what to say to debt defense attorney

Typically, a lawyer debt collection letter may be used to: Inform a client that their payment has surpassed the due date and is now overdue. Start the process of setting up a repayment program with a client who cannot pay in full. In certain situations, initiate legal proceedings when a client refuses to pay.

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How do I choose a lawyer to settle my debt?

A debt collection defense attorney can help to take the fear and intimidation out of the legal process and stand by your side to protect your rights. You may be scared by the legal and technical terms that the creditors use and decide to pay them out of fear or concern for ending up with a judgment, but not everything that collection companies ...

How do I respond to a debt lawsuit?

 · If you’re named as the defendant in a debt collection lawsuit, you have the right to good legal advice and effective representation from a debt defense attorney at the Chicago Consumer Law Center. Find out more. Call us at (312) 858-3240 or use the contact form here on our website to schedule a free Strategy Session.

What do lawyers look for in a debt collection lawsuit?

 · In a debt settlement, a lawyer may have contingency fees, which means the lawyer receives a percentage of money you recover. A debt lawyer can charge an overall flat fee for a straightforward process like a simple bankruptcy. A debt lawyer can also charge by the hour, with the rates varying based on the lawyer’s experience level and knowledge ...

Why do I need a debt lawyer?

 · You have to respond via legal briefs called an Answer. Some tips for doing so include: Don’t admit liability for the debt; force the creditor to prove the debt and your responsibility for it. File the Answer with the Clerk of Court. Ask for a stamped copy of the Answer from the Clerk of Court. Send the stamped copy certified mail to the plaintiff.

How do you defend against debt collectors?

7 Ways To Defend a Debt Collection LawsuitRespond to the Lawsuit or Debt Claim. ... Challenge the Company's Legal Right to Sue. ... Push Back on Burden of Proof. ... Point to the Statute of Limitations. ... Hire Your Own Attorney. ... File a Countersuit if the Creditor Overstepped Regulations. ... File a Petition of Bankruptcy.

How do I respond to a collection letter from a lawyer?

Four Steps to Take if You Received a Debt Collection Letter From a LawyerCarefully Review the Letter to Determine the Claim. ... Consider Sending a Debt Validation Request. ... Gather and Organize All Relevant Financial Documents and Records. ... Be Proactive: Debt Does Not Go Away on its Own.

How do you negotiate a debt settlement after being served?

A debt collection lawsuit can potentially be resolved with debt settlement. You can do this on your own or hire a debt settlement attorney to help. You can make a payment plan with the creditor to pay off the sum of the debt or partially pay the sum in a lump-sum settlement.

What should I say when trying to collect a debt?

I do not have any responsibility for the debt you're trying to collect. If you have good reason to believe that I am responsible for this debt, mail me the documents that make you believe that. Stop all other communication with me and with this address, and record that I dispute having any obligation for this debt.

What is the magic 11 word phrase?

Among the insider tips, Ulzheimer shared with the audience was this: if you are being pursued by debt collectors, you can stop them from calling you ever again – by telling them '11-word phrase'. This simple idea was later advertised as an '11-word phrase to stop debt collectors'.

How do I write a hardship letter to a debt collector?

Tips for Writing a Hardship LetterKeep it original. ... Be honest. ... Keep it concise. ... Don't cast blame or shirk responsibility. ... Don't use jargon or fancy words. ... Keep your objectives in mind. ... Provide the creditor an action plan. ... Talk to a Financial Couch.

What percentage should I offer to settle debt?

Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.

What does a debt collector have to prove in court?

The creditor has to prove who the borrower is These include: Where there is a dispute as to the identity of the borrower or hirer or as to the amount of the debt, it is for the firm (and not the customer) to establish, as the case may be, that the customer is the correct person in relation to the debt.

Can you be sued while in debt settlement?

The short answer is YES, you can be sued even if you have a debt settlement or debt consolidation agency working for you. In Minnesota, debt settlement or debt consolidation agencies are not usually lawyers. They promise to fix debt problems, but they often can't do it quickly enough to stop a lawsuit against you.

Can you dispute a debt if it was sold to a collection agency?

Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you don't believe you should pay the debt, for example, if a debt is statute barred or prescribed, then you can dispute the debt.

How do I write a letter to write off a debt?

I am sorry that you are unable to write off the outstanding debt. The majority of my creditors have agreed to write off the debts I owe. They have accepted that my circumstances mean that I cannot realistically maintain payments of any kind. I would therefore be grateful if you would reconsider writing off this debt.

How do you respond to a creditor?

