Lawsuits happen less frequently in debt matters than most people think. Some debtors fall behind, don’t make any payments for years, and never hear from a single attorney. Of course, creditors certainly have the right to sue you to recover their money. But the purpose of the lawsuit is to force a settlement on the matter. In other words, the creditor is just trying to get paid. Accounts that have reached this stage can still be successfully settled, provided you have sufficient funds at the time. If the debt validation process is done correctly, you will have an administrative record, and by law the lender does not have standing to sue you.
Being sued by a debt collector will make most people feel desperate. There are court documents to deal with, odd legal language to read through and the thought of paying on a debt for which you have no or very little money to pay. When being sued by a debt collector, it is important to keep a level head and seek out an attorney who can help you resolve the situation.
The first thing that happens when you are sued by a debt collector is that you will receive a complaint. The complaint is a legal document filed by the collector with the court claiming you owe a specific amount of money. Whatever you do, don’t ignore the complaint! Ignoring the complaint will not help you. If you ignore the complaint, the plaintiff will win automatically. The plaintiff will get a judgment for the amount of money the plaintiff is requesting in the complaint. However, even if the plaintiff wins, there are limits on what the plaintiff can do to collect depending on your state’s laws.
If you are being sued by a debt collector, you need to answer the complaint. If you do not answer the complaint, the plaintiff will automatically win and an action to garnish your wages or levy your bank account could be successful. Again, do not ignore the lawsuit!
Contact us, we can evaluate the situation and provide you options. If the debt collector violated your consumer rights, this may help your case. While you may owe the debt, you might be able to sue the debt collector if they violated the FDCPA.