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Debt Lawsuit
Debt Lawsuit

What is a Collection Lawsuit?

Creditors Collecting on Debts can Take You to Court
When you owe money to a creditor, sometimes they do more than just messing up your credit reports. Sometimes they will go to court and file a lawsuit against you. This is informally called a "Collection Lawsuit," because they are suing you to collect on a debt.

Collection lawsuits are usually filed to collect on credit card debt, automobile repossession debt, broken apartment leases, signature loans, etc. They are not always filed by the original creditor you owed the money to. Why? Sometimes when the original creditor has given up on collecting from you, they sell the debt to another company that specializes in debt collection. This new company, sometimes called a "debt buyer," now has the legal right to sue you and collect from you. So keep in mind that collection lawsuits can be from companies you never heard of, but they may have purchased the right to sue you.

Why are They Suing Me?
The purpose of the collection lawsuit is to get what is called a "Default Judgment" against you. The Plaintiff (person suing you) is hoping that the Defendant (you) just lay down and get beat up. They are hoping that you do not answer or fight the lawsuit, so they can get whatever they want from the judge. Because the judge has not heard from you, he or she will award the Plaintiff a lot more money than you should actually owe. This is not fair to you, and you should not let it happen.

What can They do with a Default Judgment?
It depends on your state. Some states allow them to force your employer to deduct money from your paycheck to pay them (garnish your wages). Other states allow them to garnish (take) all the money in your bank account without giving any notice to you. The creditor can also put a lien on, or take, your house, cars, and other assets, depending on the exemptions in your state. Having a default judgment against you is very serious, and you should not let it happen.

How can I protect myself?
The good news is that you have lots of affordable options when you are facing a collection lawsuit. Options include hiring a lawyer to fight the lawsuit, or possibly killing the lawsuit with a bankruptcy. You should definitely fill out our Free Case Evaluation to see if one of these options is right for you.

How can I fight the Collection Lawsuit if I owe the money?
Many reasons. You probably do not owe the amount of money they are suing you for. They have added on lots of interest and fees that you should not be legally required to pay. They also may have violated Federal laws or procedural rules that render their case against you worthless. For example they may have violated the Fair Debt Collection Practices Act when they were trying to collect from you. You may even be able to sue them back for their bad behavior. That is called a "Counterclaim."

The Plaintiff in the collection lawsuit also needs to have proof. For example, there is a burden of proof whereby they must prove WHY you owe them a certain amount of money by showing different documents such as the credit card agreement, your acceptance of it, and the various charges. If your lawyer shows that they cannot prove all this, then your lawyer may be able to get the case dismissed.

The debt collector hates it when you fight their lawsuit, because it costs them a lot of money to fight you back. Some of them will dismiss the collection lawsuit right away (just give up), while others will settle the case with you for a lot less than they were suing you for.

As you can see, ANY of the outcomes when you fight the lawsuit are better than when you just let the debt collector walk all over you. The lesson is that you should at least talk to a lawyer to see what your options are regarding fighting it.

This Debt Collection Lawsuit is causing so much stress
This is what the Plaintiff in the Collection Lawsuit wants. They want to stress you out to the point where you just ignore them, or you call them and pay them money. DO NOT FALL FOR IT. The collection of debts is a mind game and the debt collection lawsuit is another gun in their arsenal. You must remember that you have many legal rights, and you do not have to be pushed around. You can start protecting your rights and relieving your stress by contacting an attorney in your area. This attorney will have experience in the area of defending collection lawsuits and will give you their best advice. It is a Free Case Evaluation and you have nothing to lose.

Debt Collection Lawsuits are Filed in Volume
What does this mean? It means that the debt collector in your case did not single you out and sue just you. They went down to the courthouse and sued over a hundred people at the same time. You are just a number to them. When you get an attorney and fight back, the creditor is likely to back down and just pursue the poor souls who do not fight back. Do not be one of those poor souls. You owe it to yourself to at least talk to a lawyer in your area for free.