If you are battling financial difficulties, debt collection practices, or are the subject of a debt collection lawsuit, you likely have many questions. At Daic Law, we have the answers you need.
FAQs about Debt Collection Lawsuits
Finding out you are the subject of a debt collection lawsuit can be devastating. You work hard and do your best to pay your bills and manage your debt. But unfortunately, sometimes things happen in life that turn our world upside down. For many people, the COVID-19 pandemic continues to be a source of financial strain. Consider the following:
If you are facing a debt collection lawsuit, it is understandable that you are anxious about resolving the situation. The good news is that you are not alone. Get started learning more by reviewing the answers to some of the most commonly asked questions about debt lawsuits:
What type of debt do you help with?
Daic law helps clients resolve debt collection lawsuits related to many types of debt. Contact us if you are facing a debt lawsuit related to medical bills, a home loan, repossession deficiency, insurance subrogation, an auto loan, or credit cards. Find out your best debt defense options.
I received a summons – what should I do?
If you have been served a summons (A/K/A “Citation” or the “Petition”) and are the defendant in a debt lawsuit, it is important to contact an attorney right away. You will need to file an Answer with your local court. You may be able to negotiate a better settlement than what the lawsuit demands, but you will need to consult with an attorney before filing.
I confirmed that a lawsuit was filed against me, but I did not receive any paperwork. What should I do?
If a lawsuit has been filed against you but you have not received any paperwork, contact Daic Law as soon as possible. The plaintiff (the creditor) is required to serve the lawsuit to you (the defendant). Generally, someone will come to your home and hand you the paperwork in person. If you are not properly served paperwork, you may have grounds to dismiss the lawsuit.
What happens if I don’t respond to a debt collection lawsuit?
If you do not respond to the debt lawsuit, the court will file a default judgment against you. What that means for you specifically often depends on your jurisdiction and individual situation. If a default judgment is filed against you, the court allows a debt collection attorney to garnish wages, freeze assets or put a lien on your home or vehicle.
Do I have to appear in court to fight the lawsuit?
Not usually. Once you are represented by an attorney, most of the legal process is handled for you. If there is a special circumstance or you are required to testify, then you may have to appear in court.
How long does it take to resolve my debt collection lawsuit?
It is only natural that you want to resolve your case as quickly and easily as possible. However, you also want to make sure that your debt resolution is successful, which means the process may take some time. Generally speaking, debt lawsuit resolution takes a few weeks to a few months, depending on the details of the case.
What happens if the creditor “wins” the lawsuit?
If the creditor wins your debt lawsuit, you will be required to pay back the amount you owe. You also may owe interest. You may be able to establish a payment plan that meets your income limitations, or set up a wage garnishment plan. Depending on the size of the debt, you can also consider options like Chapter 7 bankruptcy.