Tips for Filing a Legal Response to a Debt LawsuitNever admit debt liability.Always make the creditor prove the debt.Force the creditor to prove your responsibility for the debt.File the official Answer with the Clerk of Court.Ask for a stamped copy of the Answer from the Clerk of Court.More items...•

Can A Debt Lawyer Help My Court Case?

A debt lawyer is extremely valuable if your debt situation causes you to go to court. Debt collectors can take consumers to court to recover money...

What Can A Debt Lawyer Do For Me If I File For Bankruptcy?

A debt lawyer is almost mandatory when filing for bankruptcy.A debt lawyer who specializes in bankruptcy can explain the differences between Chapte...

How Much Does It Cost to Hire A Debt Lawyer?

When you are swamped with debt, hiring a lawyer can add to the pile of expenses you already have. The right lawyer, however, can steer you though t...

When You Should Hire A Lawyer

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Is Hiring An Attorney Worth It?

Lawyers cost money, so it is wise to consider whether retaining one in a debt case is worth the cost. Face it, you already have financial problems,...

What to Expect from A Lawyer

Lawyers can be expensive, so if you decide to hire one, you should talk fees early on. Lawyers will either charge you an hourly rate or a contingen...

What is debt buyer?

If you’re getting sued by a debt buyer, we likely can win your case. A debt buyer is a company that pays pennies on the dollar for old debt, then sues consumers for profit.

How long does a debt collector have to collect?

Judgments can last for years and allow debt collectors to try to engage in aggressive collection tactics for up to 20 years.

Does debt defense offer money back?

We offer money back guarantees for our debt defense service. If we don’t meet your goals, whether that is settlement or dismissal of your case , we’ll refund any attorney fee you pay.

Does hiring an attorney increase your chances of success?

At least one study suggests that a debtor’s chance of success increases significantly when hiring an attorney . A study entitled “Junk Justice,” which analyzed thousands of collection lawsuits, found that debt buyers recovered 62% of the debt against unrepresented parties, but recovered just 21% of the debt against represented parties. “Overwhelmingly, de [btors] with an attorney succeed in having the [ir] case dismissed.”

Do you have to go to court in a divorce case?

In the vast majority of cases, you won't have to attend court.

Is it worth hiring an attorney?

It depends. Sometimes, hiring an attorney to defend your case or obtain a settlement is not worth the money. If we think you won’t benefit from our services, we’ll let you know. That said, hiring an attorney in the right circumstances can be valuable.

Who is suing you?

Who's suing you (credit card company, debt buyer, finance company, bank, loan trust, debt servicer, or other collector) Where you're getting sued (magistrate court or common pleas court) The attorney or law firm that filed the lawsuit. The county in which your lawsuit is pending. The type of account at issue (credit card, personal loan, auto loan, ...

What is debt defense?

A debt defense lawyer helps defend consumers against third party debt collectors and original creditors that may be attempting to collect more than what the consumer’s balance was before default. Consumers often end up paying more than what they actually owe or pay third party debt collectors when they may not actually owe them anything.

What do you settle for when you owe a debt?

What you settle for is what you pay. If you owe a substantial amount of debt, you should at least respond to the complaint to give you time to work out a settlement before a judgment is entered and collection efforts start. We recommend that you call our team of debt defense lawyers for many reasons.

Do you have to pay all the debt you owe?

If you do owe the debt, you do not necessarily have to pay all of the debt owed. Our debt defense attorneys have significant experience working with the lawyers who represent credit card companies and other creditors. We are very experienced in presenting your situation to the creditor’s attorney and have gained a credible reputation among the creditor’s attorneys that enables us to obtain the best result available for you in resolving your case.

How to respond to a debt collector lawsuit?

The moment that you receive a lawsuit from a debt collector, it is best to call our debt defense lawyers. Time is of the essence with court deadlines. There is a short time to respond to a lawsuit, and the most important thing is to respond before the deadline. Otherwise there will be a default judgment entered, which basically means that nobody responded to the lawsuit and the debt collector will be declared the winner by default. You will have no chance to dispute the debt and the creditor will start collecting immediately. While it is still possible for our debt collection defense attorneys to settle the judgment in a way favorable to you, it gets more and more difficult the longer you let it go – and sometimes, when they are garnishing your wages, the creditor or debt collector will no longer agree to any reduction or reasonable payment terms.

What to do if you believe a lawsuit is wrong?

