Debt Collection Lawsuit

If you are drastically behind on your credit card payments or other debts, you may soon find yourself facing a debt collection lawsuit as your creditors try to collect their money.

Ideally, whenever you get into financial trouble, it is almost always best to deal with it proactively and try to work out arrangements with the creditor before the conversation turns to lawsuits. If you cannot, however, then you will have to take your chances in court.

A debt collection lawsuit is not something to be deathly afraid of. It merely means that a court is being asked to legally compel you to pay off a debt. Basically, after hearing the evidence, the court will rule in one of two ways.

One, you will be absolved of the debt and have to pay nothing. Or, two, the court will rule against you and you will be forced to pay the amount of the debt as well as all court costs that the creditor has incurred. The court may also subject your salary to wage garnishment to ensure that the creditor is paid. If you fail to pay the court ordered amount, you may be subject to fines and possible jail time. If your debt is a secured debt, the court may order that the property be seized and given to the creditor.

Once the debt collection lawsuit is filed, the court will assign a date on which it will be heard by a judge. You will be issued a summons to appear in court to contest the claim made by the creditor. If you fail to show on that date, odds are that the judgement will be against you.

You should plan on bringing all pertinent materials to the court - i.e., contract of the original loan, proof of amounts that you have already paid such as canceled checks, and so on. If the reason that you have not is paid due to financial troubles, bring along copies of your income tax statements, salary, monthly household debts, and so on. These things will not mitigate the odds that the ruling will go against you, but f you lose, they may provide the court with an excuse to give you some leeway in repaying the debt.

For a complex lawsuit, and if you can afford one, you may want to hire the services of a debt settlement attorney to represent you in court. Although, not needed for the simplest of cases, an experienced lawyer may be able to best represent the particulars of your case.

Assuming that you did not commit fraud, and that you had every intent to pay off the debt but were unable to due to financial difficulties, or that you simply believed that the amount owed was in error, you really have nothing to lose by showing up in court and presenting your case.

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