How to Defend a Debt Collection Lawsuit

Struggling with debt can be extremely difficult under any circumstances, yet learning that you are facing a debt collection lawsuit can be considerably more complicated than dealing with debt collectors alone. The Consumer Financial Protection Bureau (CFPB) estimated that about 70 million Americans have had to deal with debt collectors at some point in their lives. Moreover, “around 25% felt threatened during their dealings with such agencies,” according to a recent article in Credit.com. While the Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using certain language on the phone with debtors and from making threats, many debtors face this kind of behavior from debt collectors anyhow.

While the FDCPA prohibits debt collectors from making threats to debtors about physical harm or criminal arrest, debt collectors can file lawsuits against debtors when the claim is not time-barred. What should you do if you are served papers for a civil lawsuit that a debt collector has filed against you? The Credit.com article discusses some of the following options for defending a debt collection lawsuit.

Hire an Oak Park Consumer Protection Attorney to Develop a Strategy
If you are facing a debt collection lawsuit, the first thing you should do is hire a consumer protection lawyer to help with your case. Your lawyer can help you to determine whether the debt collection company actually is permitted to sue you and whether the statute of limitations may mean that your claim is time-barred. Even if the lawsuit is legitimate and the debt collector can move forward with the claim against you, your attorney can work with you to develop a strategy to defend the lawsuit.

Respond to the Debt Collection Lawsuit
You will only have a certain amount of time to respond to the lawsuit. If you do in fact owe the debt for which you are being sued, it is important to know that the debt collection company may be able to obtain a default judgment against you if you do not properly file a response. By getting in touch with a lawyer as soon as you are served with papers, you can ensure that you file an answer or response in a timely manner.

Show That the Lawsuit is Time-Barred
If a certain amount of time has passed since you incurred the debt and stopped making payments, the clock on the statute of limitations may have run out, and the lawsuit may be time-barred. When a lawsuit is time-barred, the debt collector cannot file a lawsuit against you. Generally speaking, Illinois law has a five-year statute of limitations on debt tied to an unwritten contract and a 10-year statute of limitations on debt tied to a written contract.

File for Consumer Bankruptcy
If you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, the automatic stay will prevent the debt collector from moving forward with the claim against you. In addition, by filing for bankruptcy, you may be eligible to have the debt discharged for which you are being sued.

Contact a Consumer Protection Lawyer in Oak Park
Do you need assistance handling a debt collection lawsuit? Whether you want to move forward by filing a response or consider filing for consumer bankruptcy, an Oak Park consumer protection attorney at our firm can help. Contact the Emerson Law Firm today to get started on your case.



See Related Blog Posts:

7th Circuit Says Debt Collector Can Charge Percentage-Based Fees

Bankruptcy Mistakes Versus Bankruptcy Fraud

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