Sued by a Debt Collector?
When you are sued by a debt collection company, the situation can be scary and, frankly, very confusing. You have been given court papers by a Sheriff’s Deputy or a special process server, and now you have a court date. The best thing you can do is contact a debtor defense litigator — a lawyer who is on the side of debtors in debt collection lawsuits like the ones here at Guardian Litigation Group. At minimum, a debt collection defense litigator can help identify and sort out your options so you can make the best choice under the circumstances. Every case is unique, but here are some of the basic litigation and practical options if you have been sued by a debt collection company.
File for Bankruptcy
Depending on the debt being collected, filing for bankruptcy may put a complete stop to the collection efforts. As such, filing for bankruptcy can be the best option. However, bankruptcy is not available for some debts (like child support and government tax liens). Plus, a person can only file for bankruptcy once every eight years. Debtors in their “eight-year window” will not have bankruptcy as an option. And, in some cases, there may be other reasons to avoid bankruptcy.
Seek Debt Settlement Negotiations
Another option is to seek debt settlement negotiations. These may be global (including all of your debts) or specific to the debt being sued upon. Honestly, any lawyer hired to defend a debt collection lawsuit will engage in these types of negotiations. It is often possible to negotiate the debt down to a fraction of the original claimed debt, and it is almost always possible to eliminate late fees, costs, and other “add-ons” that are typically seen in these cases.
Agreeing to the Judgment
Another option — not the best option, in our view — is agreeing to the judgment. This means that, if the debt collection company is seeking $10,000, then you agree (and tell the judge that you agree) that you will pay the $10,000. It is a bad option because a debt collection company will ALWAYS take less than full value.
Agreeing to a Payment Plan
Yet another option is to agree to a payment plan. We believe this is an even worse option than agreeing to pay the full amount. A payment plan also involves telling the judge that you agree to a payment plan. However, since the judge is “blessing” the payment plan, there are severe consequences to defaulting on the plan. Often, the judge will retain the power to enforce the payment plan, and you will have to appear before the judge if you start missing payments.
Fight the Fight
The final option is to fight the fight in the courtroom. Ultimately, the JUDGE makes the decision on how much is owed, whether the debt is owed at all, whether the debt is owned by THIS person who has been sued, whether the debt collection company violated laws and statutes in seeking to collect the debt, whether the debt has expired, etc. It is possible to completely “win” debt collection cases and have the debts dismissed with prejudice.
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. Our compassionate lawyers will listen to your concerns and advise you throughout the debt collection lawsuit process. Debt collection lawsuits can have lasting repercussions, so please don’t hesitate to contact our legal team so we can help you fight back. Our job is to vigorously defend your rights.
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.
