This is when the judge will decide whether you have to pay, and it's your chance to make your defense or work out a deal with the creditor. How you handle it depends on whether you owe the debt. You have a few options. Seek out the creditor before the hearing begins and see if you can agree to:. Set up a payment plan where you make regular, affordable payments on the bill until you pay it off. Settle the debt for less than you originally owed. If you can strike a deal, be sure to get a written agreement that says the creditor will consider the debt fully settled and will report it to the credit bureaus as paid.
Credit counseling from a nonprofit credit counseling agency can help you comb through your finances to cover a payment plan or settlement. There are several instances in which you might have standing to refuse to pay a debt. You may be able to invoke these so-called affirmative defenses if, for example:.
What you bought was defective or never delivered. The debt contract was unenforceable or illegal, or you signed it based on falsehoods.
You canceled the contract within the lawful time frame. These are just a few of the possible affirmative defenses. If you think you might have such a defense, seek legal advice on the best way to proceed.
Adequate documentation is key, but also seek the help of a qualified legal professional to help you navigate this process. Watch your debts dwindle. Sign up for an account to link your cards, loans and accounts to manage them all in one place.
Let's do this. In this article:. What happens when you get sued for debt. Place a lien against your property. Gather information. Whatever agreement you negotiate, make sure you get it in writing before you send any payments. If you cannot pay your debt at all, bankruptcy may be an option to consider. The collector has the burden of proof and needs to show in court that you owe it. You can get free copies of your credit report every week until April at www. After that, free reports will be available on an annual basis.
Time is not on your side. If you still need guidance to submit your response right away, talk to an NFCC certified credit counselor. You can work with a counselor online or over the phone. Your counselor can help you put your thoughts in order and guide you step by step in crafting your answer. You are taking the right steps to handle the situation and the extra help will help you deal with your collectors and the court process with more confidence.
Check your records and go over the information given in the complaint to see to whom you owe the debt, how much you owe, when the debt was incurred, and when the last payment was made, if any. If enough time has passed since the last payment, the statute of limitations may be reached. Collection agencies sometimes knowingly sue past the statute of limitations because most people never respond to or even try to challenge debt collection lawsuits and automatically fall victim to a court order they could have disputed.
If you have evidence that anything in the complaint is incorrect, you can use that as part of your defense. Upsolve Community Member I was served papers a few weeks ago from a collection agency trying to sue me for debt.
Do I need to respond Thanks for you r question, James! I'm glad you 're here. Depending on the laws in your state, you may be able to request a time extension of around 30 days. After a court order has been entered, it is difficult to get the judgment reversed.
You may want to consider hiring an attorney or contacting a local legal-aid organization to help you draft and file your response. Many courthouses have free help desks that you can reach out to for assistance. If you are successful in defending your case, and the judge rules in your favor, the lawsuit will be dismissed. If the judge rules in favor of the other party your creditor , however, then collection efforts will begin.
Collection efforts can include wage garnishments, seizure of property, and frozen bank accounts. Another way to avoid a judgment being entered against you in favor of your creditor is to enter into a payment agreement. It is also often worthwhile for you to negotiate a lower debt payment amount. Your creditor may even be amenable to a payment plan if you can show a compelling reason to need one.
Keep in mind, however, that your creditor may re-file the lawsuit and pursue other collection action if you default on your plan. Stopping debt collection lawsuits, and preventing future debt collection actions, is a major reason people file for bankruptcy.
0コメント