Instant Settle Consultants Debt Settlement
If you have been sued by a collection agency, you will likely want to respond to the lawsuit. A response or answer is filed with the court and must be done by the date specified in the documents, generally 20 days if in state and 30 days if out of state. The debt collector must have valid information that proves to the court that you owe the debt. If you disagree over the debt or the amount owed it should be disputed before the court enters a judgment. A judgment is an official result of a lawsuit in court. You are essentially ignoring the lawsuit if you refuse to accept the letter or by refusing to sign the receipt that shows you have received the letter. If you choose to ignore a court action, it is likely that a judgment will be entered against you for the amount that the collection agency claims you owe. Once a creditor gets a judgment they can garnish your wages, levy your bank accounts, or put a lien on your assets.
The defense of state of limitations is often raised and can bar a creditor from proceeding with a lawsuit. A debtor should get legal advice regarding making a payment on an aged debt. Counter suing is something you need to do if a debt collector has violated provisions of the Fair Debt Collection Practices Act or similar statutes. Don’t be afraid to stand up for yourself! You may have a better chance than you think if you are being sued and you fight back in court. Attorneys fees and costs may be available as well.
Debtors usually hesitate to contact an attorney when they are being sued over a debt that they owe. Perhaps due to the fact that they can’t afford one, or are embarrassed of what has happened. Attorneys who usually take on these types of cases will typically offer a free consultation. They will often represent a consumer for free if they think that the collector has broken the law. This is because they will expect to collect their fees from the plaintiff. Once the collection agency has heard of you being represented by an attorney, they may be much more amenable to settling the debt. While dealing with a debt collection lawsuit, it is very important to keep an eye on your credit scores, and to check your credit reports repeatedly.
The only time you should default is if you definitely owe the debt, have no defenses, and the lawsuit and amount requested by the creditor accurately reflects of what you owe. Even then you should have a plan thought out on what to do. On the other hand, if you have outstanding debts and multiple potential lawsuits, it might be a better idea to file a case with the Bankruptcy Court.