what kind of lawyer do you get if your being sued for a debt?

Full Answer

Should I hire a lawyer to defend a debt?

Hiring a lawyer can ensure that you have the best information available with which to defend the suit and can save you money in the long run. What Is a Defense? 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.

Can a creditor Sue you for debt you haven't paid?

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") hire an attorney to represent you in the lawsuit.

Do I need a lawyer to settle a creditor's case?

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. When a creditor sues you to collect debt you haven't paid, you have three choices to deal with the lawsuit:

Can a debt buyer Sue a debt collector?

These debt buyers must be able to produce documentation of the debt in order to sue you, a requirement that does not apply to the original creditor. Therefore, you should request verification of the debt in writing once you are contacted by a debt collector (which may be another financial institution).

What is a small claims court trial?

A judgment is made based on the judge’s decision. That will determine whether you are responsible for the debt and what actions the creditor can legally take from there.

How to contact High and Younes about bankruptcy?

Give us a call at 402-933-3345 or fill out our contact form here. Get Bankruptcy Relief Now. It is our mission at High & Younes to provide clients with the bankruptcy legal services and professional judgment they expect when faced with debt problems and creditor harassment.

Is it normal to fall behind on debt?

It’s easy to fall behind – and fall behind fast. A few weeks behind turns into months behind. The phone won’t stop ringing.

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.

What happens if you don't have a defense?

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).

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 keep your retirement account in bankruptcy?

If bankruptcy might be inevitable, think twice before using retirement funds to pay bills. Most people can keep their retirement account in bankruptcy.

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 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:

Settling the debt out of court

The fact that a creditor has filed a lawsuit doesn't mean you can't negotiate an out-of-court settlement. Once you receive notice of the suit, contact the plaintiff—usually one of your creditors—to try to work out a settlement to pay off debt in exchange for their dropping the suit.

Should you go to court?

It's extremely important to appear for all the court dates in your case. If you fail to show up, the court can enter what is called a default judgment against you. This means the court automatically grants a judgment in the creditor's favor without hearing your side.

Responding to notice of a debt lawsuit

When you're served or presented with notice of the creditor's lawsuit against you, you typically have 20-30 days to file an answer, or a written response to the creditor's complaint or petition. You'll usually also have to pay a filing fee when you file your response.

Defenses to a debt collection lawsuit

In your answer to a debt lawsuit, you'll include any affirmative defenses you have, which may include:

The creditor's burden of proof

The creditor, or plaintiff, has the burden of proof in debt litigation. In other words, it's the creditor's job to prove that you owe the debt, not your job to prove that you don't.

Understanding summary judgment

One possible outcome of being sued for debt is for the court to issue a summary judgment. Usually, in debt cases, the plaintiff files a motion for summary judgment.

What "judgment proof" means

The term "judgment proof" is a little misleading because creditors can still obtain money judgments against you. But when you're judgment proof, they can't collect on them. "Judgment proof" means that you don't have any income or assets a creditor can legally come after. In general, you're judgment proof if:

How a Debt Collection Lawsuit Starts

To start the suit, the creditor or collector files a “complaint” (sometimes called a “petition”) in court. The complaint states why the creditor or collector (the “plaintiff”) is suing you and what it wants from the court. The complaint will ask for a judgment against you for the money you owe, plus interest, attorneys’ fees, and costs.

What Happens When You Get Served Papers for a Debt Lawsuit

A professional process server or a local sheriff will serve you a copy of the suit, or the server might leave a copy with another adult at your address and then mail a copy to you. Sometimes, the court allows the complaint to be served by mail, along with a form for you to sign, acknowledging that you received the paperwork.

Should You File an Answer to the Suit?

If you’re sure you owe the debt, don’t have any defenses, and the amount the collector requested accurately reflects the amount you owe, you might consider not responding to the suit—especially if you’re what’s called “judgment proof.” Being judgment proof means you don’t have any income or property that creditors or collectors can legally go after.

How to Answer a Debt Collection Lawsuit

Most people get around 20 to 30 days to file their written answer to the lawsuit with the appropriate court. You’ll also have to hand-deliver or mail a copy to the plaintiff’s lawyer. In the answer, you have to respond to the allegations that the plaintiff made in the complaint by:

Can You File an Answer Without a Lawyer?

You can prepare an answer, file it, and represent yourself, which is called acting “pro se.” You’ll have to do some legal research, prepare your answer, and learn about all the court rules; otherwise, you could lose the opportunity to defend your case.

Consider a Settlement or Payment Plan, Filing for Bankruptcy

If you have some money available, you’re sure you owe the debt, and you don’t have any defenses or counterclaims, you might want to consider making an offer to settle the debt or set up a payment plan. A lawyer can also help you with this process.

What Happens After You File an Answer

If you file an answer, the creditor or collector could file a motion for summary judgment, asking the court to rule in its favor because none of the material facts of the case are in dispute. The plaintiff might argue that you signed a legal contract, you didn’t make the payments, and you don’t have any valid defenses.

1. Document the debt collection timeline and activities

The exact chain of events may differ from person to person, but legitimate debt collectors must follow an established timeline under the Fair Debt Collections Practices Act. Here’s what you can expect.

2. Gather information on the debt

Before your court appearance, gather as much information about the debt as you can. If you didn’t request verification from the debt collector within 30 days of their initial outreach, you can still attempt to do so. The Consumer Financial Protection Bureau has sample letters here .

4. Consult an attorney

There’s no law that says you have to hire an attorney to handle a lawsuit, but it might be in your best interest to consult one. Understanding your options and gathering the right information can be complicated, and an attorney can walk you through what you need to do. At the very least, you can get a free consultation to get started.

5. Try to settle out of court

If the debt is legitimate, you can try to reach an agreement out of court with the debt collector. You could possibly negotiate a reduced lump sum payment or a payment plan to pay back the debt over time.

6. Show up to your court date

Unless you were able to settle out of court, you must show up to your court date. Failure to show up could result in a court judgment made against you by default.

7. File for bankruptcy (as a last resort)

Depending on your finances and the amount of debt, you may want to declare bankruptcy. Filing chapter 7 bankruptcy means some or all of your property could be sold and proceeds are divided up to the creditors. Whereas if you file chapter 13 you could keep your belongings and arrange a debt payment plan over a period of time.

What to do if you are sued for a debt?

If you have been sued for a debt, or feel that you might be in the near future, it is important that you take remedial measures. Know that much that can be done – provided you act in time. If you cannot resolve the matter with your creditor directly, consider contacting an attorney at the earliest.

What to do if you feel debt is not yours?

If you feel the debt is not yours, you may request its validation. If you owe the money, you need to work with your creditor in arriving at a revised payment plan or a relief. It is only when you don’t come up with a suitable repayment alternative that you may expect to get sued.

What to do if you don't recognize a debt?

If you don’t recognize the debt or feel you don’t owe it, you can ask the creditor to prove the debt’s validity in court. This will involve providing a copy of the original contract as well as all account-related purchases and payment history. If a creditor is unable to provide the required documentation, the judge may dismiss the case. If you’re unsure about how to proceed in this matter, consider getting advice from an attorney.

Can a debt collector garnish your bank account?

It is best not to ignore any such lawsuit notification because doing so might lead to a default judgment. This can result in a debt collector getting the right to garnish your bank account or your wages. Even if you plan to settle the debt, responding to the complaint is in your best interest.