Four Basic Rules for Dealing with Collection Lawsuits

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We get lots of calls from clients facing debt collection lawsuits and wondering what to do. At least these people are being proactive by contacting a lawyer certified in consumer bankruptcy law. I get the impression that there are lots of debtors facing the threat of lawsuits who are just sitting around stressing out and doing nothing.

Lawsuit threats from creditors can be alarming, but there are ways you can fight back if you plan ahead. By fighting back you can also avoid the adverse effect of garnishment and other involuntary collection activity.

We like these four basic rules for dealing with collection lawsuits from “Guide to Surviving Debt” Published by the National Consumer Law Center.

  1. Not all threats of collection lawsuits will be carried out. Threats of lawsuit need to be evaluated to determine if the lawsuit can actually hurt you. A attorney who specializes in consumer bankruptcy law can evaluate your situation and provide expert legal guidance.
  2. It is critical to respond to court deadlines. Most debtors facing a lawsuit will need professional help figuring out the risks involved in the lawsuit and whether the suit can be defended.
  3. You may be able to win the lawsuit. Sometimes raising a defense is enough to get a creditor to drop the case. Most debtors need professional help determining whether a collection lawsuit can be successfully defended.
  4. Should you loose a collection lawsuit, there are ways you can mitigate the damage. There are several tactics a creditor can use to get you to pay up. You may consider using the bankruptcy process to give you more options for dealing with judgements.

Contact Cossitt Law at (406) 752-5616  if you are facing a collection lawsuit. We can evaluate your case and provide you with sound legal options for dealing with and defending against a collection lawsuit.


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