When you’re extremely late paying a debt, the creditor has no other choice but to sell the debt to a debt collection agency. From that point on, it’s up to them to collect the payment. If they are unable to collect, you could find yourself in the middle of a lawsuit. You may be responsible for this debt, or you may not be— it’s up to you to prove your innocence if need be. If you’ve found yourself sued by a debt collector, here’s what you need to know, and what you need to do.
Read The Documents Carefully
All lawsuits come with paperwork explaining the nature of the case. Carefully read the lawsuit documents including the summons and complaint. Read slowly and carefully so that you understand fully the nature of the claim being made against you. Read over all of the dates, and most importantly, know the deadline for when you must respond to the lawsuit.
If you don’t respond by the specified deadline, the creditor could request a default judgment. In other words, you won’t have any chance to defend your case. The court will automatically favor the creditor’s request due to your failure to respond. At this point, the plaintiff we’ll have the right to seize your assets to satisfy the amount due.
In some cases, not responding could even hurt your credit score, so write down important dates, and know exactly how much time you have to work with to defend your case.
Call a Lawyer
Once you’ve noted important details and dates, consult with an attorney as soon as possible. Remember, not all attorneys are created equally, and some specialize in certain cases more than others. Ideally, you want to find a lawyer that has experience with debt collection and can more thoroughly instruct you on how to best defend your case.
Usually, the best place to find a lawyer is by starting with a simple Google search. Look for lawyers in your area who specialize in debt collection and consumer law, and are noted 4.5 stars or above. After the initial consultation, you’ll have a better idea of whether they’re the right fit for you.
Respond
Your lawyer will help you draft a response to the lawsuit that will address and defend any of the allegations made against you. In most cases, you’ll have between 20 and 30 days to send the response, however, it can vary depending on where you are. Your attorney will help answer any questions you have and translate the legal jargon which can often be confusing for the average person to understand.
Gather Evidence
It’s important that you collect any relevant documents that can support your defense. From records of payment to correspondence with the creditor, gather everything that could strengthen your defense and help your attorney win the case.
Negotiate, Settle, or Go to Court
The next step may vary depending on the circumstances. In some cases, you may negotiate a resolution with your creditor before having to go to court. For example, you may be able to negotiate a reduced amount due or break the total amount up into small payments. Otherwise, you’ll have to proceed to court where your attorney will present you in front of a judge.