Civil Litigation

Why you should consider hiring a lawyer when you have debt collection charges

When a person or an organization finds themselves facing a debt collection lawsuit, they need to respond to the suit as quickly as possible. Not responding to a lawsuit for too long could make the court rule against the debtor.

Getting sued by a creditor can be extremely stressful, especially for individuals who aren’t in a stable financial position. Even businesses can face debt collection lawsuits, and these lawsuits could negatively affect the organization’s reputation.

In most cases, a creditor may try to communicate with the debtor to come to a settlement since debt collection lawsuits can be costly and they could potentially delay the payment of the debt even further.

When a creditor does decide to sue, it’s usually when the debtor doesn’t pay the money they owe on time and all attempts to reach out to the debtor go unanswered. In most cases, a creditor may impose a debt collection lawsuit against the debtor if the money owed isn’t paid back in six months.

The person or entity being sued can choose to represent themselves in court, but even for a small debt collection lawsuit, procuring help from a lawyer can give the defendant an advantage and increase their chances of turning the ruling in their favor.

Here’s why you should consider hiring a lawyer to assist you with a debt collection lawsuit.

You need to get things in order quickly

When a person or an organization finds themselves facing a debt collection lawsuit, they need to respond to the suit as quickly as possible. Not responding to a lawsuit for too long could make the court rule against the debtor.

In the state of Pennsylvania, a person or organization is only given 20 days to respond to a lawsuit, however, if the debtor has little to no experience in dealing with legal issues like this, they may take too long to get things in order and exceed the due date.

With the help of a lawyer, the debtor can get everything they need for the case in order quickly. Also, lawyers can offer guidance on the legal process and whether or not the debtor defending themselves against the lawsuit is the right course of action.

You have a counterclaim against the debt collector

A counterclaim is a claim filed against the opposing party in response to a claim they made earlier. This isn’t a defense against the lawsuit imposed on the defendant, but filing a counterclaim may coax the debt collector to take back their lawsuit.

For example, if the creditor was continuously harassing the debtor to pay the money they owed and went against the Fair Debt Collection Practices Act (FDCPA), the debtor may have the right to issue a counterclaim. 

Counterclaims are a powerful tool for a defendant in a debt collection case. These claims could potentially force the plaintiff to drop the debt collection case entirely, and the defendant could also achieve a money judgment against the plaintiff.

Despite this, counterclaims can be difficult to win by the defendant alone, however, if they have a lawyer representing them in court, they may have a much better chance of them winning their counterclaim.

They can help you avoid debt collection lawsuits

Sometimes the best way to defend against a debt collection lawsuit is to avoid it entirely. Not all creditors are keen on taking a debt collection case to court, most prefer to just come to a settlement with the debtor out of court.

If the debtor is not in a good financial position, reaching out to a lawyer is the first thing they need to do. Lawyers can help their clients understand what options are available to them that can protect them from debt collection lawsuits, such as filing bankruptcy.

Also, lawyers can negotiate with the creditor on their client’s behalf and help both parties come to a reasonable agreement, without the need for court intervention.

Get a lawyer on your side today

Even a minor debt collection lawsuit can be a problem if you’re not sure how to handle it. Also, if you’re a business owner, these kinds of lawsuits can interfere with business operations and affect the company’s reputation if word of the case goes out.

If you’re dealing with a debt collection lawsuit, having a lawyer to support you can help you get the best possible outcome out of your case. At  Very Law, our team of lawyers will support you all the way through and do everything in your power to get you a favorable ruling.

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