what kind of attorney do i need if being sued by creditor?

by Mrs. Destiny Watsica 9 min read

If you are being sued by a creditor, you would benefit from hiring a lawyer who can help settle a debt collection lawsuit. An experienced and local collection lawyer can help you determine where you are in the bankruptcy process and how best to proceed.

Hiring a lawyer
If you accepted a judgment and you're wondering how to win a debt collection lawsuit, your best bet is consulting a debt collection attorney. Most consumer law attorneys will offer a free consultation in which they'll discuss your options with you.
Aug 31, 2021

Full Answer

Should I hire a lawyer if a creditor sues me?

If a creditor sues you, whether you should hire a lawyer to defend against the lawsuit depends in large part on whether the creditor can prove its case against you, how much it will cost you to defend the lawsuit, and whether the creditor can collect from you.

What happens if a creditor sues you for a lawsuit?

A lawsuit costs the creditor time and money. Because of this, they may be more interested in settling instead of going to court. If they can prove you owe the full debt and if the statute of limitations hasn’t expired, discuss a settlement offer with them before going to court.

Can a creditor take you to court for an unpaid debt?

This may be as bad as it ever gets, but there’s a chance your creditor or the debt buyer could decide to take you to court. Now you’re being sued for an unpaid debt. It sounds scary (and it can be), but if you understand what’s coming and prepare yourself appropriately, a creditor lawsuit doesn’t have to be a terrifying experience.

Do I need a lawyer for a personal injury lawsuit?

You need someone with experience defending personal injury law suits. Generally this would be taken care of by your insurance; however, since you did not have insurance the burden will be on you to find and retain an attorney.


What is a creditor and a lender?

A creditor, or lender, is the party who loaned money to the debtor. They do so while assuming that the debtor will return the same amount of money borrowed, generally with interest. The most common example of a creditor and debtor relationship would be a bank granting a loan to someone looking to make a large purchase, such as a home or vehicle.

Why do people file for bankruptcy?

A person or business would file for bankruptcy when they are no longer able to make the payments they agreed to make.

How does debt consolidation work?

A Debt Consolidation Loan combines all of your debts into one single loan that you make monthly payments on. This process reduces interest rates and the amount you pay every month. A Debt Consolidation Loan will stop creditor collection efforts, and can save you from bankruptcy. However, this type of debt consolidation requires that you own a home against which you can take or refinance a loan.

What is Chapter 13 bankruptcy?

Chapter 13 filings are referred to as “reorganization” bankruptcy. People who have higher incomes and property that they want protected from creditors will commonly choose a Chapter 13 filing. The process allows the debtor to reorganize the debt and make payments that they can afford.

What is the most common type of bankruptcy?

There are generally two main options for individuals who would like to file personal bankruptcy: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 is the most common type of bankruptcy filing, and is ideal for debtors with low income who have high amounts of unsecured debt.

How long does it take to pay off debt in bankruptcy?

The payment plan is set up to repay most of the outstanding debt, but at an affordable amount per month for the debtor for a set number of years. The time frame is usually between three and five years.

What are the advantages and disadvantages of filing for bankruptcy?

Some examples of benefits include: Automatic stay of collection efforts while the proceedings are underway; A fresh start for financial planning; Discharge of specific types of debt; and.

What happens if you ignore a lawsuit?

If you ignore a court action, it's likely that a judgment will be entered against you for the amount the creditor or debt collector claims you owe.

How to collect a judgment?

Judgments give debt collectors much stronger tools to collect the debt from you. Depending on your situation and your state’s laws, the creditor may be able to: 1 Garnish your wages 2 Place a lien against your property 3 Move to freeze or garnish all or part of the funds in your bank account

What is a judgment in a court case?

A judgment is a court order.

Can a judgment be changed?

A judgment is a court order. Only the court can change it. It's very difficult to get a judgment changed or set aside once the case is over. You have a much better chance to fight a collection in court if you defend the case than if you wait until a judgment is entered against you.

How long does it take to respond to a creditor's complaint?

You Respond. The summons should set a timeframe for when you need to respond to the creditor’s complaint, but it’s usually within 30 days or less. If you want to fight the lawsuit, your response should cite any and all applicable defenses.

What happens if a creditor doesn't respond to a motion for summary judgment?

Summary Judgement. If your response didn’t do an adequate job offering a defense, the creditor may ask the court to issue a summary judgment and rule in their favor. You should have an opportunity to file a response to the creditor’s motion for a summary judgment.

What happens if you don't respond to a judgment?

If you don’t respond in the given timeframe, the creditor can then ask for a default judgment. If the court agrees, the creditor has essentially won the case and will be able to collect the judgment amount, usually through a wage garnishment .

What is a summons in a lawsuit?

The summons is basically a notification that you’re being sued, and should provide some direction on the steps you need to take to address this.

What happens if you fall behind on a debt?

You fall behind on a debt. Too far behind to ever catch up. You get plenty of calls asking for payment. There are letters reminding you how delinquent your account has become. Eventually, your creditor may give up on you and send your account to collections, where the letters and phone calls only get worse.