If you believe that the lawsuit they have filed is incorrect, you should respond in the form of an Answer to avoid further conflict. A Debt Collection Defense Attorney can prepare these answers and make sure your rights are protected in the lawsuit. The moment that you receive a lawsuit from a debt collector, it is best to call our debt defense ...

What happens if a debt collector oversteps the boundaries?

When collectors overstep their boundaries in how they contact you, they could be held liable for the damages they have caused to you. If creditors have engaged in illegal collection practices by resorting to threats and intimidation, this conduct could result in reducing or eliminating the debt owed entirely, in addition to additional damages.

What to do if you are facing a lawsuit from a debt collector?

If you are facing a lawsuit from a debt collector, our debt collection defense attorneys can help you by making sure that the creditors are asking for the right amount and that they actually have the right to collect.

What is a default judgment in a debt collection lawsuit?

If you do, and you take no action at all, the court may award the debt collector what is called a default judgment, which means that the debt collector automatically wins the lawsuit.

What happens if you default on a judgment?

With a default judgment the debt collector can garnish your wages, freeze your bank accounts, or place a lien on your home or other property.

How rare are debt collection lawsuits?

Trials in debt collection lawsuits are rare. About 90% of debt collection lawsuits conclude with a default judgment when the defendant doesn’t appear in court. Roughly 8% end when a defendant enters into a payment plan for about the full amount.

How much debt does Illinois have in 2019?

The total credit card debt in Illinois in 2019 was around $42 billion, and the total student loan debt surpassed $56 billion. The average Illinois borrower now owes more than $35,000. With figures like that, it’s no surprise that debt collection lawsuits are common in the Chicago area.

Can a collection lawsuit be dismissed?

We’re able to get the vast majority of our collection lawsuit cases either dismissed, where our clients pay nothing, or settled for a fraction of the amount. How your case is resolved depends on a variety of factors such as the debt collector/original creditor suing you, their law firm, and their documentation among other things.

What is debt lawyer?

A debt lawyer is someone with the knowledge, credentials and skill to help consumers struggling with debt sort through their financial troubles. Representing clients in cases against debt collectors is a form of consumer law, the branch dedicated to protecting consumers against unfair trade and credit practices.

Why do people need debt lawyers?

Those people are seeking help from debt lawyers to fight back against aggressive debt collectors in court. If a debt collector is relentless in trying to recover money you owe, a debt lawyer is a good resource to help you understand your rights and provide a path to escape harassment or illegal tactics.

What happens if a creditor has no standing?

If there was a statute of limitation on the amount of time the creditor could collect the debt and that time has expired , the creditor has no legal standing and the court will rule in your favor. Other times, creditors file the case in the wrong court or don’t have the legally required paperwork to bring suit.

What does it mean when a creditor threatens you?

A creditor is threatening you with a lawsuit or has filed suit. Debt collectors are treating you in a way that you feel is abusive. Your creditor has repossessed your car and might be threatening you with a collection suit.

What do debt attorneys do in bankruptcy?

With a bankruptcy, a debt attorney will help you prepare all the required paperwork you need in your case. They can answer your questions and give you a basic rundown on rules and procedures in the courtroom.

Why are debt lawyers so popular?

Debt lawyers have become more prominent because household debt in the U.S. has jumped 11% over the last decade to an average of $134,643 (including mortgages) and credit card and auto loan debt are going over the $1 trillion, mark.

Can a lawyer file a counterclaim against a creditor?

Perhaps you have grounds for a counterclaim against the creditor. If the creditor violated legally prescribed procedures for collecting debt – say the credito r illegally harassed you – a lawyer might be able to file a counterclaim against the creditor. There are also standard legal defenses that could work.

How to respond to a debt lawsuit?

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.

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

If you don’t respond, judges aren’t going to seek this information on their own and the court will consider your silence on the matter as an admission of responsibility for the debt. However, if you ask for documentation in writing or during a hearing, the judge is likely to back your request.

What happens when you get served papers?

One thing that happens when you get served papers for debt is that the burden of proof rests heavily with the plaintiff. That means the person suing you has to prove:

What happens if you miss the deadline for a judgment?

2. Challenge the Company’s Legal Right to Sue.

What to do when you don't admit liability?

Don’t admit liability for the debt; force the creditor to prove the debt and your responsibility for it.

How many people have dealt with debt collectors?

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.

How to get judgment overturned?

You can appeal a judgment — and one of the ways to get it overturned is to demonstrate that they did not properly notify you of the lawsuit. You can find more on what to do post-judgment here:

What happens if a creditor does not serve you correctly?

