what kind of lawyer do i need to contest a debt

An attorney you know or have worked with before may be able to refer you to an attorney who has experience in consumer law. Depending on the amount and nature of your debt, you may wish to consult with a bankruptcy lawyer. Bankruptcy attorneys may be particularly helpful in many contexts.

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Do I need a lawyer to collect a debt?

Dec 14, 2016 · A debt lawyer is someone with the knowledge, credentials and skill to help consumers struggling with debt sort through their financial troubles. Representing clients in cases against debt collectors is a form of consumer law, the branch dedicated to protecting consumers against unfair trade and credit practices.

How do I contest a debt?

Jan 25, 2017 · An attorney you know or have worked with before may be able to refer you to an attorney who has experience in consumer law. Depending on the amount and nature of your debt, you may wish to consult with a bankruptcy lawyer. Bankruptcy attorneys may be particularly helpful in many contexts.

Do I need an attorney to handle a creditor's lawsuit?

What does a debt attorney do in bankruptcy?

How do I dispute a debt and win?

Is it better to settle a debt or go to court?

How do you fight a collection?

How do you defend against a collection agency?

Can you be sued while in debt settlement?

What percentage should I offer to settle debt?

What is the best reason to dispute a collection?

How can I get a collection removed without paying?

Can debt collectors take you to court?

What should you not say to debt collectors?

Does disputing a debt restart the statute of limitations?

What counts as acknowledging a debt?

Who can refer you to a consumer lawyer?

An attorney you know or have worked with before may be able to refer you to an attorney who has experience in consumer law.

Can low income people get legal aid?

Low income consumers may qualify for legal aid. Find an office in your state here.

Do attorneys charge a fee?

Some attorneys may also offer free services, or charge a reduced fee. There may also be legal aid offices or legal clinics in your area that will offer their services for free if you meet certain criteria.

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.

What happens if you settle debt for less than you owe?

Tax Consequences of Settling a Debt for Less Than You Owe. The IRS generally considers canceled debt of $600 or more as taxable, and settling debts for less than what's owed can increase your tax liability depending on your tax bracket and the canceled amount. Consult a tax professional for more information.

What to do before sue collector?

Before you decide to sue the collector or try to work out a settlement, be sure to consider all options, like filing for bankruptcy. A lawyer can go over all of your potential options with you. Talk to a Bankruptcy Lawyer.

What is a Nolo lawyer directory?

Nolo offers a lawyer directory that provides a profile for each lawyer, organized by area of expertise. Also, two sites that are part of the Nolo family, Lawyers.com and Avvo.com, provide excellent and free lawyer directories. These directories allow you to search by location and area of law, and list detailed information about and reviews of lawyers. Whether you're just starting your lawyer search or researching particular attorneys, visit www.lawyers.com/find-a-lawyer and www.avvo.com/find-a-lawyer.

What is the National Association of Consumer Advocates?

The National Association of Consumer Advocates (NACA) is a nonprofit association of more than 1,500 lawyers and consumer advocates that represent consumers' interests. NACA can help you find a lawyer to take your case to sue a debt collector for illegal debt collection practices.

What is the FDCPA?

The federal Fair Debt Collection Practices Act (FDCPA) makes some collection tactics that debt collectors often use—like using profane language or threatening you—illegal. If a debt collector violates your rights under this federal law, you have the right to sue that collector. If you win your suit, you're entitled to recover damages (money) ...

Can debt collectors use FDCPA?

Debt collectors know that an FDCPA lawsuit can be expensive to defend and could result in a judgment against them. So, you might be able to use FDCPA violations as leverage in debt negotiations. A lawyer can analyze your evidence and let you know how much leverage you have, and help you negotiate settlements if you need assistance.

Do lawyers work for free?

Some lawyers take on a certain number of pro bono cases (meaning the lawyer works for free) to help people who have little or no income or based on other factors. Your state bar association can also tell you if a lawyer might be willing to assist you on a pro bono basis.

What does a debt settlement lawyer do?

A lawyer can also represent you if a creditor files a lawsuit. Debt settlement companies can't do these things.

What is a good attorney?

A good attorney will go over all of your options. The attorney can help you figure out if you really should try to settle your debts or whether you should do something else, like file for bankruptcy, for example. A debt settlement company will probably just try to convince you to hire it to settle the debts.

How does a debt settlement company work?

Debt settlement companies often claim that they'll be able to talk your creditors into settling your unsecured debts for pennies on the dollar. If you're current on your payments, they'll tell you the creditors won't settle unless you stop making payments.