What happens if there are no facts in dispute and no adequate defense?

If there are no facts in dispute and no adequate defense, the judge will likely side with the creditor, awarding them the judgment and ending the lawsuit.

What happens after a trial date?

Once a trial date has been set, you will need to appear in court (preferably with some form of qualified legal representation) and plead your case. A judge or jury will hear both sides and rule in favor of either the plaintiff (your creditor) or the defendant (you).

What happens if you get sued by a creditor?

If you receive a letter that you’re being sued by a creditor, it can be terrifying. You may think you’re about to lose everything since you can’t afford to pay off your debt. Or you may be thinking about your wages being garnished for years to come and how that will affect your current lifestyle. You may also be thinking about all ...

What to do if creditor doesn't agree to settlement?

Once you’ve taken all of these steps, and if the creditor does not agree to a settlement, be sure you show up for your appointed court date to dispute your case before a judge and show proof of your income.

What to do if you are behind on your credit?

If you’ve begun to fall behind on your debts and you’re worried about the potential consequences, take an hour to speak with a trained credit counselor. They can help you assess your situation and discover resources to help you overcome your current challenges.

What to do if you don't hire a lawyer?

Even if you don’t hire one, it’s a good idea to at least have a consultation with a lawyer that specializes in collection lawsuits. Gather all the knowledge you can about how long you have to file a response and how a judgment can impact you. It’s important to know your options.

What happens if you admit you are liable?

If you admit you’re liable from the start, you’re admitting full responsibility and may have a difficult time settling for a lower amount in court. Instead, you may be better off not accepting liability and gathering more information.

Can you settle a debt before going to court?

Because of this, they may be more interested in settling instead of going to court. If they can prove you owe the full debt and if the statute of limitations hasn’t expired, discuss a settlement offer with them before going to court.

Can a lawsuit go forward without you appearing in court?

The lawsuit will go forward with or without you appearing in court and if you’re not there to defend yourself, the judgment will very likely go against you. Once this happens, your options become extremely limited because the court has already determined that you owe the full debt and any fees. 2.

Who can represent you in personal injury litigation?

Any attorney who is versed in personal injury litigation can represent you. Consult with a few and hire the one you are most comfortable with and confident in.

What does it mean when a lawyer is listed as an insurance defense lawyer?

If a lawyer is listed as an insurance defense lawyer, they handle your type of case although usually on contract with an insurance company. Warning: it will probably not be cheap to resolve. You might want to see what they... 0 found this answer helpful. found this helpful.

Do attorney answers establish a client relationship?

Attorney's answers to questions are for general purposes only and do not establish an attorney-client relationship.

What are some actions of a creditor that substantiate a law suit?

Some actions of a creditor that substantiate a law suit are: failure to validate a debt; calls you at work or very late at night; erroneous reporting of your credit history; and, refusing to note partial payments on your credit. Most of the time the creditors don’t bother showing up, and why would they?

How to file a small claims claim?

Do not ever file for the state maximum for loss, always file it for a smaller amount. To file a claim, just go to the county courthouse and get the appropriate forms. Make sure to follow all the legal steps for filing this claim, including notifying the other party. Every state has different forms but they are all pretty self explanatory. Generally, there will be a section where you will insert your claim, make sure to ALWAYS include: REMOVAL OF DEROGATORY DEBT from all three credit bureaus; TransUnion, Experian and Equifax along with a dollar amount. This is super important. Without this you don’t really gain anything.

What happens if you don't show up on your credit report?

If they don’t show up you automatically win and receive a judgment of removal you can send to the (3) credit bureaus. By law the credit bureaus will now have to remove the debt from your credit report, whether it’s valid or not. Also, see the HIPPA section below for medical debt. Get proof (most of the time you don’t need it) ...

What happens if a hospital doesn't show up for a judgment?

Now if they don’t show up, you automatically win and the courts will give you your judgment (what you asked for). HIPPA laws are very strict. If you validated your debt and the collection agency provided a list of your debt from the hospital or doctor they violated your HIPPA rights.

Can you win a HIPPA case?

Winning a HIPPA case is super easy and most of the time they won’t show because they know they broke the law. Just remember, suing a collection company or creditor is easy and you don’t need an expensive attorney. The cost to benefit is usually exponential.

Do you have to notify the creditor of a collection?

Once your claim is submitted you may have to notify the creditor or collection company. This is the easy part. Don’t bother tracking them down too much, a lot of collection companies change addresses often. And it’s in your advantage if they never receive it.

Can you sue a collection company?

Just remember, suing a collection company or creditor is easy and you don’t need an expensive attorney. The cost to benefit is usually exponential. If you have a debt that’s hurting your score by 50 points or more and they keep validating this is honestly your last hope. I’ve seen cases over $10,000 that the creditor nor collection agency never showed and the debt was relieved, it can be that easy. Sure it’s more work for you but to have an extra 50 points on your credit or better interest rate on your car or home it’s worth it. Never give up fighting!