Are you facing a debt lawsuit? When you have debt that goes unpaid for a period of time, you may find yourself being served with a lawsuit. Unfortunately these things don’t just go away and some creditors won’t just charge it off and leave you alone.
If you’re involved in a debt lawsuit, there are some things you should know.
- You have rights. Anytime you are being sued, you have the right to a defense. Speak to an experienced debt defense lawyer as soon as you are notified about the lawsuit. A lawyer will review your case and determine how you should proceed. If it is in your best interest to fight the lawsuit, your lawyer will build a case in your defense. There are a few different possible defenses lawyers use to fight debt lawsuits.
Your lawyer could claim that you were not the individual who accrued the debt, that it was a case of identity theft or fraud, or that the amount of debt is incorrect. It could also be argued that you were not served with the lawsuit in a legal manner or that that statute of limitations for collection on the debt has passed. A debt lawsuit defense lawyer will make sure your rights are protected in whatever way possible.
- Debt lawsuits may not come from the original creditor. It is common for a debt lawsuit to come from a collection agency instead of the original creditor. This may be confusing, because you may receive the notification from an agency that you have never done business with. This does not mean that the lawsuit is not legitimate. It is still necessary to respond to the lawsuit, and you should still get help from a lawyer.
Collection agencies purchase unpaid accounts from creditors in order to try and collect the funds after the original creditor has given up. They buy these accounts in bulk at a fraction of the cost of the original debt, and these accounts are often missing necessary documentation. This makes it difficult for them to prove the legitimacy of the lawsuit.
- Always respond as soon as possible. If you are served with a debt lawsuit, it is important to file an answer within the required time period. If you don’t respond in time, the court could order a judgment against you. A judgement can result in garnished wages, seizure of the funds in your bank accounts, and even a lien on your property.
Talk to a debt defense lawyer as soon as you receive notice of a lawsuit. Your lawyer can help you file an answer that is in your best interest and build a case against the creditor or collection agency.
- Bankruptcy is not your only option. When your debt becomes overwhelming, it can be tempting to file for bankruptcy. However, this is not always your best option. Bankruptcy may make it possible to avoid paying back any of the debt you accrued and it stops the lawsuit from being carried out. But bankruptcy will destroy your credit and will stay on your report for 7 or 10 years. This makes it very difficult to rebuild your credit as most creditors will not extend you any credit without significant collateral.
- Your debt may be reduced or eliminated. In many debt lawsuits the amount of the debt is significantly reduced and sometimes completely eliminated. Most cases settle out of court where the case is either dropped, or you may make an arrangement to pay the creditor a portion of the debt. This is far better than filing for bankruptcy.
Facing a Debt Lawsuit? Benjamin Trotter, Attorney at Law, P.C. Can Help
Don’t ignore a debt lawsuit and don’t attempt to handle it alone. Benjamin Trotter, Attorney at Law, P.C. specializes in debt lawsuit defense. We’ve handled numerous debt lawsuits, helping our clients eliminate debt or pay a fraction of the debt.