What is a contract debt collection lawsuit?

A collection lawsuit occurs when a creditor files a petition with the court to begin a lawsuit against a consumer who owes them money. Collection lawsuits can be expensive and time-consuming. Most creditors will opt not to go this route when trying to collect an alleged debt repayment.

When to respond to a breach of contract lawsuit?

One common method is to file an Answer. This Guide provides information about filing an Answer to a Breach of Contract case. You have 30 days from the day you were personally served to file a written response in proper legal form.

Do you fear a debt collection agency lawsuit?

The type of language some collection agencies use can spark fear. When you’re served with a lawsuit and threats to your wages, bank accounts and other assets, the urge to ignore the issue and hope it miraculously goes away can be strong.

What’s the best way to defend a debt collection lawsuit?

Some tips for doing so include: Don’t admit liability for the debt; force the creditor to prove the debt and your responsibility for it. File the Answer with the Clerk of Court. Ask for a stamped copy of the Answer from the Clerk of Court.

Can you use a no contract dispute for debt collections?

Even if a collection agency can’t comply with your request for validation of the debt they can sell or assign the debt to another collection agency which starts the process all over.

When does a debt collection agency Sue You?

While each case is a little different, and different states and courts have different rules, here’s what generally happens if a collection agency sues you for nonpayment of a debt. A debt collection lawsuit begins when the collection agency files a “complaint” (sometimes called a “petition”) in court.

What happens if you dispute a debt collector?

In some instances, disputing a valid and active debt collection with the credit bureaus may spark the debt collector to take action on your debt. For example, they may begin calling or sending letters or even file a lawsuit against you if the debt is within the statute of limitations.

How to defend yourself in a debt collection lawsuit?

File the Answer with the Clerk of Court. Ask for a stamped copy of the Answer from the Clerk of Court. Send the stamped copy certified mail to the plaintiff.