To have the judgment removed from your credit report, your best bet is to contest it—and win. Although some time may have passed, you may still be able to fight the judgment as your attorney files a motion to vacate the judgment.
Full Answer
Jun 21, 2021 · Indicate any income (like Social Security) exempt from garnishment. Sign the bottom of the page and keep a copy of the complaint and your answer for your records. Along with your answer, you’ll have to include a filing fee to the court clerk. If you can’t afford the filing fee, you may qualify for a waiver.
Jan 25, 2017 · There are several ways to find an experienced attorney for debt collection issues. The CFPB’s Debt Collection Rule clarifying certain provisions of the Fair Debt Collection Practices Act (FDCPA) became effective on November 30, 2021. Learn more about the Debt Collection Rule and your debt collection rights. You can: Contact a lawyer referral service in your area and ask …
The suing party (plaintiff) should be the credit card company or place where you have a bank account (or a company that has purchased outstanding debt that originally belonged to one of these entities). The party being sued (defendant) should be you or a co-signer of the account. If you have no idea who the plaintiff is (unless the plaintiff is a debt buyer of your original debt, as explained above), the situation could be a case of:
If you can't afford a lawyer, you may be able to get free legal help from a local legal aid society , the American Bar Association ( ABA) or the National Association of Consumer Advocates ( NACA ). You’d only be responsible for minimal court costs like filing fees.
If you're in an overall bad financial position, you could consider bankruptcy for more general debt relief.
In an asset case, usually only credit card debts listed on the petition will have been discharged.
Identity theft or credit card fraud: You didn’t make or consent to the purchases.
Along with the summons and complaint should come instructions concerning what you need to do next. Usually, you’ll have about 20–30 days to submit an answer. If there’s an answer sheet provided or in your written pleading, you’ll want to:
Even if you think that you legitimately owe the creditor money, you should still make credit card companies prove that you owe the exact dollar amount they’re claiming. This is called their “burden of proof” and it’s a tough requirement to meet. Most times, their claims are baseless or they’re unprepared to prove their court case.
An attorney you know or have worked with before may be able to refer you to an attorney who has experience in consumer law.
Some attorneys may also offer free services, or charge a reduced fee. There may also be legal aid offices or legal clinics in your area that will offer their services for free if you meet certain criteria.
Never leave your originals with anyone. It will be helpful for your attorney to review copies of letters you have received from the debt collector, as well as any copies of records you have kept of phone calls, letters you wrote to the debt collector, or other communications. Read full answer.
An attorney can also point out, and raise in court, defenses that you haven't considered.
If you can't afford an attorney, you might be able to get low-cost or free help from a legal aid program or clinic that provides legal assistance to low-income individuals and families. You can find a list of various legal aid programs on the Legal Service Corporation's website.
If you don't respond to the suit, the court will most likely enter a judgment against you for the amount the creditor claims you owe. Courts routinely order debtors to pay accrued interest plus court fees, which can exceed the original amount owed. Other harmful consequences can include garnishment of wages, directing your bank to turn over funds from your account, and the seizure of personal property. An attorney can explain the specifics about what might happen in your situation.
This deadline is called the statute of limitations. The time limit varies from state to state, but it's generally from three to six years.
If the party that files the lawsuit isn't the original creditor, it must prove it owns the debt. So, the lawsuit paperwork must include appropriate documentation showing that the plaintiff bought your debt from the original creditor or another entity that previously purchased the debt.
An attorney can advise you about what you should and should not say (or do) in regards to an old debt. And, if you decide to hire the attorney to represent you in the matter, the lawyer can deal with all communication to and from the creditor or debt collector.
If you don't qualify for legal services help and can't afford to hire an attorney to represent you throughout the suit , it might be worth paying a lawyer for an hour of legal advice. The attorney might be able to confirm that you don't have any good defenses, provide tips on negotiating with the credit card company, and tell you about other options you could have.
You typically want to contact the collection law firm to settle the judgment.
Interest is accumulated at the rate set by the court, or the maximum allowed by law in your state for judgment debt. While you may be able to be creative in how you avoid paying the judgment you must realize that the balance of the judgment is likely increasing.
If you cannot reasonably come up with the money to settle the debt, or make payments after reaching agreeable terms, look to bankruptcy to stop a bank levy, wage garnishment or lien on property .
The primary ingredient found in any debt settlement recipe, whether there is a judgment or not is… money. If you have enough of this ingredient you need to be aware of a few things.
Before I address the challenges, I want to point out that the best time to settle credit card debts is before a lawsuit is filed, and even before the account is placed with a debt collection attorney.
The short answer to your question is – YES ! CRN does assist in settling debts like credit cards where there was a lawsuit and then a judgment entered against you. Settlements can be negotiated at all stages of the collection cycle.
Wage garnishment is a major concern. Once your wages are attached the creditor has little reason to work with you at resolving the debt for less because they will continue to get paid unless:
One way to respond to a debt lawsuit is to challenge the plaintiff’s right to file the lawsuit. By the time a debt reaches this point, it has often been sold—sometimes more than once. The entity that owns the debt and is pursuing a lawsuit against you is legally required to show proof that they have a right to do so.
2. Challenge the Company’s Legal Right to Sue.
Don’t admit liability for the debt; force the creditor to prove the debt and your responsibility for it.
