Tips to Getting Out of a Debt Collection Lawsuit


Getting involved in a lawsuit is tough enough for anyone. However, debt collection lawsuits are a real pain. A debt collection lawsuit is what happens when a creditor files a legal complaint to start a lawsuit against anyone who owes them money. Has a debt collector or creditor sued you? The thought of going to trial because of it is usually enough to stress one out to the point of not sleeping. You will have to face a host of choices to make and things to consider. So what do you do if you’ve been summoned due to a debt collection complaint?

Listed below are some tips for you to get clued up on:

Tip #1: Seek a professional legal opinion.

It would be wise to ask for a lawyer’s guidance before anything else. Some offer free consultations, which is helpful, especially in the middle of a worldwide health crisis. In addition, a lawyer can negotiate a good settlement plan for you, should you seek it, or give more tips about outsmarting debt collectors in court.

Tip #2: Do not take the summons for granted.

Carefully read your summons and have it read by a lawyer so both of you can plan more effectively. Ignoring a court summons is never a good idea, as doing so can make the debt collector win the case. In addition, this can result in your wages and assets being used to pay your debt off.

Tip #3: Know your rights!

The Federal Trade Commission (FTC) enforces the Fair Debt Collection Practices Act (FDCPA) to protect consumers and their rights from being violated by predatory debt collectors and creditors. It is explained by increasing violation cases and complaints from numerous people. Some companies, such as CBE Group,  Credence Resource Management , MCM, are considered the ones with bad reputation for this issue. if you are one fed up with Credence regular calling, so FDCPA  are here for you. This act regulates the behavior of collection agencies,establishing a fair  collection process. For example, a debt collector or creditor can’t contact you at work if you tell them you’re not allowed to get calls there.

Tip #4: Consider your response.

There are three general responses to a debt collection lawsuit. One is to admit the allegations in the complaint. Denying the allegations is another. And the last one is to deny the allegations due to insufficient information about the debt case. A “do nothing” strategy can be possible if your case is judgment-proof. An example of a judgment-proof case is if your main source of income comes from social security. Social security income is exempt from being “indebted.” Remember, you don’t have to think of how to win a debt collection lawsuit if you can avoid it or get out of it entirely!

Tip #5: Check if the loan is truly yours.

It is your right to receive a validation letter from your debt collector or creditor that lists your loan information, including the current creditor and the amount of money owed. The collector or creditor should receive the letter no later than five days after the first communication. If it is not yours, or you don’t have an idea if it’s yours, don’t hesitate to ask for more information. You can always write a debt verification letter to your collector so you can confirm who the original creditor is and ask them to confirm if the statute of limitations on your debt has not expired.

Debt is manageable, but if it comes to the point where someone has to chase after you and your debt, one must be keen to face the music and make important decisions. But, at the same time, one needs to know all the facts to make the right decisions properly. Getting involved in a lawsuit is tough enough for anyone, and debt collection lawsuits can be a real pain. However, getting out of a lawsuit unscathed is what can happen if one is prepared and unafraid to face all challenges.

Author’s Bio:

Deinah Storm used to work in the corporate world as a marketing affiliate. She quit her job to pursue her passion for writing, but to this day, Deinah is committed to educating consumers about the different marketing scams and how to avoid them.

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