6 Things You Need To Know To Handle a Debt Buyer’s Lawsuit
Debt Buyers can make a lot of money by suing on the debts that they purchase. Often times, they buy debts from banks and other lenders simply write off the debt, paying pennies on the dollar. This is why there are so many debt buyers and why they make so much money. If you get sued, here are some of the things that you need to know about how to handle it.
1. File An Answer To The Complaint, Timely
You will not hear anything from the court about a hearing date unless you file an answer. Worse yet, if you don’t file an answer in, a timely, the court will enter a default against you meaning that the debt buyer will automatically get a judgment.
2. Hire a Lawyer To Defend You
We have a program at Michigan Consumer Credit Lawyers, where we may agree to defend from a lawsuit by a debt buyer if you get us your suit papers and a copy of your credit reports ASAP. We need to see your credit reports to see if the debt buyer is reporting the debt. If so, we may be able to help you at no out-of-pocket charge to you.
3. Debt Buyers Have a Lot Of Room To Negotiate
Remember, they bought your debt for pennies on the dollar. They are probably suing you for the full amount that you may owe. There is a great deal of room to negotiate the debt down.
4. They Want You To Default Because They Don’t Want To Go To Court
I know that you don’t want to either, but they have the burden of proof to show that you owe what they say you do. Frequently, a debt buyer does not have the right documents to show that: 1. They own the debt; 2. That you owe the balance that you do. Worse yet, they do not want to send someone to court to testify about the documents, because as debt buyers, they cannot testify to anything other than they purchased a debt. To prove that the amount is accurate, they also need an affidavit or a witness from the selling company to testify that the debt balance is accurate and that entries into the account were made at or near the time that the debt was incurred.
5. If You Make a Deal With a Debt Buyer, Get It In Writing
Do not pay them a dime unless you have a written and signed agreement before you pay them anything.
6. Be Sure That Any Deal That You Make Includes Removing Any Reference To The Debt Off Of Your Credit Report
They may say that they cannot change the credit reporting, but that would not be true. They certainly can change anything that they have been reporting to the credit bureaus.
Our Michigan Credit Repair Lawyers Can Represent You
Debt buyers frequently sue consumers to collect debts that they purchased. Just because they sue you for it does not mean that they can prove that they own the debt or can prove the balance that you owe.
If you have been sued by a debt buyer, we may be able to represent you at no out-of-pocket charge to you. Just get us your suit papers and a copy of your credit reports as soon as you can. You can reach us for more information at Gary@crlam.com or visit our website at Michigan Consumer Credit Lawyers.
Michigan Consumer Credit Lawyers
39111 6 Mile Road, Suite 142, Livonia, MI 48152