TIPS AND ADVICE


The DebtClear Roadmap

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Lawsuits

Do You Need a Debt Attorney?

The stress of having debts you can't pay and not knowing your legal rights may make you feel as though you have to hire a debt attorney. Unrelenting phone calls, and collection letters filled with legalese, can make it seem like a lawsuit is just around the corner.

While it certainly doesn't hurt to consult a debt attorney to learn more about your options, most attorneys are going to advise one of two things: settle the account or file for bankruptcy.

If you decide to go with a negotiated settlement, consider hiring a debt negotiation company or try doing it yourself. If you do it yourself, make sure you read the free tutorial on debt settlement in the section of our website.

A third option to consider is to enroll in our Lawsuit Defense Partner Program. With over 8 years of experience, this low-cost program will teach you how to fight a creditor lawsuit yourself—and win!

Basic Debt Collection Laws

There are two acts that provide consumers with basic debt collection laws when dealing with original creditors and debt collectors.

  1. The Fair Credit Billing Act (FCBA) states that original creditors must promptly investigate any disputed charges on billing statements and fix any valid errors without damaging the consumer's credit rating. These basic debt collection laws only involve credit cards and revolving charge accounts but not to secured debt, such as vehicle and home loans.
  2. The Fair Debt Collections Practices Act (FDCPA) applies to debt collectors and is intended to eliminate abusive debt collection practices and provides consumers with an avenue for disputing and obtaining validation of debt information. The Act also creates guidelines under which debt collection agencies may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act.
  3. If your rights have been violated under the FCBA or FDCPA, you may have the leverage you need to back a creditor down. For a free consultation with an attorney specializing in these federal laws click here.

Confront Your Debt Collection Lawsuit

No one likes the idea of having to appear in court because they're being sued. It can be scary, intimidating, and stressful. If you're facing a debt collection lawsuit, don't panic and don't ignore it.

The overwhelming majority of debt collection lawsuits usually end up in a judgment against the debtor because:

  1. The debtor either fails to respond to the summons and complaint, and the creditor gets a default judgment, or
  2. The debtor tells the judge some sad story as to why they couldn't pay, and the judge finds in favor of the debt collector.

All the judge cares about is whether the alleged debt is yours. It is important for you to remember that you are innocent until proven guilty and that the burden of proof is on the creditor to prove that you owe them money—not the other way around. Don't make their job any easier by offering up any information that they cannot prove.

Fortunately for you, many debt buyers simply don't have the information to prove an alleged debt. For others, their business models will simply not support having to prove an alleged debt given they bought the account for only pennies on the dollar.

The good news is that you are not alone. There are over 4,000 debt collection agencies in the US filing thousands of suits per day. By joining a community like DebtClear you will be surrounded by folks who have been through a debt collection lawsuit, lived to tell about it, and learned more than a few things along the way. You can also request a free consultation from our Lawsuit Defense Partner.

Navigating Debt Litigation

If you are one of the unlucky few who are handed a summons for a debt collection lawsuit, then you really need some help. Most in your situation can't afford a debt attorney, and even if you could, there might not be a lot he or she could do.

The time to start preparing for debt litigation is before you find yourself in front of a collection attorney in the courtroom. DebtClear's program can teach you a number of techniques that will give you leverage in the courtroom if you ever find yourself sued by a creditor. Even without these proactive techniques, we can also help educate you abo help educate you about what you can do yourself to make it less likelinst you or collect on a judgment.

If you would rather avoid the credit lawsuit by negotiating a settlement, we can show you what to expect, what to consider and even provide you with a debt settlement contract that you can use.

However, if you would like help fighting a debt collection lawsuit yourself, consider enrolling in our Lawsuit Defense Partner Program. They have been helping people successfully defend against creditor lawsuits for over 8 years and know all the players and all their tricks. By making a debt attorney prove their case to the letter of the law you increase the likelihood that they will either give up, or mess up and you can have the case dismissed!