You open up your mail, and there it is. You just got a notice saying that you’re getting sued over unpaid debts. It’s a terrifying prospect for thousands of people. About 15% of people who received a collections call are sued.
You may feel like you’re out of options, but that’s not true at all. There are ways that you can beat a debt lawsuit.
Read on to learn how to win a debt lawsuit.
The Rise of Debt Lawsuits
Why have so many debt collectors filed lawsuits over the past several years? ProPublica spent years analyzing data from debt lawsuits across the country.
They discovered a lot of interesting findings. The conclusion was that the rise in debt lawsuits was largely due to debt buyers.
When you stop paying a credit card bill, the credit card company will sell that debt to try to recover some of the costs. This debt gets sold for a few cents of every dollar of debt.
Debt buyers want to get their money back and make a profit, so they’ll do everything possible. That includes filing a debt lawsuit claim.
How to Win a Debt Lawsuit
A debt lawsuit notice isn’t the end of the world, though it may feel that way. There are steps you can take to protect yourself and win a debt lawsuit.
1. Know Your Rights
It’s essential that you know your rights as a consumer. Debt collections companies have a reputation to overstep boundaries and laws meant to protect you.
The main thing to know is that it’s up to the collections company to prove that they have a right to sue you. They have to prove that the debt is yours and for a certain amount.
2. Hire a Law Firm
You’ll want to hire a law firm to help you with a debt lawsuit. Once a lawsuit is filed against you, everything has to go through the courts. Your responses will need to be legal documents and sent to the court clerk.
A law firm will know what your options are and how to win your case.
3. Respond to the Notice
You may want to ignore the notice because the collection company is wrong. That’s the worst thing you can do because nonaction can be held against you in court.
A judge will likely rule in favor of the collections company. You have to respond within the given timeframe. That’s why it’s important to reach an attorney right away.
Protect Yourself in a Debt Lawsuit
A lawsuit over debt is scary. Yet, there are ways to defend yourself and have peace of mind.
Your best defense to win a debt lawsuit is to work with an attorney. They are aware of your legal rights and will protect them. An attorney will also advise you on the best course of action to win the lawsuit.
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