Fighting Bill Collectors in Court
Taking Action is Key to Surviving Debt Collection Lawsuts
Nov 2, 2008
Is this a Real Lawsuit or just a Collection Letter Dressed Up Like One?
With everybody and his brother who work in debt collection threatening legal action it’s a good idea to do a little research before you pay for counsel you may not need. There are many websites that may give you the tools you need to see through a scare tactic or realize you better prepare for court. FreeAdvice.com claims that their "legal content has been prepared and is updated by nationally renown specialists at dozens of leading American law firms, and by other capable attorneys and legal professionals." If your fears are confirmed by the free content they provide, they also have a lawyer network broken down by specialty.
There is no general agreement between consumer advocates, or attorneys for that matter, on what the best course of action may be. Some will say it is best to fight and look for any error that you can exploit to get out of the debt. Requests to have a collection agency demonstrate that the debt is really yours in a way that withstands a test in court sometimes results in the debt being dismissed. However, if it is the original lender bringing the court action, it is likely they will have the appropriate paperwork to prove that the debt is owed and you may find yourself also owing court costs and legal fees.
Others suggest that working with the bill collector may stop the legal proceeding and begin a dialog that may result in resolving the debt. If you know the debt is really yours and you don't want to waste your time and legal expenses hoping the lender can't prove in court that the debt is yours, then getting in contact with the lender and making some kind of arrangement is likely your smartest move. One thing is certain; doing nothing now will result in big trouble later.
Respond or Lose
The faster you respond the better. Chances are you are being sued because you didn't respond to the collection agency's phone calls in the first place. You may not have to respond when the creditors call, but you better believe you have to respond when the Court sends you a Summons. Courts usually have deadlines for responding to the claims made in the summons. If you fail to respond, or can't get up the courage to get in touch with the law firm, you may find yourself facing a default judgment. Once the creditor has a judgment, they have the right in many states to garnish wages and put liens on property.
Is it a Real Law Firm?
Ask that question when you receive a document that looks like it came from a law firm. Most importantly, realize that the person you are talking to at the "law firm" is probably just a collection agent who will try to bully you into paying the debt and use the threat of a lawsuit to get you to pay. By the way, threatening to sue you when they really don't intend to is a violation of the Fair Debt Collection Practices Act. If the "lawyer" you are talking to gets a little sketchy about the firm and his credentials, you are probably not talking to an attorney at all. Take that opportunity to re-direct the conversation by saying, "I don't want you to sue me. You don't want to sue me. What can we do wok this out?" Just make sure that whatever they are asking is realistically achievable within your budget. If not, you may make a payment or two and find yourself having to face them in court when the money runs out.
