Below are some steps that you can take if you are being sued by a debt collector in Union City.
Step 1: Hire a Lawyer to Answer the Lawsuit when a Debt Collector in Staten Island Sues you
When a debt collector sues you, they have to let you know that they are filing an action in court. This means that they will attach a summons letting you know the date and time you have to respond to that lawsuit. Generally, the papers may be mailed to you or served on you personally.
The complaint is the document that follows the summons. The complaint by the debt collector will list all of the causes of action why you are being sued. This document should tell you who is suing and the amount that the debt collector is suing you for. It also may tell you the date and time of the hearing.
Unfortunately, many people assume that if they don’t get served or if they don’t open the letter, the lawsuit will stop. Unfortunately, this is not the case. If the debt collector can show that they tried to serve you, the court can enter a default judgment against you.
A default judgment is entered when the individual being sued doesn’t answer the lawsuit. The default judgment allows the creditor to collect interest, fees, penalties, and the amount owed. To not have a default judgment entered against you, it is important that an answer is filed. An experienced Union City bankruptcy attorney can file an answer on your behalf or speak with the creditor to see if some arrangement can be made.
What are the consequences if a debt collector in Union City gets a default judgment?
If a Debt collector in Union City gets a default judgment, the creditor can force you to pay money against your will. A creditor with a default judgment can:
- Levy your bank account. This means they can take money directly from your bank.
- Garnish your wages. This means your employer will be notified of the outstanding debt. They will ask your employer to take a certain amount of your check each week until the debt is paid.
- Put a lien on your property. This means that they can record a lien so that you won’t be able to sell or refinance your property until that lien is paid off.
Often times individuals wait until a judgment is entered to do something about the judgment. It becomes much harder to do anything about the judgment once a default has been entered. Therefore, it is important to seek out a Union City bankruptcy lawyer before the judgment is entered.
Step 2: Figure out if the Debt Collector has violated the Fair Debt Collection Practices Act
If a debt collector has violated the FDCPA then you could be entitled to damages. Many debt collection notices contain violations that can allow you to possibly sue the debt collector and get money back. In some cases, you may be able to get the attorney general involved if the debt collector is harassing you.
Step 3: Think About Settling the Debt
If you have the money to pay off the debt, it may be a good idea to hire a Union City lawyer to settle the debt with the debt collector. A lawyer usually has experience doing this and they may be able to settle the debt for much less than what you owe. This can stop the lawsuit and ensure that they won’t get a judgment against you. A debt settlement can be a good option for some people. However, it is important to understand that there are tax consequences when settling debts.
Step 4: File for Bankruptcy
If you are in debt and can’t afford to pay the debt, then it might be time to consider filing bankruptcy in Union City. Bankruptcy can stop a wage garnishment, bank levy, and any other action a debt collector is trying to take. Typically, bankruptcy is good for people who need to get a fresh start and start over. Bankruptcy laws were enacted to help people get a fresh start. While bankruptcy may not be an easy decision, it may be the best decision financially.
What Should I do now about the debt collector?
If you are being sued, it is important not to ignore the lawsuit. Remember, if a creditor gets a judgment, they can garnish your wages, levy your bank account, or put a lien on your property. Review the papers that you received from the court and speak with a Union City bankruptcy lawyer as soon as possible so that they can review your financial situation and determine what the best route for you is.