Brent’s Credit and Debt blog

Getting sued is a terrible thing. The prospect of having to go to court, the possibility of a judgment on your credit report, and having to meet a debt collector face to face fills most people with dread. Unfortunately, once that suit is filed, there is very little you can do to get out of going to court.

Filing a suit costs a collector money, which they hope to collect in the judgment. But, that cost is a risk the lawyers take. Therefore, by the time they file suit, they are fairly sure about the following:

1. You ARE the debtor that is responsible for the debt.

2. You probably have the ability to pay after the judgment.

3. You probably have an asset they can place a lien against.

4. It is unlikely that you have a defense.

Now, if you really aren’t the debtor that is responsible for that account, simply take that documentation to court and you will win. Similarly, if the collector has violated the FDCPA, you can win the case. However, if you really owed that money, you could be in trouble from the start. You will also win if the debt is older than the statute of limitations in your state has expired for legal action on a debt.

If you are not responsible, you will need to file a response to the suit with the court that you have been summoned to. The response process is different depending on the jurisdiction, but your court probably has a web site that details the process. Be detailed in your response, and make sure the court has the information it needs to settle the case.

On the other hand, it could really be your debt. In that case, you have two options: You can go fight the suit and probably lose, or you can try for a settlement with the collector.

If you choose to settle, remember that the collector has invested money in the case, and they will want to recover those costs. So, the amount you pay will go up. Also, you are basically out of bargaining power at this point. They have a case prepared, and they have a high level of confidence that they will win.

If you run into this situation, a settlement early is often a good thing to do. Try to get the collector to waive interest, and as much of the principle as possible. Then, get a payment schedule set up and make the payments on time.

Remember, they sued you once. If you default on a payment schedule, they will absolutely sue you again.

To learn more about how to fix your credit and keep it clean, get my e-book ‘Credit Cleanup’ by clicking the link. ‘Credit Cleanup’ will walk you through how to repair your credit, and tell you how to keep your credit clean.

To get a copy of my FREE e-Book ‘The Top Ten Ways You Can Wreck Your Credit’, just click the link. You will be taken to a page where you can get more information about downloading the e-book. This book tells you what you should avoid doing concerning your credit, and what negative impacts can occur if you treat your credit wrong.