If you’ve been presented with litigation over outstanding debts, you’re likely wondering what your options are. You might believe the only solution is to pay back the debt, even if you don’t have the means to do so. However, you have rights, and by working with an attorney, you may be able to pursue alternatives. The information below will provide a better understanding of how this process works and what you need to do.

What You Should Know About Debt Collection Litigation

Why Might a Lawsuit Be Filed?

If you have outstanding debt, the creditor won’t jump straight to filing a lawsuit. Before taking legal action, they’ll attempt to contact you through letters, phone calls, or online notices to resolve the issue. If this step doesn’t work, they may seek the help of a third-party collector. If all attempts to receive payment are unsuccessful, the creditor then has the right to file a lawsuit. 

What Happens Once a Lawsuit Is Filed?

If a lawsuit has been filed against you, swift action is crucial. You’ll only have a limited time to respond to the lawsuit before a judgment is placed against you. If you don’t act promptly, the creditor has the right to put a lien on your home or garnish any funds you have available. Your response can consist of immediate payment or filing an official answer in court to start the litigation process. From there, your creditor may attempt to settle outside of court. This is often the case if the creditor feels they’ll have a difficult time proving their case or if they know you don’t have many assets available. 

How Will a Lawyer Help?

First, the lawyer will maintain timely and accurate communication with the collectors throughout all stages of the proceedings. This will ensure you have every option available to you for handling the lawsuit, such as negotiation. If you enter talks with the collection agency, your lawyer will do everything in their power to reach terms you feel comfortable with. In the event you and the collector are unable to reach a satisfactory settlement, the attorney will continue to represent you during arbitration or litigation, building a solid case in your defense, protecting your best interests, and helping you establish a manageable payment plan. 

If you’ve been presented with a lawsuit over unpaid debts, turn to Gilbert P. Kaback Attorney at Law in Colchester, CT. Attorney Kaback has over 22 years of experience providing clients with top-quality legal counsel. He’ll provide sound representation throughout all steps of the litigation process, so you stand the best chance of securing a favorable outcome. Visit his website to learn more about his practice areas, and call (860) 537-0874 to schedule a meeting today.