If you are facing a debt lawsuit, you may want to seek the help of a debt defense attorney. Because? Well, maybe you don’t feel like you owe the money. You feel the amount is in dispute. Perhaps the other party did not meet its obligations to you. You think the creditor used illegal harassment tactics to try to intimidate you into paying. There are many laws that protect consumers from dishonest creditors and unethical contract collection companies.
Even if you owe the creditor money, often when a lawyer gets involved, they can negotiate a more favorable settlement agreement, since the creditor now faces getting nothing if they sue. In fact, if the creditor loses the case, he also loses the fees he paid to his lawyer.
When does it not make sense to hire a lawyer?
How to defend yourself against a claim from a creditor?
If you have no money in the bank and no assets, the creditor may get a judgment, but you will never be able to collect on it. If you find yourself in this situation, you are basically “trial proof” and there would be no point in hiring a lawyer to defend you and protect your money or property from him. If you do not appear in court, your creditor may get a default judgment, but you will have no way to collect the debt.
If the debt you are being sued for is relatively small, the attorney’s fees to defend against the lawsuit may be more than the actual amount owed. It might be easier and less expensive to just pay the creditor.
If your creditor is taking you to small claims court and you have proof that you do not owe the creditor money, you may decide that it is best to represent yourself. If you are not sure about this, it may be time to discuss the case with a debt defense attorney. Again, consider the amount in dispute and the cost of attorneys’ fees. Many debt defense attorneys will give you 30 minutes to discuss your case at no charge. Usually a 5-10 minute phone call is enough to make that decision.
If you know you rightfully owe the debt, you might try to settle with the creditor to save time and money. If a creditor gets a judgment against him, he could end up paying a lot more, since the judge could award him attorney and court fees.
Counterclaims against your creditor
You may have a legitimate counterclaim against the creditor. If you do, once you involve your attorney, the creditor’s attorney may be able to advise you to settle and avoid costly litigation. In fact, if you think you don’t owe money because they didn’t honor your agreement or deliver promised services, you may be able to counter-sue for damages. If you have such a dispute and are being threatened with a lawsuit by a creditor, it will definitely benefit you to get a good debt defense attorney. If the amount of money is enough to justify the attorney’s fees to defend you, then it is a good idea to contact a debt attorney as soon as possible.
What happens if you do nothing and your creditor gets a default judgment against you?
Many people who owe money avoid their creditors and their creditors go to court and get default judgments. The problem here is that the creditor will usually add attorney fees, interest, and court costs. The amount owed can skyrocket. As soon as the court makes that judgment, interest will begin to accrue until the money is paid in full. Your creditor will be able to garnish wages, place liens on real property, and find ways to legally collect the debt.
What if I have bills I owe but can’t pay and I’m about to be sued by multiple creditors?
If this is the case, it would be wise to talk to a bankruptcy attorney who can explain how bankruptcy works. If you are concerned about defending various claims from creditors, especially unsecured debts such as credit card debt, you should speak with a bankruptcy attorney. You may find yourself with more than you can handle. An experienced bankruptcy attorney can present all of your options. In the long run, you may want to pay off all of this debt with a Chapter 13 or Chapter 7 bankruptcy filing.
Despite the negative connotations that the word ‘bankruptcy’ carries, in many cases it is the best option. Solve all your problems at once. It can help you get back on solid financial footing faster than letting debt overwhelm you and completely destroy your credit. Of course, this is all general information. You see, everyone’s financial situation is different. This is why it pays to speak with a debt defense attorney or bankruptcy attorney before you begin to accumulate default judgments against yourself for unpaid debts.