A common question I receive as a debt collection attorney is, “What is the worst that can happen?” The answer is fairly simple. The worst that can happen is the creditor can sue the consumer and obtain a judgment in their favor. With a judgment in hand, the debt collector can then go to the judge and file a motion to either (1) garnish the consumer’s wages or (2) levy the consumer’s bank account.
In wage garnishment in Arizona, for example, a creditor can take 25% of the consumer’s wages with a judgment and court order. How do they know where you work. There is an app for it, of course. As the article below describes a large database with salary and employment information exists that creditors can subscribe to in order to get the information they need to start the garnishment proceeding. Creditors can also go to more common sources like LinkedIn, Facebook, and Google to find employment information.
http://www.businessinsider.