Requiring proof of the amount you owe can be one way to defend against a debt collection lawsuit.
Just a note: Even when your right to validation has been triggered and you send a request with 30 days of receiving the initial communication, debt collectors are not required to validate within 30 days.
According to the Consumer Financial Protection Bureau, more than 70 million Americans have dealt with debt collectors, and around 25% felt threatened during their dealings with such agencies. The type of language some collection agencies use can spark fear.
The rules vary by state and even situation, but typically the laws provide a range between four and six years in most cases.
You can also beat a credit card lawsuit by filing for bankruptcy. In bankruptcy, you probably can wipe out any credit card debt. If you are interested in filing for bankruptcy , then contact a bankruptcy lawyer as soon as possible.
If you are sued by a credit card company, then you should begin planning your defense right away. You certainly have a good shot of beating the lawsuit. As many as 90% of all plaintiffs in a credit card lawsuit have trouble proving that the defendants actually owe them money. To begin your defense, closely read the documents the credit card company sends you. Then try to meet with a lawyer to get expert legal advice .
Your credit card company will start the lawsuit by filing a complaint in court. As the party bringing the lawsuit, the credit card company is the “plaintiff.”. The complaint is a legal document which describes the facts giving rise to the lawsuit. You should read the complaint closely.
If you fail to respond to the lawsuit, then the plaintiff can get a default judgment. With a default judgment, you lose the lawsuit without even having a chance to defend yourself. In some states, the plaintiff can then garnish your wages. Default judgments are difficult to set aside.
If the plaintiff can’t produce the contract, then you might be able to win summary judgment. Bills of sale. The plaintiff needs to show that it has a valid title to the debt. If the plaintiff bought the debt from another debt buyer, you need every bill of sale all the way back to the credit card company.
If you have been sued for failure to pay your bill, you should try to gather evidence that you have made payment. You can beat the lawsuit if you show you have paid in full. Look for cancelled checks. The credit card company might have cashed your check but applied the money to another person’s account.
Meet with an attorney. To build the best defense, you should meet with a qualified attorney. A lawyer will listen to you describe your situation and offer tailored advice as to how to beat the lawsuit. To find a qualified lawyer, you should contact your local bar association, which should offer a referral.
You want to avoid the entry of judgment at all costs because it will simply ruin your credit. Call, fax, or mail a request to the person suing you and offer a compromise to settle the debt in exchange for dismissing the case
The statute of limitations (SOL) on judgments is long--very long, usually, 12 to 20 years and many are renewable (a judgment may be renewed if the creditor files a new suit seeking to renew the judgment prior to the expiration of the original judgment) therefore the judgment could follow you around forever.
A money judgment acts as a security for the debt you owe, like how a house secures a mortgage or a car secures a loan. By placing a judgment against you the creditor can continue to monitor your assets to find an in to collect.
There is a procedure called a "motion to vacate" a judgment. This procedure can be used if you have good cause to believe you were sued in error, were exempt because of retirement or SSI or served improperly. When you were served you should have been notified with plenty of time to file a response.
Lots of finance companies and banks have folded in the past decade. Those could be removed because there is no way for them to be disputed. Maybe you were serving overseas and should have never been sued under the Soldiers and Sailors Act. Maybe you were on SSI or permanently disabled, or perhaps the case numbers don't match up between the credit bureaus and the court house. You get the idea... Consider the angles to determine if the judgment is able to be removed.
Dismissing/disputing a judgment. Vacating a judgment. If a creditor or collection agency has sued you then that results in a money judgment. A judgment won’t guarantee that the creditor will be paid because he still has to hunt for your bank accounts and assets -- but if he knows where they are they can apply to seize them.
When a debt is in collections and you are served with a lawsuit, you are given about 30 days to object to the filing if you have a cause. If you can prove that the debt is invalid you can get the hearing for the judgment dismissed. If you do nothing -- even if it’s invalid, it will be entered as a default judgment. For this reason, you should never ignore the request for entry from the court. If you can prove it’s erroneous or has flaws, show up and prove it!
I have a judgement that's 6 yrs old. I need a low cost lawyer aware of consumer law to help me negotiate a settlement and get the judgement off my credit report! I want to settle and speed the payments out over several months.
Why hire a lawyer? The money you pay him can go towards the judgement. Look at it this way. You can write a letter to the ?? asking them to consider an offer of settlement for complete removal. Make a reasonable offer and ask that all correspondence be in writing. Don't lowball too much. They more than likely will respond with a counter.
The reason to hire a lawyer is because they might pull a fast one. First of all the original judgement is for $3500, 6 yrs of interest (allowed by law), and penalties, processing fees, blah,
It could be worth a try. Go to naca.com and look for a lawyer in your area. All those listed are consumer attorneys. When you find one, be sure to have him go over all of the paperwork in hopes of a possible error in the judgement. I didn't realize it was that much. Most of all, they have to remove the negative off of the CR or no pay.
If all you want is an attorney to send your letter offering a settlement, get a prepaidlegal attorney for that. They can do it for around $35 once you sign up (that is the fee in most states). They can send the letter out for you within a couple of days. If you're interested I can give you the number of a friend of mine who sells prepaid legal.