With the pandemic caused much destruction across the globe, jobs are shutting down and people are not making as much money as they have in the past. Consequently, many find themselves soon swimming in a lot of debt and may even begin receiving threatening letters from their creditors. When the debtors can not pay because of not having the finances to take care of their bills, the creditor may actually hire someone to file a debt collection lawsuit against them. Not wanting to get overwhelmed by a mountain of debt, there are at least seven things that can be done when facing a lawsuit because of a debt collection.
Things to Recognize about Debt Collection
Many people have fallen prey to the lure of debt which entices them to enjoy things now by buying on time for later, and will quickly accumulate more debt than they have income. When these bills get far enough behind, debtors may find themselves being pursued and harassed by debt collection agencies who will use various tactics to try to recover the debt. When people find themselves being sued by Portfolio Recovery, they know their debt situation is in serious jeopardy and they need to quickly come up with some things to do to handle the matter. Whatever they do, it must be done quickly and efficiently or the debtor may face serious trouble.
Things to Do When Facing a Debt Collection Lawsuit
Having to deal with a debt collection lawsuit is not as uncommon as many may think, as more than 70 million people in America have dealt with such. When such things occur, debtors make a mistake by ignoring the matter, but the smartest thing to do is to respond to the debt collecting agency. Another thing the debtor should do is challenge the debt collecting agency’s right to collect on the debt. Challenging the matter will cause the agency to provide proof of their claim, called the burden of proof.
More Things to Do When Faced with a Debt Collection Lawsuit
Another thing to do when faced with a debt collection lawsuit is to point to the statute of limitations, as the time to collect on the matter may have passed. The debtor also may have the option to file a counter suit, particularly if the debt collecting agency has overstepped its bounds. The debtor could also file a petition for bankruptcy which may protect him or her from having wages garnished or being levied against. Of course, a safe option is for the debtor to consider hiring an attorney or law firm to represent his or her interests in the debt collection matter.
Final Thoughts about Handling Debt Collection Lawsuits
It is important to address debt collection activities when contacted, otherwise, the debt collector or collection agency could get a court to file a judgment. After this, the judgment could lead to having the wages garnished, the bank account withdrawn from, and make the debtor’s credit score be impacted for a long time. Hiring an attorney or law firm could put the debtor at an advantage, as the legal counselor may be able to find some loopholes with the debt that is owed. The worst thing to do is to simply ignore the matter.
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