Debt Collection Lawsuit Process

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Debt Collection Lawsuit Process
The single most effective form of debt collection for any creditor or debt collector is the filing of a lawsuit. If a lawsuit is filed against you and you do not properly respond, you may wind up having a judgment against you. If there is a judgment against you, the collector or creditor no longer has to make a deal with you for debt settlement. In order to satisfy a judgment, a creditor can garnish your wages, garnish or seize funds from a checking or savings account, or place a lien on personal property. In addition, an unpaid judgment continues to collect interest at a state specified interest rate.
What do do if you are being sued
Read the summons. A summons is an official notification from the court that a lawsuit is pending against you. In order for there to be any judgment against you, a summons must be properly served on you according to the laws of your state. The summons will direct you precisely what to do and how much time you have to do it. Don't delay. Generally you do not have much time.
Contact a lawyer - contact us to see if we can help you protect yourself. Even if we can not, we will strongly urge that you contact an attorney within the county where the lawsuit is pending for guidance on how you can avoid a judgment
Lawyers are debt collectors
The lawyers who file those lawsuits are debt collectors according to the law. That means they must follow the Fair Debt Collection Practices Act in every way. Thus, when confronted with a debt collector that is also a lawyer, or when being sued by a lawyer for a debt collection, here are some things that the lawyers must do:
Advise you at each and every communication that the communication is coming from a debt collector, and any information obtained will be used for the purpose of debt settlement.
Send written correspondence to your home address within 5 days of the first communication identifying who they are, who they are collecting on behalf of, and the balance owed. In addition, the correspondence must advise you that you have the right to dispute the debt, and has 30 days to demand that the debt collector validate the debt.
If you seek the validation, then discontinue all attempts to collect the debt until such time as the debt collector provides verification.
In the event of obtaining a post dated payment instrument, provide you written notice of the intent to deposit the post dated instrument.


The single most effective form of debt collection for any creditor or debt collector is the filing of a lawsuit. If there is a judgment against you, the collector or creditor no longer has to make a deal with you for debt settlement. The lawyers who file those lawsuits are debt collectors according to the law. Thus, when confronted with a debt collector that is also a lawyer, or when being sued by a lawyer for a debt collection, here are some things that the lawyers must do: