Debt Collection Lawsuit Defense: Signs That You are About to Be Sued
Credit companies actually DO file lawsuits to collect on unpaid debts. Debt collection lawsuits often receive little attention in the media, leading many people to believe that creditors rarely file lawsuits. However, debt collection cases are routinely filed; there are thousands of such cases filed every day across the country.
Being sued can be traumatic. To deliver the starting “court papers” — called the “Complaint” and “Summons” — a Deputy County Sheriff is often tasked to locate you and hand-deliver the papers. By itself, being approached by a law enforcement official can be scary. If the Sheriff does not locate you, then you might be contacted by a special process server. This is a specially appointed person whose job is thttps://guardianlit.com/o deliver court papers. The special process server could be anyone. It is enough to make one paranoid.
In any event, there are several signs — or indications — that a debt collection company is getting ready to sue you. When you experience these signs, it is time to be proactive and contact a professional to try and negotiate a debt reduction or a payment plan. It may also be time to consider filing for bankruptcy. The Debt Settlement Attorneys here at the Guardian Litigation Group can help evaluate and explain your options.
Here are some signs that you are about to be sued by a debt collection company:
Increased calls and efforts to collect
Starting a lawsuit is expensive. Filing fees must be paid to the court, and the debt collection company must pay its attorneys’ fees. Thus, before taking the final step, debt collection companies make a concerted effort to get paid or set up a payment plan. This results in increased calls and efforts to collect. If, in the past, there were little or no efforts to collect and, all of a sudden, there is intense activity, this is a particularly significant indication that a lawsuit will be filed.
Threatening letters/formal Notice
Laws have been enacted that prohibit debt collection companies from routinely and vaguely threatening to file litigation against debtors. Debt collection companies can ONLY threaten litigation if they actually have permission from the debt holder or if they actually intend to sue. Often, this requires a formal Notice from the debt collection company of their intent to sue. Thus, if a debt collector actually threatens it, that is a significant indication that you are about to be sued.
Being contacted by a law firm
Another sign that litigation is imminent is being contacted by a law firm. Often, a debt collection company will use “in-house” employees. But when the company switches and hires a law firm, and the law firm contacts you, that is another significant indication that you are about to be sued.
Nosing around about your assets and/or job
Another sign is if you find out that “someone” is asking about your assets. This might be a letter or a call to your bank about any financial accounts. Or, if you own your own house, maybe someone is “checking” on the deed or the property tax rolls. Likewise, someone from the debt collection company might investigate where you work and how much you earn. Often, this is done very stealthily. So, you may only hear about it second-hand or accidentally. If you do find out that someone is investigating your assets and/or employment, that is a sign that you are about to be sued.
Contact Experienced Debt Collection Defense Attorneys
For more information, contact the debtor’s rights and debt collection defense attorneys at Guardian Litigation Group, LLP. We are here to help if you are being sued for a debt you owe.
The information provided in this blog article is for informational purposes only and should not be construed as legal advice. It is not intended to create an attorney-client relationship.
