Nobody likes to be faced with the prospect of debt collectors. Not only can the thought of the debt be overwhelming and stressful by itself, but collectors can cause those feelings to go into overdrive.
This is particularly the case when you’re served papers and face a lawsuit over the debt. If the lawsuit isn’t dealt with in a reasonable manner, this can place your wages, bank finances, and other assets in jeopardy.
Yet instead of letting the fear of the lawsuit take over, there are steps you can take to successfully deal with the issue. For help in that regard, here are four tips to resolve your debt collection lawsuit.
Always respond
Above all else, when faced with a lawsuit there is always one step you need to take: respond.
When you fail to have the finances to cover the debt, you might assume there’s nothing you can do when a lawsuit notification comes your way. Yet when you opt against responding, this leads to just one result: the debt collector receiving a default judgement in their favor.
This is a bad idea for several reasons. Firstly, it gives the collector additional options for collecting the money from you. This could be simply removing the cash from your bank account or garnishing your wages. They might also gain the option of adding additional fees – such as interest and court costs – to the overall debt.
Understand your rights
As a rule, you should always have a full understanding of your rights. When you fight for your rights in a consumer protection or debt related lawsuit, you have a better standing when it comes to battling the claim.
This is thanks to the Fair Debt Collection Practices Act (FDCPA). The FDCPA incorporates a number of aspects which are considered violations, including harassment from regular phone calls to the use of obscene language.
If the debt collector oversteps the mark, you are well within your right to file a countersuit. Not only could you quash their lawsuit, but you may also receive compensation if a violation leads to any related damages.
Utilize the statute of limitations
The statute of limitations can come to your rescue in some cases. Essentially, these laws dictate the amount of time a creditor has to file a debt-related lawsuit. If they file it outside of the time frame, the lawsuit will be thrown out.
As for how long a debt collector has, this will depend on the situation and state. Typically, they will have four to six years to file it, and this date stats from the last time your debt-related account was active.
Hire an attorney
This type of expense might seem like a bad idea, especially when you already have to deal with your debt. An attorney will have the knowledge and expertise to decide the best course of action against a lawsuit.
Furthermore, you can often receive a free consultation from an attorney – ideal for knowing what type of options are available without spending a penny.
