Receiving a letter or summons notifying you of a credit card debt lawsuit can be a confusing and frustrating experience. Unfortunately, many people don't get the necessary information until it's too late. Here, we'll discuss five crucial tips to consider if a creditor or debt collector is suing you for unpaid debt.
Before understanding how to handle this lawsuit, it's essential to know why you're being sued. If you don't stay current with your credit card payments, your creditor will find ways to contact you to remind you to make your payments. If they do not reach you over time, they may turn that debt over to a collector or file a lawsuit to sue you directly.
If this happens to you, don't panic. Instead, consider these five crucial tips to help you figure out your next steps.
There's a possibility that a creditor or debt collector is suing you by mistake. Borell Law has covered debt lawsuits in Miami and across Florida since 1989 and it’s not uncommon for clients to walk into our office stressing about an unpaid debt just to find out that the debt didn't belong to them. A company can sue you and say you owe them money; however, this claim doesn't make their statement true, so it's best to confirm that the unpaid debt belongs to you.
The last thing you should do when facing a debt lawsuit is ignore it or leave it for later. If you wait until the last minute to handle your case, a default and judgment can be entered against you. Talking to an experienced debt defense attorney will help you figure out your best options for navigating a debt lawsuit.
Borell Law is helping clients settle debt lawsuits every day. Before paying the debt yourself, it's best to speak to a debt defense attorney so they can help you better understand how you can settle or dismiss the debt. Too many people end up paying more than their fair share in these types of lawsuits.
Unless the debt doesn't belong to you, it is important to try and settle first before going to trial. Trying to fight the case in court can add many extra costs compared to settling for a lesser amount. Make sure you talk to an attorney to better understand if it's worth going to trial or trying to settle. Read more here about settlement vs litigation.
It's always recommended that you seek legal representation when someone sues you. An attorney can help you negotiate a settlement, answer the letter, craft a defense, and represent you in court. However, beware of any lawyer who guarantees a dismissal or promises to lower the settlement. There is no way to tell how much a settlement will be or if the case will get dismissed based on a consultation.
If a creditor or debt collector is suing you, taking action immediately is critical, even if you believe you don't owe that debt. If a lawsuit is at stake and you don't handle the case proactively, the consequences can be severe.
If you're interested in learning more about debt relief, follow us on social media @BorellLawOffices so you never miss out on any news or updates.