Why do you need to negotiate your own settlement?

It often makes sense to negotiate your own settlement so you can save money and maintain control over the process. Also, your creditors could be reluctant to settle if you hire someone to represent you in the process. After all, if you can afford to hire a debt settlement company or an attorney, why can't you pay the full debt?

Why are debt settlement companies not in business?

Why not? Because debt settlement companies are for-profit companies. They aren't in business because they care about your situation or want to help you out. They want to make a buck, and some are outright scammers. In almost every case, you'll be much better off using the money you would have paid to the debt settlement company to pay down your debt or using it to hire a reputable lawyer to help you.

How to deal with creditors?

You should schedule a meeting to speak directly to the attorney. Find out if the attorney will deal directly with the creditors or if a staff member will be doing the negotiating. If the company says they're "attorney backed" or won't let you meet with or talk to an attorney, that's a big red flag that the attorney has little to do with the operation.

Do attorneys have to be licensed to settle debt?

Attorneys must be licensed and are supposed to uphold strict ethical standards. Unfortunately, not all do. Some debt settlement companies employ lawyers to act essentially as fronts (or, in some cases, attorneys might team up with a debt settlement company) to provide the company an appearance of legitimacy.

What is a debt collection lawsuit?

A debt collection lawsuit begins when the collection agency files a “complaint” (sometimes called a “petition”) in court. The complaint will explain why the collector is suing you and what it wants—usually, repayment of money you owe, plus interest, fees, and costs.

What happens if a collector gets a judgment against you?

Once the collector gets a money judgment against you, you might face wage garnishment, a bank account levy, or a lien on your property.

What is discovery in a lawsuit?

“ Discovery ” refers to the formal procedures that parties in a lawsuit use to get information and documents from each other to prepare for trial or settle the case. If you don’t raise any defenses or counterclaims, the collector probably won’t engage in discovery. But if you have a good defense or file a counterclaim, you and the collector might want to participate in discovery.

How long does it take to file a lawsuit?

Generally, you’ll get around 20 to 30 days to file a written answer to the lawsuit with the court. You’ll have to respond to the allegations in the complaint and raise any defenses you have, like that the statute of limitations (the law that sets a time limit on the right to file a lawsuit) has expired, or counterclaims against the collector, such as violations of the Fair Debt Collection Practices Act.

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

If you don’t respond to the suit, the collector will most likely ask the court to enter a default judgment, which means you automatically lose the case. The court might then simply award the collector the amount it requested, or it might scrutinize the documentation to make sure the amount is legitimate, or the court might require the collector to present evidence before awarding any money. The collector will probably be able to get attorneys’ fees, court costs, and interest in addition to the amount you owe. Once the collector gets a money judgment against you, you might face wage garnishment, a bank account levy, or a lien on your property.

How to challenge summary judgment?

To challenge a summary judgment motion, you’ll have to file paperwork opposing the motion. If you don’t, you’ll probably lose. Because the outcome of the lawsuit is at stake, you should seriously consider consulting with a lawyer, if you haven't already, if the collector files this kind of motion.

What happens if a collector files a summary judgment?

If the judge grants the motion, the court will enter a judgment against you without a trial.

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 to do if you are sued by a creditor?

If you've been sued by a creditor for the collection of a debt, you may decide to hire an attorney to represent you in the lawsuit. If you want help defending against a collection lawsuit, below are some things to think about, including how to find a good lawyer to represent you, how much you'll pay in lawyer's fees, what to expect when you first meet with an attorney, and making sure you sign a retainer agreement.

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 to find out if your state has any restrictions on debt collection practices during this national emergency?

To find out if your state has any restrictions on debt collection practices during this national emergency, check your state's official website and look for orders related to the pandemic. The National Consumer Law Center (NCLC) website is also a good source of information on consumer matters, including debt collection limitations during the coronavirus outbreak.

Why do attorneys have a cap on hourly fees?

By the hour, often with a cap to ensure that you do not pay the attorney more than the lawsuit is worth

How long do you have to respond to a collection suit?

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. 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 .)

What should an attorney discuss with you?

The attorney should also discuss the fee with you, how the attorney charges, what amount will be charged, how you'll be billed, and when the attorney will expect payment. The attorney should explain any additional costs, like court fees and expenses you'll be responsible for, like copy costs, postage, and other charges.

What to do if you doubt a debt?

If you doubt that you owe a debt, or that the amount owed is not accurate, your best recourse is to send a debt dispute letter to the collection agency asking that the debt be validated.

How to pay a debt collector?

