What To Do If You’re Served With a Debt Collection Lawsuit

Getting taken to court by debt collectors isn’t something that anyone wants to happen to them. The average person probably assumes that it could never happen to them, so they avoid their unmanageable debt, so they don’t have to think about it. Unfortunately, debt collection lawsuits are much more common than most people might like to think.

Millions of Americans are taken to court by debt collectors, and in some cases, people’s lives are totally turned upside down. It’s vital that you take the case very seriously rather than ignoring the problem. Believe it or not, the matter will not disappear even if you try not to think about it. There might be a possibility of getting out of paying what you owe; however, the only chance you’ve got is dealing with it head-on.

If you are facing a debt collection lawsuit, make sure that you do the following.

Respond

Even if you can’t pay your debt, it’s critical that you respond to the notice. You may assume that since you can’t pay it, there’s no use responding, however failure to reply on your part will not go well.

The number one mistake most credit borrowers make when sued is not responding. As a result, you may owe a considerable amount of additional costs between attorney’s fees and interest.

Challenge Credit Company’s Right To Sue

Some experts advise that the best way to respond to a debt collection lawsuit is to challenge their right to file the lawsuit in the first place. Normally, by the time the debt has reached the point of a lawsuit, it has most likely been sold already. Whoever owns the debt at this point and is suing you is required by law to show proof that they are within their legal rights.

In the event that you don’t reply, the judge will assume that your silence assumes your responsibility for the debt. Yet when you ask for legal documentation during the lawsuit, the judge will honor your request.

Consequently, the entity suing you should provide a credit agreement with your signature as well as full documentation of the chain of events leading to the original debt from the original creditor. In some cases, plaintiffs aren’t able to provide this paperwork, and as a result, the lawsuit is dropped. While it may not always work in your favor, in many cases, it does.

Hire a Lawyer

Anytime that you’re facing a lawsuit, you should hire a lawyer. Even if you’re not able to pay, you should have an attorney by your side that can offer advice on how to proceed. Many lawyers will provide a free consultation, which can save you legal fees.

 


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