No one wants to go to court to avoid paying
creditors. Unfortunately, thousands of people every year face
collections lawsuits. Find out what to expect, and what an attorney
can do to help.
Demand Letters Are Lead-Ins to Court
If you receive a demand letter from a collections
agency, sometimes also called a validation notice, it is the first
sign that you may be headed to court. Under the
Fair
Debt Collection Practices Act (FDCPA), before a
creditor can file a collections lawsuit against you it must first
send you a notice that states:
-
The amount you owe
-
The name of the creditor
-
That you have 30 days to dispute the debt
or the collector has the right to assume it is valid
-
That if you dispute the debt in writing
within 30 days you are entitled to receive a verification of the
debt and its amount
-
That you are entitled to the name and
address of the original creditor upon request during that initial 30
days
If you receive this letter, you should contact a
collections defense attorney right away. If you wait for the 30 days
to go by you could be giving up valid legal defenses.
Inability to Pay Is Not a Defense
Many people choose to represent themselves in
collections lawsuits based on their lack of available funds to pay
their debts. There are many defenses to a collections lawsuit, but
inability to pay is not one of them. If all you have to say is that
you don’t have the money to pay, you will most likely end up with a
judgment against you.
Instead of going in with nothing but your empty
pockets, you should speak to an experienced debtor’s rights
attorney before appearing in court. Many creditors violate laws and
court rules in attempts to get paid. A lawyer can help you prove to
the court:
-
That the debt is not yours
-
That the amount is wrong
-
That interest has been applied improperly
-
That you did not receive proper notice of
the debt or the lawsuit
-
That the collections agency cannot prove
the alleged debt exists
-
That the collections agency violated the
law by harassing you for payment
-
Other legal defenses based on your specific
facts
Many defenses must be raised within the first few
weeks of a collections lawsuit. They must be included in a formal
“Answer to Complaint” that is filed with the court. It is
important that you talk to a collections defense attorney right away
to preserve these defenses and make the best of a bad situation.
