3 Ways to Deal with a Debt Lawsuit

As troubling as being sued by a debt collector might be, it really isn’t the end of the world. In fact, most debt collection agencies sue debtors while assuming that they might never respond.

While a common approach is to ignore these lawsuits, it’s not uncommon for several debt collection agencies to trouble debtors.

But what are debtors supposed to do especially if they have no money to respond to a lawsuit?

Here are 3 ways by which a debtor can resolve a debt lawsuit:

#1: Respond to a lawsuit no matter what

Even if you don’t have the money, make sure you respond. If you don’t, the collection agency wins a default judgment against you. Depending on state law, they can then find other ways of collecting payments by either taking money from your bank account or from your wages.

Worse still, they can even add an attorney’s fees or additional interest which can double and triple the balance you owe them.

#2: Challenge the Lawsuit

Lawyers suggest that it is imperative that you challenge that plaintiff’s standing to sue you in their own name. Since collection agencies usually buy credit card debt to then sue debtors, it’s a good idea to check whether they have the paperwork to sue the consumer. If they don’t, then the consumer can ask the court to dismiss the case.

#3: Ask them to prove what you owe

Another way to check whether and how much you should pay them is to request for the original signed agreement as well as a balance on the account from zero to the present. In most cases, banks don’t have these documents let along debt collection agencies. This, rather obviously, will work in your favor in the dismissal of the case.