How Creditor Lawsuits Begin
When you owe money to a credit card company, healthcare provider, student loan holder, or another creditor, they could sue you. Unfortunately, when you don’t pay, or start getting behind in payments, the creditor will typically move in for a lawsuit to reclaim what rightfully belongs to them.
A debt collection lawsuit represents the most effective form of debt collection for creditors and debt collection companies. Utilizing debt collection state laws in South Miami for an optimal outcome can certainly motivate most debtors to pay up.
Without a proper response to a lawsuit that a creditor levies against you, this could result in a judgment that is not in your favor. With a judgment in their favor, creditors no longer need to make deals with you for debt settlement. According to Florida debt collection laws, you owe the debt, and the creditor wields strong legal power in their favor to collect it.
Creditors can garnish your wages, or seize your funds and assets through other methods. They might even put a lien on your property. Furthermore, an unpaid judgment will continue to collect interest as time goes on at a specified interest rate. For this reason, enlisting a lawyer that is experienced with debt collection issues, remains crucial for the best outcome possible.
Debt Collection Lawsuits
Any debt collection lawsuit begins by the creditor or their legal team filing a complaint with the court. Some legal professionals will also refer to this as a petition. This document lists you as the defendant in the case. However, it may include another individual like a spouse, or something who cosigned on loan.
The petition will additionally outline your involvement in the case, and why the creditor enacted the legal action. Typically, the document will also state what the creditor wants in the suit. This will include reimbursement for the money you owe, in addition to interest and possibly legal fees.
Nonetheless, once filed the creditor or collection agency must serve you a copy of the complaint and a court summons. The summons will notify you of the lawsuit while offering additional information like when you need to file a formal response in court.
A creditor may sue in civil court. However, if you owe money to the federal government, the federal court will oversee the case. Creditors can also sue in small claims court as long as the lawsuit asks for less than a specified amount. This amount varies by state jurisdiction and might represent a figure of a few thousand dollars up to tens of thousands.
Preparing a Lawsuit Response
Debt collection state laws in South Miami, impart 30 days for your response in a lawsuit. Unfortunately, preparing an articulate, formal response may prove difficult. This where it remains a good idea to enlist the services of an experienced lawyer to help you sort out your defense.
They can prepare the written response as they represent you in your debt collection lawsuit. If the creditor, debt buyer, or other collector violated the law, an attorney can not only pinpoint this, but you may stand to obtain a substantial payout as well.
In some scenarios, defendants discover that an attorney is too expensive for their needs. The legal fees may also exceed what the creditor wants to obtain in the lawsuit. Debt collection state laws in South Miami enable you to represent yourself. However, you will need to arm yourself with a substantial amount of legal knowledge.
It is also essential that you fully understand the court rules. Otherwise, you could end up losing an opportunity to defend your case. Raising an argument or defense at an improper time could result in a court refusal even to consider it.
When you formulate a response, it is important to touch on any possible defenses. This might include a statute of limitations defense, or questioning the overall validity of the debt in question in the lawsuit.
Debt Collection State Laws in South Miami – The Law Offices of Paul A. Humbert, P.L.
Some people think that it remains in their best interest not to fight and default. Although this could be the case if you owe the debt with no defenses, however, the lawsuit should accurately reflect what you owe the creditor.
Nonetheless, before you default, ensure that you wield no defense in your case. Even if you possess little money, it remains worthwhile to consult with a professional, experienced attorney. They may cultivate defenses out of their knowledge about debt collection state laws in South Miami and violations that you are not aware of.
Our attorneys from the Law Offices of Paul A. Humbert, P.L. represent creditors in debt collections cases, as well as individuals on the defense side. This gives our firm a unique perspective on both sides of the law, enabling us to provide the absolute best in objective representation.
Representing individual clients, corporations, companies, and small businesses of varying size and power, we have served the South Florida community for over 30 years. Our team wants to represent you as an advocate on behalf of your best interests in a court of law.
For more information on how one of our lawyers can help you with a debt collection lawsuit issue, contact us today. Our firm remains knowledgeable and up-to-date on all debt collection state laws applicable in the South Florida area and can assist you with expert legal advice.