Claim in the Complaint

Read the Summons and Complaint carefully. The allegations are divided into numbered paragraphs. Respond to each paragraph with one of three answers:

• Admit: “This is true.”
• Deny: “Prove it.”
• Deny due to lack of knowledge: “I don’t know.”

Deny as many claims as possible. Bay Area Receivables must then prove each claim they make. If they can’t provide proof, the judge may dismiss the case.

Example: Sue denies most claims in her Answer document. BAR realizes they lack documentation to prove their case. They voluntarily dismiss the lawsuit.

Step 2: Assert Your Affirmative Defenses

Affirmative defenses explain why BAR should lose the case. The most common defense is the statute of limitations.

Every state sets a time limit for debt collection lawsuits. Once this period expires, the debt becomes “time-barred.” Creditors cannot sue you for time-barred debt.

For example, California’s statute of limitations on debt is six years. Maryland’s statute of limitations on credit card debt is three years.

Other affirmative defenses include:

• The debt doesn’t belong to you
• The debt was already paid or canceled
• You made partial payments
• You were a co-signer unaware of your obligations
• BAR violated the FDCPA

Example: Todd gets sued in Maryland for a four-year-old debt. He learns Maryland’s statute of limitations is three years. He uses the expired statute as an affirmative defense. The case gets dismissed.

Step 3: File Your Answer With the Court

Complete your Answer document immediately. File it with the court before your deadline. You can file in person, by mail, or electronically.

Send a copy to Bay Area Receivables’ attorney. Use certified mail with a return receipt. Keep proof of delivery for your records.

Our partner Solo can help you draft and file your Answer in all 50 states. Don’t miss your deadline.

How to Settle Your Debt With Bay Area Receivables

Bay Area Receivables wants to collect something rather than nothing. Pursuing you costs them money. They may accept less than the full amount.

Follow these steps to negotiate a settlement:

Determine What You Can Afford

Calculate how much you can realistically pay. Make your first offer slightly lower. You’ll leave room to negotiate upward and reach an agreement.

Remember: BAR bought your debt for pennies on the dollar. They can accept less and still profit.

Get Everything in Writing

Never rely on verbal agreements. Request a written settlement agreement before paying anything. The document should include:

• The settlement amount
• Payment terms and deadlines
• Confirmation that this resolves the debt completely
• Agreement to stop collection activities
• How they’ll report the debt to credit bureaus

If there’s a lawsuit involved, you need a stipulated judgment. Review the document carefully before signing.

Pay on Time

Pay the agreed amount by the deadline. Missing your payment breaks the agreement. BAR can resume collection activities or continue the lawsuit.

Keep proof of payment. Request written confirmation that the debt is settled.

Settlement Example

You owe $2,000 on an old credit card. BAR buys the account for $600. They contact you for the full $2,000.

You can’t pay, so BAR sues you. You respond to the lawsuit, buying time to negotiate. You offer $800 to settle. After negotiations, BAR agrees to $1,000.

You pay half the original debt. BAR still profits $400. Everyone wins.

Should You Negotiate Before or After a Lawsuit?

Negotiate as soon as possible. Settlement becomes harder once BAR files a lawsuit. Court costs and attorney fees get added to your debt.

But you can still negotiate after being sued. Responding to the lawsuit shows you’re serious. BAR may prefer settling to risking dismissal in court.

Our partner Solo helps you respond to lawsuits and negotiate settlements. You don’t need expensive attorneys.

What Happens If You Ignore Bay Area Receivables?

Ignoring BAR won’t make them go away. They’ll escalate their collection efforts. They may:

• Increase phone calls and letters
• Report the debt to credit bureaus
• File a lawsuit against you
• Seek wage garnishment
• Place liens on your property

A default judgment gives them legal power over your finances. Responding protects your rights and your money.

Can Bay Area Receivables Garnish Your Wages?

Yes, but only after winning a lawsuit. BAR must first sue you and obtain a judgment. Then they can request wage garnishment through the court.

Responding to the lawsuit prevents default judgments. Without a judgment, they cannot garnish your wages.

Federal law limits wage garnishment to 25% of disposable income. Some states offer additional protections. Check your state’s garnishment laws.

How Bay Area Receivables Affects Your Credit Score

BAR can report your debt to credit bureaus. Collection accounts damage your credit score significantly. They remain on your credit report for seven years.

Settling the debt helps but doesn’t erase it. The account will show as “settled” instead of “unpaid.” Settled accounts hurt your score less than unpaid collections.

Disputing inaccurate information can remove it from your report. Request validation of the debt. If BAR can’t prove it, they must stop reporting it.

When to Consider Bankruptcy

Bankruptcy may be your best option if you:

• Owe more than you can ever repay
• Face multiple lawsuits from creditors
• Have wages being garnished
• Need a fresh financial start

Chapter 7 bankruptcy eliminates most unsecured debts. Collection lawsuits stop immediately. Your wages and bank accounts are protected.

Bankruptcy affects your credit for up to 10 years. But it gives you immediate relief from overwhelming debt.