Being Sued for Non-Payment of a Debt?

There’s a knock on the door. You open it to find a polite stranger who asks you to confirm your name. Then he hands you an envelope and walks away. Quickly. Does this mean you’re being sued for a non-payment of something? Debt maybe?

What’s next?

The official court seal on the envelope is the first indication that you’re being sued. Your heart races as you tear open the envelope and read the papers inside. You are now the defendant in a debt collection lawsuit. Mind racing, you consider the ramifications of having a judgment against you as a public record. What that will do to your credit rating for years to come? You reach for the phone, hoping it’s not too late to work something out with them to avoid going to court.

But that is the worst possible thing you can do.

If the situation has reached this point, it is unlikely that the creditor will just drop the case and negotiate with you. Most often, it’s not even your original creditor who is suing you. Debts are bought and sold all the time. The company that owns your debt wants to recoup the cost of purchasing it. They are less likely to negotiate than the original creditor. They want to go to court. Getting a judgment in their favor allows them to seek repayment options such as wage garnishments and liens against the property.

Reaching out for professional help should be your first phone call.

Our company can review your case and help you determine the best course of action. There are specific laws in each state regarding debt collection and statutes of limitations. As debts are bought and sold, mistakes arise, making the collection of debt difficult and sometimes unlawful. Even if the lawsuit has the potential to win in court, having someone on your side is smart. Especially one that knows the legal ins and outs in your state puts the debtor on the defensive. Because if you win the case, not only do they recoup nothing, they could also be responsible for paying your legal fees. So, even if you legally owe the debt, they become much more likely to negotiate out of court when you have professional help. Often at a fraction of the original debt.

Are you in the process of being sued for your debt? You’re not alone. Contact us today and we will help you figure out what to do next.