Nobody wants to be faced with debt. However, it is a reality for many. It can creep up on someone slowly, or it can hit them suddenly due to an unexpected expense.
This financial issue can also spiral out of control and lead to people having to deal with debt collectors. In fact, the CFPB noted that in 2016 approximately 70 million Americans were contacted by a debt collector.
If this has happened to you, and you’re not sure how to solve the problem, here are four steps you can take to deal with the possibility of a debt collection lawsuit.
1. Always respond to the claim
According to one of the best debt lawsuit services available, ignoring the claim is the worst step that you can take. If you fail to respond and meet deadlines, this will result in a default judgment. That means the debt collector automatically wins in their claim against you.
While this is bad enough, it also means the plaintiff can collect the money in different ways. This could include taking money directly from your bank account to garnishing your wages. Oh, and expect them to add additional costs to the debt pile, such as extra interest, court costs, and attorney fees.
As a result, never turn a blind eye to the situation. When you receive a notice – typically via a summons and complaint – ensure you reply to it before the set deadline passes.
2. Challenge the plaintiff’s right to sue
Before you challenge the lawsuit, you should challenge if the plaintiff has the right to sue you. Ultimately, if they do not have the right documentation, their lawsuit will often be dismissed by a judge.
Furthermore, the entity that’s attempting to collect the debt is legally required to provide proof they are in a position to do so. Yet if you fail to ask for this to happen, a judge isn’t going to go out of their way to seek these documents. Remain silent, and they will view this as an admission of debt responsibility from your side.
Whether it’s in writing or during a hearing, always ask for valid documentation from the plaintiff.
3. Remember the statute of limitations
Although it depends on certain circumstances, the statute of limitations can also come to your aid when faced with a debt collection lawsuit.
In this case, statutes of limitations oversee the amount of time a creditor has to file a debt collection lawsuit. The rules differ depending on the situation and state, obviously, but most situations will define the time as lasting between four to six years. If your case falls out of that range, the lawsuit has no legs.
However, there is one important element that defines the range: activity. This is because the range isn’t dictated by the time the debt starts, rather when an account was last used. For instance, when you last made a purchase or withdrew funds. This is why certain debt collectors will get overly demanding and rough trying to collect even a minimal amount of money, as it effectively resets the clock for them to file a lawsuit.
4. Get assistance from an attorney
When in debt, paying legal expenses on top of this might not seem like the wisest of choices. However, most attorneys will supply free consultations, and this can help outline what options available for dealing with a debt collection lawsuit.
In the end, their advice can save you a lot of money in the long run.
Add Comment