getting sued for debt collection what kind of lawyer do i need

Tip: Consult an attorney in your state to learn more about your rights if you are sued on a debt. Some attorneys may also offer free services, or charge a reduced fee, such as through your local bar association. You may wish to find an attorney who has experience in the Fair Debt Collection Practices Act

and debt collection issues.

Full Answer

Do I need a lawyer to defend a collection lawsuit?

(The first step is determining if you want to hire a lawyer in the first place. Learn more about whether you should hire a lawyer to defend a collection lawsuit .) Once you've been served with a collection suit, you must act quickly. Depending on the rules for court cases in your state, you might have as few as five days to respond.

What should I do if a debt collector sues me?

If you're sued by a debt collector, you should respond to the lawsuit. Warning: While you must be properly “served” with a lawsuit, you won’t be able to stop the lawsuit by refusing to accept delivery or “service” of the lawsuit.

How does a debt collection lawsuit start?

A debt collection lawsuit begins when a creditor files a complaint with a state civil court listing you as a defendant, along with your co-signer if you have one. The complaint will say why the creditor is suing you and what it wants.

Do you need a lawyer to file an answer to debt?

A lawyer to help you figure out if you have any defenses, prepare the answer and file it, and represent you in court. If you can’t afford to hire an attorney (or paying for a lawyer would cost more than the collector is seeking in the lawsuit), you can prepare an answer, file it, and represent yourself.

What to do when a creditor sues you for debt?

When a creditor sues you to collect debt you haven't paid, you have three choices to deal with the lawsuit: allow the creditor to obtain a judgment against you (called a "default judgment") defend the lawsuit yourself, or. hire an attorney to represent you in the lawsuit. Which option is best for you will depend on a number of factors.

What is a defense in a lawsuit?

A defense is a reason why you aren't liable for the debt or a reason why the creditor shouldn't be allowed to collect the debt. Here are some common defenses to creditor suits: the statute of limitations (the time period in which the creditor must bring the lawsuit) has run.

Can a lawsuit grow if a creditor gets a judgment against you?

But keep in mind that a lawsuit for a relatively small amount can grow if the creditor gets a judgment against you. The creditor will ask the court to include not only the debt balance, but the amount of the creditor's attorneys' fees, court costs, and interest.

Can you hire an attorney to defend a lawsuit?

Even if you have a good defense to the lawsuit, you'll want to consider the amount of the debt before hiring an attorney. Attorneys' fees can add up quickly. If you hire a lawyer to defend a lawsuit over a small debt, you might end up owing more in attorneys' fees than you would if you chose not to defend the suit.

Can you get a judgment against a creditor if you win a counterclaim?

It's not a defense to the underlying debt, but a separate claim. If you win on your counterclaim, you might get a money judgment against the creditor. Your filing of the counterclaim might also induce the creditor to withdraw its lawsuit against you.

What to do if you hire a lawyer to defend a collection suit?

If you decide to hire the attorney to defend the collection suit, be sure that you sign a retainer agreement. The retainer agreement is a contract that governs your employment relationship with the attorney and should spell out at a minimum the details of the fee arrangement you negotiated.

What happens if you don't respond to a collection lawsuit?

The summons attached to the complaint will tell you the deadline for your response. If you don't respond, the court could enter a judgment against you. (Learn more about receiving and responding to a collection lawsuit .)

How do attorneys charge?

How an attorney charges for services can have a big effect on the cost. Most attorneys will charge for their services in one of three ways: 1 A flat fee, no matter how much time it takes or how the suit is resolved. 2 By the hour, often with a cap to ensure that you do not pay the attorney more than the lawsuit is worth 3 By the result. Usually this fee is based on how much the attorney saves you in the long run. For instance, an attorney may agree to a fee of one third of the difference between the amount of the debt and the settlement amount. If you are sued for $10,000, and settle for $4,000, the attorney will get one third of the difference, or $2,000.

How does an attorney charge for services?

Most attorneys will charge for their services in one of three ways: A flat fee, no matter how much time it takes or how the suit is resolved. By the hour, often with a cap to ensure that you do not pay the attorney more than the lawsuit is worth.

What to expect when hiring an attorney?

From the attorney, you should expect competence, ethical behavior, and adequate communication as your case progresses.

What should an attorney explain to a creditor?

The attorney should explain any additional costs, like court fees and expenses you'll be responsible for, like copy costs, postage, and other charges . If the attorney thinks settlement is possible, the attorney will ask you if you have a maximum amount you are willing to pay the creditor.

Can a lawyer recover a counterclaim against a creditor?

If you have a counterclaim that you can file against the creditor, such as one for illegal debt collection practices or unfair trade practices, the attorney might be able to recover his or her fees from the creditor if you win.

When will debt collectors have to give notice of eviction moratorium?

All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium.

Can you leave originals with a debt collector?

Never leave your originals with anyone. It will be helpful for your attorney to review copies of letters you have received from the debt collector, as well as any copies of records you have kept of phone calls, letters you wrote to the debt collector, or other communications. Read full answer.

How to collect a judgment?

Judgments give debt collectors much stronger tools to collect the debt from you. Depending on your situation and your state’s laws, the creditor may be able to: 1 Garnish your wages 2 Place a lien against your property 3 Move to freeze or garnish all or part of the funds in your bank account

What happens if you ignore a lawsuit?

If you ignore a court action, it's likely that a judgment will be entered against you for the amount the creditor or debt collector claims you owe.

What is a judgment in a court case?

A judgment is a court order.

When will debt collectors have to give notice of eviction moratorium?

All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium.

Can a judgment be changed?

A judgment is a court order. Only the court can change it. It's very difficult to get a judgment changed or set aside once the case is over. You have a much better chance to fight a collection in court if you defend the case than if you wait until a judgment is entered against you.

What to say when you are sued for a debt you don't owe?

When you're sued for a debt you don’t owe or for an amount you dispute, two words can give you a strong defense: “Prove it.”. At the hearing, you can ask the creditor to provide the original debt contract and to prove why you owe the amount specified. If it can’t, the judge may dismiss the case.

What to do if you owe a creditor?

If you owe the debt. You have a few options. Seek out the creditor before the hearing begins and see if you can agree to: Set up a payment plan where you make regular, affordable payments on the bill until you pay it off. Settle the debt for less than you originally owed.

What to do if you can strike a deal with a creditor?

If you can strike a deal, be sure to get a written agreement that says the creditor will consider the debt fully settled and will report it to the credit bureaus as paid. Credit counseling from a nonprofit credit counseling agency can help you comb through your finances to cover a payment plan or settlement.

What does it mean when a letter arrives from a law office threatening a lawsuit for payment on an old

A letter arrives from a law office threatening a lawsuit for payment on an old bill. It's upsetting, but hardly rare. You may get hit with a debt collection lawsuit if you have old, unpaid medical, credit card or other consumer debt.

What can a debt collector do with a default judgment?

With a default judgment the creditor may be able to: Garnish your wages. Place a lien against your property. Attempt to freeze part or all of the money in your bank account.

Can you be sued for time barred debt?

Once that passes, the debt is considered “time-barred.”. That means you can’t legally be sued — but collectors may still try it, in violation of your consumer rights. Your obligation to pay time-barred debt remains, however, and the unpaid debt will continue to hurt your credit. Don’t delay.

Do debt collectors pay legal fees?

Often, attorneys will provide a free consultation, and if you win your case the debt collector likely will have to pay your legal fees. Many local legal aid offices offer low- or no-cost services. Military service members can get help from their local judge advocate general office. An attorney can: