Steps to Take After Being Sued by a Debt Collector

Steps to Take After Being Sued by a Debt Collector

April 8, 2020

Debt collectors are widely considered a scourge—even if their goal is noble, their methodology often leaves a lot to be desired. Those who have dealt with debt collectors calling their friends and family members and threatening lawsuits or to garnish their wages know just how obnoxious—and downright frightening—dealing with debt collectors can be.

If you’re dealing with a debt collection lawsuit in Montgomery County, TX, it’s smart to contact an attorney. While you’re waiting for them to review your case, here is an overview of what to do next:

  • Check the debt: The very first thing you need to do is check the documentation that the debt collectors have sent you—when was the debt incurred, when was the last payment made, is the amount correct, who are the cosigners and what is the statute of limitations? In many cases, debt collectors try to sue well past the statute of limitations, banking on the person being too scared or not knowing how to contest the issue.
  • Respond to the suit: If you’re legitimately sued by a debt collector, you’ll have between 20 and 30 days to respond. Don’t ignore this because you can’t pay—it could cause a judge to enter an automatic judgment against you. This could result in your wages being garnished, bank accounts being seized and more. It’s better if you respond to the debt lawsuit in Montgomery County, TX, either on your own or with the help of an attorney—and you may be able to get an extension for another 30 days, too.
  • State your case: If you can challenge the case in any way, shape or form, you should do so with the help of an attorney. You may also be able to negotiate a lower payment agreement, partial debt forgiveness and even a payment plan. Just make sure you only agree to something you can actually pay, because if you default, you can be sued again.
  • Consider bankruptcy: Finally, as a last resort, consider filing for bankruptcy. When you have a bankruptcy case pending, creditors are banned from collecting on your debts until the case is over and your debts are discharged. It’s never an ideal situation, but it’s certainly better than not being able to pay your bills because your wages have been garnished.

Ultimately, the bottom line in dealing with debt collectors is to make sure you never ignore them—doing so could impact you in a variety of unpleasant ways.

Deal with debt collection lawsuits in Montgomery County, TX

Debt collection lawsuits can be frightening, but they don’t have to be life-altering, and the team at James R. Jones, Attorney at Law can help. We’re experienced in dealing with debt collectors and can guide you through the process. We are licensed in all state courts, as well as the United States District and Bankruptcy Courts in the Southern District of Texas and the United States Court of Appeals for the 5th Circuit. Call us today for a free consultation.

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