Should I Pay Debt Collectors or Original Creditor? 1 A creditor may have an in-house collection division. In this case, you are still in debt to the original creditor and that is who gets paid. 2 Sometimes the creditor will hire a collection agency to chase the money for them. Ask the debt collector if they own the debt. If not, you still might be able to negotiate with the original creditor. 3 Often the last straw, the original creditor might sell the debt to a collection agency. In this case, the debt collector owns the debt, so any payment is made to the collection agency.

How many people have been contacted by debt collectors in the past year?

According to the Consumer Financial Protection Bureau (CFPB), one in three consumers – more than 70 million people – were contacted by a creditor or debt collector in the past year. The CFPB says that 250,000 debt collection complaints have been filed since 2011, about 88,000 of them in 2016 alone.

What should a debt dispute letter include?

The debt dispute letter should include your personal identifying information; verification of the amount of debt owed; the name of the creditor for the debt; and a request that the debt not be reported to credit reporting agencies until the matter is resolved or have it removed from the report, if it already has been reported.

How many contacts do debt collectors make?

The Federal Trade Commission says that debt collectors make one billion contacts with consumers every year.

Why is it confusing to know if you should pay a collection agency?

Sometimes it can be confusing to know if you should pay the debt collection agency or the original creditor because a debt changes hands so many times.

How to stop a collection call?

You can stop calls from collection agencies by sending a certified letter asking them to stop calling. Debt collectors must send you a written “validation notice” that states how much money you owe, the name of the creditor and how to proceed if you want to dispute the debt.

What is debt settlement lawyer?

Debt settlement lawyers can command a small fortune for their services, whether they work on contingency (meaning they take a cut of the debt savings they negotiate for you) or charge a specific hourly or per-case rate.

What happens if you owe $20,000?

2. Your wages are at risk of being garnished. In some cases, your creditors can come after your earnings if your debt goes unpaid for too long. For example, if you owe the IRS back taxes, ...

Can creditors sue you for a owed money?

Just as consumers have legal protections, so do creditors who are owed money, which means that in some cases, your creditors may have the right to initiate a lawsuit against you. At that point, bringing an attorney on board often makes sense, especially if there's a chance a serious judgement will be issued against you.

Can creditors come after you?

In some cases, your creditors can come after your earnings if your debt goes unpaid for too long. For example, if you owe the IRS back taxes, or if you're delinquent on your loans, you could be at risk of having your wages garnished, compounding your financial troubles. If that's the situation you're facing, then it might pay to hire an attorney to step in.

How to contest a debt?

Provide all relevant details in your letter to the collection agency. Include details such as your name, account number, amount owed and the reason you are contesting the debt. You might contest a debt if, for example, you have already paid it, you returned the item for which payment is sought, or you are a victim of identification theft.

How long do you have to dispute a collection?

Respond in writing promptly to the first contact you receive from a collection agency. According to the Fair Debt Collection Practices Act, you have 30 days to dispute the debt. If you don’t respond with 30 days, you won’t be able to contest the debt later.

Where to send a complaint to the FTC?

The address is 600 Pennsylvania Avenue, N W, Washington, DC 20580. This enables the FTC to track patterns of violations. The FTC does not resolve consumer debt disputes.

Can you ignore debt collectors?

Although you might just want to pretend they don’t exist, ignoring them won’t make your problems go away. If you have issues with the debts in collection status, you may contest debt to resolve the issues. You have some protection from the Fair Debt Collection Practices Act, which institutes provisions that will prevent collection agencies from engaging in some activities.

What can a debt settlement attorney do?

Even if you don't end up hiring a lawyer, an experienced debt settlement attorney can help you evaluate the creditor's case and your personal circumstances to determine the best course for you.

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 happens if you don't have a defense in a lawsuit?

If you owe the amount that the creditor is seeking in its lawsuit, hiring a lawyer might be a waste of time and money. If you don't have a defense or counterclaim and the creditor can easily prove its case, then you'll lose. You'll then owe the judgment amount, have to pay your own attorney, and might have pay the creditor's attorneys' fees too. (In some types of cases, the losing party has to pay the other side's attorneys' fees).

What happens if you win a counterclaim?

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 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.

What does it mean to be judgment proof?

Being judgment proof really means that you are collection proof. That is, if the creditor gets a judgment against you, can it collect it through wage garnishment, taking your bank account funds, or the like? If not, you are judgment proof. (Learn more about what being judgment proof means .)

Can a creditor produce original paperwork?

the creditor can't produce the original paperwork to prove you owe the debt. (Learn more about common defenses in collection lawsuits .)