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Creditor Lawsuits

What to Expect if You Get Sued for Debt

341 Meeting, Chapter 13, Chapter 7, Consumer bankruptcy, Creditor Lawsuits / By

It is not necessary that you only get sued for a loan that you remember. There can be a case where you get a legal notice for a long-forgotten debt, which is still left unattended.

For such scenarios, you should know what to do if someone sues you. Hence, we have gathered everything that you can expect if you get sued for a debt.

Go through this to get a better idea about the whole procedure.

The Time

The very first thing that you should cater to is the time wherein you have to respond to the notice. You can expect 20-30 days from the day you receive the notice to send an official response.

However, we suggest that you get this done at your earliest. By doing so, you may even have a chance of striking a deal with the creditor or debt collector before things reach the court.

The Debt Itself

You can expect the repayment amount to be more than the amount you borrowed. The amount stated by the creditor could be more than the debt itself and may include interest, charges, court, or even attorney fee as the process is not free for creditors.

Hence, you should expect an amount which can be more than what you owe. This way, you will be in a position of negotiating the amount in front of the court.

The Original Creditor

Another thing that you can expect for such a case is that it may not be the original creditor who is filing the lawsuit against you. This is precisely why we stated earlier that you could get sued for a long-forgotten debt.

Debts get sold, and when that happens, the chances are that the person suing you is not the one you owe your money to. Hence, the situation can get complicated, and you should be prepared with all the documentation you own.

Statute of Limitations

Since lawsuits are filed mostly against unattended debt, you should always check the statute of limitations for such cases in your state. If your creditor sued you within the time frame, the case might continue.

However, if the statute of limitations for this specific type has passed, you will have the upper hand in court. To be sure, do consult an attorney and discuss the possibilities beforehand.

Showing Up in Court

Lastly, you must attend all the court hearings. By doing so, you can make sure that any opportunity that you have of winning the case or having the decision slightly in your favor is not missed.

However, if you do not show up in court, you can expect dire consequences. This includes the decision being taken directly in favor of your creditor, which will eventually give them more power. This power means that your salary, property, and savings are all at risk, which is certainly a situation you will not prefer. Hence, make sure that you always show up for your case.

For more information, speak with an experienced bankruptcy attorney - schedule your free 1-hour consultation today: https://seanflynnlaw.com/calendar/

Steps to Take When You Are Sued by A Creditor

Bankruptcy, Consumer bankruptcy, Credit Repair, Creditor Lawsuits / By

Whether you have a bank loan, a credit card loan, or even an unpaid medical bill, living with excessive debt can be risky. While we all have taken some debt at a given moment, it is necessary to keep track of everything that you owe.

If not, you might find yourself in a difficult situation where your creditor ends up suing you. While you should try your best to avoid such problems, you should also be aware of how to respond to a creditor lawsuit if it ever happens.

You would be surprised to know that a good majority of civil cases that the court addresses are debt cases. If you have received a letter for the same, you should follow these steps to resolve the issue:

Do Not Panic

While it sounds pretty basic, not panicking in such situations is extremely significant. As stated above, these cases are common, and if you have an unattended debt, there is a high chance that your lender will use this way to get their money back. However, if you are not in the right state of mind, you can make things even more difficult for yourself.

Do Not Ignore

Another thing that goes hand in hand with the above point is to respond to the situation. Yes, staying calm is important but that in no way means that you sit back and relax while ignoring the matter altogether.

If a creditor has filed a lawsuit against you, it means that things are pretty serious, and you need to be there to respond to it.

Additionally, you need to take court seriously and be present. Because if you miss court hearings, the final decision will ultimately be in favor of your creditor. Hence, you will lose any opportunity for negotiation.

Be Cautious

If you follow the above two steps, it will become easier for you to take things smoothly. You probably have a debt that has gone unattended for an extended period because of which the creditor had no option but to sue you.

However, this doesn’t mean that you should agree to everything that has been stated against you. Since filing a lawsuit is additional work and money for the creditor, they may include extra charges or interest in the overall cost.

Hence, be very cautious and not take liability for everything right away. However, you will need proper documentation for being in this position, which brings us to our next point.

Documentation

Documentation does not only mean asking the creditor to give you a copy of your complete account statement or other such documents. It also includes all your receipts, salary records, bills, and any other essential documents that may prove helpful in the future.

You may only need all of this if the case involves a debt that you are not in a position to attend. However, you should still keep everything to be on the safe side.

Talk to a Lawyer

Lastly, even if you think that your case is not too serious, you should at least consult a lawyer. This way, you will know the possible outcomes and be better prepared to handle the case. However, if the debt is enormous and you have no way of paying the amount back, you will probably need an attorney by your side.

For more information, speak with an experienced bankruptcy attorney - schedule your free 1-hour consultation today: https://seanflynnlaw.com/calendar/

How to Handle a Debt Collection Lawsuit

Bankruptcy, Credit Repair, Creditor Lawsuits / By

Constant calls, emails, or lawsuits from debt collectors may stress you out, putting you in a frenzy, but they are more common than you know. The Consumer Financial Protection Bureau states that over 70 million Americans have faced debt collectors at some point in their lives, while approximately 25 percent have felt threatened in their dealings.

Debt collection lawsuits are something people do not like to deal with. The type of language used in collection agencies is enough to ignite fear and panic in individuals. After all, when you are served with a lawsuit, and your wages, bank accounts, and assets are under threat, it is natural to become overwhelmed.

This blog will list down the steps you can take to defend yourself or your company against a debt lawsuit to help you stay composed and collected when served papers for debt. First things first- understand your rights.

Respond to the Lawsuit

If you get served a lawsuit or debt claim, the first thing you need to do is respond to it. Failing to respond in a timely manner results in notices arriving in the form of summons and complaints.

If you owe some debt but can’t afford to pay it, you still need to respond otherwise, the collection agency will form a default judgment against you. Then, they might collect their money through wage garnishments or from your bank account.

Challenge the Collection’s Company Right to Sue

You can respond to a lawsuit by challenging the plaintiff’s right to file the lawsuit. Mostly, when a debt reaches this stage, it has already been sold. This means that person who owns the debt is legally required to prove that they have the right to file a lawsuit. Once served, the burden of proof rests with the plaintiff. This means that the person suing you has to prove that you are solely responsible for the debt, that they can legally sue you, and that you owe a specific amount.

To prove that you owe a specific amount, the collection agency needs to show proof of your balance increasing when you made purchases and that your current balance is accurate and accounts for every dollar you have spent.

However, if you choose not to respond, the court will assume that your silence means that you take responsibility for the debt.

Hire Your Own Attorney

If you cannot afford to pay back the debt, incurring further legal expense is not attractive. However, once you consult your attorney, you will be made more aware of your options and have a higher chance of defending yourself against the debt collection lawsuit.

Sometimes, all you need is a third-party to help you see things from a different situation and pick out key elements you might have missed out and could use to your advantage.

File for Bankruptcy

If you cannot pay back the debt, bankruptcy might be the only option. When you file for bankruptcy, an automatic stay is ordered. This means that all debt collection activity must cease until the bankruptcy process is handled.

For more information, speak with an experienced bankruptcy attorney - schedule your free 1-hour consultation today: https://seanflynnlaw.com/calendar/

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