A debt collector threatened to sue me and garnish my wages. Can it do that?

A collection agency can file a lawsuit to collect a debt. However, they cannot threaten you with a lawsuit if they have no plans to file one. Furthermore, no collector can garnish your wages without a judge's signature. The Constitution of the United States guarantees you "due process." This means that a collector must sue you and the matter must be heard before a judge before your wages can be garnished. Your employer will not garnish your wages until he receives an official document from the court ordering him to do so. Remember that most threats of this nature are bluffs; however, if you think the collector will carry out the threat, then work out a payment agreement before you get sued.