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If you have a credit card or other forms of unsecured debt, creditors may decide to file a collection lawsuit against you. If you find yourself facing such circumstances, it’s crucial to understand your options for contesting the charges and defending your finances. Consult with a lawyer who can recommend the best course of action to take in your specific situation. Here are a few effective methods for fighting collection lawsuits.

5 Ways to Defend a Debt Collection Lawsuit

1. Submit a Proper Response

When you first receive a notice you’re being sued for debt collection, it’s essential to respond with a court filing. Failure to do so results in an automatic judgment against you. This means they could start garnishing your wages, taking money from your bank account, or attaching on new fees.

2. Prove the Statute of Limitations Has Expired

Creditors have only a certain length of time to file a lawsuit to collect the debt. This period is referred to as a statute of limitations. Once this runs out, they are no longer within their rights to sue. If you believe the statute of limitations has expired, use this as a defense in your case.

3. File for Bankruptcy

collectionsIf you owe quite a bit of money, it might make the most sense to petition for bankruptcy. Depending on the type of documents you file, you will either be absolved of all your debt or given time to pay off a portion of it. Filing will immediately put a stop to the lawsuit process.

4. Ask for Proof of the Debt

The debt collectors bringing the lawsuit against you must prove you owe them money. Request to review the evidence they have to support their case. If they can’t provide accurate documentation, there’s a good chance the charges will be dropped or they’ll settle for a lesser amount.

5. Consider a Counterclaim

In some instances, you can show that a creditor violated the law in their pursuit of collection. This means you can file a counterclaim against them, citing an infraction against the Fair Debt Collection Practices Act. If you’re successful, they’re ordered to pay you damages and legal fees.

 

Debt collection lawsuits can be complex. It’s important to know your rights under the law and all your defense options before moving forward with this type of case. Arndt Buswell & Thorn S.C. has extensive experience with matters involving debt collection and a proven track record of success. Call (608) 269-1200 for Sparta or (608) 486-2324 for Bangor, WI, for reliable legal advice, and visit them online for more information. 

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