If the creditor did not serve you correctly, then the claim cannot go forward. If debt is too old to be enforceable. Every state imposes a statute of limitations for when a creditor must initiate a lawsuit. The time starts running from when you first failed to make a required payment. In some states, any payment will restart the statute ...

What happens if you get discharged from bankruptcy?

If the debt was included in your bankruptcy schedules and you received a discharge, you are no longer responsible for paying the discharged debt. This collection attempt may be an FDCPA violation.

Can a creditor sue you for a violation of the Fair Debt Collection Practices Act?

Whether plaintiff has violated the Fair Debt Collection Practices Act. If a creditor sues you, you may be able to assert violations of this Act as a countersuit or setoff in the action that is proceeding against you.

Can you be sued for unpaid debt?

The good news for those who are sued over unpaid debt is that there are many possible defenses that can be asserted. You do not have to simply lie down and accept the suit without fighting back.

Can a creditor sue you if you don't have standing?

If creditor does not have standing to sue you. A creditor can only pursue a lawsuit against you if a relationship exists. If you assert that a creditor does not have standing to sue you, the creditor must prove that it has the right to do so. When the debt has been sold, sometimes multiple times, it can be difficult for the creditor to meet this obligation.

Can you defend yourself in a lawsuit?

Putting Up a Defense In a Lawsuit Over Unpaid Debt: 8 Ways to Defend Yourself. Any time a person gets sued, it is not a pleasant experience. This is especially true when you have never been sued before and do not know what to expect from the process. The good news for those who are sued over unpaid debt is that there are many possible defenses ...

Can a debt be sold multiple times?

When the debt has been sold, sometimes multiple times, it can be difficult for the creditor to meet this obligation . Whether Payment was made on the debt, either in part or in full. Even if you paid another party for the debt, payment is typically a valid defense to a collection action.

How to write a debt collection letter?

Typically, a lawyer debt collection letter may be used to: 1 Inform a client that their payment has surpassed the due date and is now overdue. 2 Start the process of setting up a repayment program with a client who cannot pay in full. 3 In certain situations, initiate legal proceedings when a client refuses to pay.

What to do if client refuses to pay?

Start the legal process. Unfortunately, in some situations, you may decide to pursue legal action if a client refuses to pay. For example, you may be able to report the non-paying client to a credit reporting agency, hire a collections agency, or file a lawsuit.

How to avoid unpaid bills?

The first step to avoiding unpaid client bills is to set up a solid collections process. That way, you can make it easy for clients to pay in the ways that best suit them. If you still don’t receive payment, you may want to consider creating a professional, clear, and straightforward lawyer debt collection letter.

What is debt collection letter template?

By creating a debt collection letter template, you can easily create a custom letter for any clients with outstanding payments. Having a template helps ensure your lawyer debt collection letter includes all essential details.

How to address a letter to a client?

Include your full name, company name, and mailing address. Address the letter to your client by their full name.

Can a client be short on cash?

Sometimes, a client may short on cash. They may have the intention to pay you, but just can’t pay at the moment. In this challenging situation, they might not know how to communicate this.

Do lawyers need a collection letter?

Before reaching the point where a collection letter is necessary, lawyers should ensure that they’ve set up a sound system for their law firm billing. The goal for attorneys is to get paid for the work they complete—while maintaining good relationships with their clients.

What happens if you don't have proof of debt?

If you don't, you are going to lose anyway. So fight. The reality is most debt buyers just don't have the proof they need and so they will drop the case and stop trying to collect on that old unenforceable debt. The reason for this has to do with the sloppiness of the data when a creditor sells a bad debt to a debt buyer or farms it out ...

What would happen if people just got some good legal advice about handling the suit rather than doing nothing?

If people just got some good legal advice about handling the suit rather than doing nothing there would be significantly fewer consumers facing judgments and wage garnishments after losing in court by default.

Can you enforce a debt that has been turned over to a new company?

I've also watched debt buyers go after consumers long after the statute of limitations has expired and the debt cannot be legally enforced.

What percentage of consumers sued never show up for court?

But what is really happening is about 90 percent of consumers sued just never show up for court so they lose by default when they could have easily won and had the debt completely eliminated. Those folks are throwing away a perfectly good opportunity to make a debt go away because they are scared. If you have an old debt ...

Is there a substitute for good legal advice?

There is no substitute for good legal advice so find a local attorney who is licensed in your state and spend some money to get good advice before you go to court. Otherwise you are just screwing yourself into a debt you never should have paid. Advertisement. Get Out of Debt Guy - Twitter, G+, Facebook.