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What Do I Do When My Debt Collectors Take Me to Court?

17 February 2020 No Comment

One day you check your mail and you find a notice. “The debt collections company wants to take me to court!”

You immediately panic because it feels like a really bad situation was just made a lot worse. This type of situation happens more than you think.

It helps not to feel alone, but there are also steps that you need to take immediately when you get that letter to defend yourself in front of a judge. Read on to find out where to start.

Talk to an Attorney

Your first step in this process is to talk to an attorney. You want to find someone that works with debt collections cases because it takes experience to win against these bigger collections companies.

There are a few ways to find a good attorney. Asking for referrals is a good step, but you may not want to reveal your financial troubles to others. Another option is to find the best reviewed debt lawsuit help online.

Make Them Show the Debt Is Yours

The Consumer Finance Bureau found that more than half of consumers who were contacted in the past about debt said that the debt wasn’t theirs. The debt belonged to someone else with the same name or a family member.

The collections company has to prove that the debt is yours. They also have to show the amount that is owed to them.

You’ll need to have your attorney draft a response for the court within a certain amount of time of the filing. You can’t respond directly to the collections agency. If you don’t respond, then a judge will likely rule in favor of the collections agency and you won’t be able to appeal.

File Bankruptcy

If you have a lot of debt and you find yourself in a situation where you can’t pay, you may have to file for bankruptcy.

When you file for bankruptcy, all collections activities have to stop until the case is discharged. This might be your best option. It will negatively impact your credit for years, but it could be worth it to start with a clean financial slate.

Take Action If Your Rights Were Breached

People often feel powerless when they owe money and don’t have the means to pay it back. Collections companies know this and use fear to their advantage.

What you may not realize is that you have rights, even when you don’t have the money to pay a debt. Debt collections companies have to follow the Fair Debt Collections Practices Act.

If they violated this law, you could countersue them and hold them accountable. You may be able to seek damages.

The Collections Company Wants to Take Me to Court!

It’s too easy to find yourself in a situation where you are getting sued by a debt collections agency. If you find yourself saying, “They want to take me to court,” don’t panic. Take action.

You have to have an attorney by your side who can protect your rights as a consumer. They’ll help you navigate the legal challenges and turn things around.

For more financial tips, check out the rest of this site.

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