FAQs | Debt Defense Attorneys | Debt Lawsuit Defense in (2024)

FAQs

How to answer a judgement against you? ›

You must fill out an Answer, serve the other side's attorney, and file your Answer form with the court within 30 days. If you don't, the creditor can ask for a default. If there's a default, the court won't let you file an Answer and can decide the case without you.

You have three options: deny, admit, or deny for lack of knowledge. As a rule of thumb, lawyers advise you to deny, deny, deny. Let the plaintiff prove your responsibility for the debt. Include your affirmative defenses: These are reasons why you think the plaintiff is wrong to sue you.

Dealing with debt collection can be very stressful. It's even worse when you get a summons that seems to be from a court or legal authority. Debt collectors sometimes use dirty tricks. For example, they might send fake summons to scare people into paying.

File a Motion for Reconsideration

A motion for reconsideration includes a written brief containing the reasons why you and your legal team believe the decision was unfair or biased. In addition to the written brief, there may be oral arguments before the judge.

You must fill out an Answer, serve the plaintiff, and file your Answer form with the court. Generally, this is due within 30 days after you were served. If you don't, the plaintiff can ask for a default. If there's a default, the court won't let you file an Answer and can decide the case without you.

You may lose the ability to dispute the debt, if you believe you don't owe it or that the amount is wrong, and depending on your situation and your state's laws, the creditor may be able to: Garnish your wages. Place a lien against your property. Move to freeze funds in your bank account.

A collection account can significantly damage your credit score, but the impact lessens over time. Paying off a collection might not immediately improve your credit score, but some newer credit scoring models give less weight to paid collections.

How long before a debt is uncollectible? ›

A debt collector must stop all collection activity on a debt if you send them a written dispute about the debt, generally within 30 days after your initial communication with them. Collection activities can restart, though, after the debt collector sends verification responding to the dispute.

An affirmative defense is a defense that brings up new facts or issues not in the Complaint that, if true, would be a legal reason why the plaintiff should not win, or should win less than they're asking for. It is not a denial that you did what the plaintiff says you did.

Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you do not believe you should pay the debt, for example, if a debt is stature barred or prescribed, then you can dispute the debt.

How likely is it that you will be sued for a debt? According to one Consumer Financial Protection Bureau report, 1 in 7 — or about 15% — of consumers contacted about a debt in collections were sued. But the likelihood of a debt collection lawsuit depends on several factors.

As long as you have a reasonable excuse and a meritorious defense, the judge should grant the Motion to Vacate and vacate the judgment against you. If you want to argue lack of jurisdiction because you were not served with a Summons, you must do it at this time.