If you are sued by a debt collector, the worst thing you can do is ignore it.

What actually happens if I ignore it?

If you ignore the lawsuit, the court will order you to pay whatever amount the creditor says you owe. But what if there is a mistake? Or worse yet, an intentional increase in amount owed? Who calculates the interest? Who decides whether the fees and costs added by the creditor are fair and reasonable? Who makes sure that payments are applied correctly? You can rest assured that any mistakes will be in favor of the creditor, not you.

90% of all debt lawsuits go unanswered, too often leaving debtors having to pay more than necessary, without any recourse.

Is it worthwhile to hire an attorney?

There are four or five ways to defend debt lawsuits. Not all of them apply in all circumstances, and none are worth the expense of pursuing unless the amount in controversy is more than $3,000. Almost never is it advisable to hire us to defend a debt that is less than $3,000. Even in the $3,000-$5,000 range, the decision is tough to spend lawyer fees to defend, considering the amount that will be saved and the likely result.

The analysis considers other alleged debts you have pending, other judgments, your income and assets, and current state of your credit report, to decide on a case by case basis whether any particular defenses apply, and if it’s worth it if they do.

Can I settle it on my own?

You can attempt to negotiate on your own a settlement agreement. You should always get the agreement in writing with a specific payment plan. If possible, negotiate that the debt be removed from your credit report as well.

Whatever you agree upon, make sure it’s realistic and that you stick to it, because if you don’t, the debt collector already knows your other assets and where you work, making it exceptionally easy to garnish. Almost always the creditor will require financial disclosures in order to settle.

We Can Help

Our attorneys are experts, and are here for you with straight talk, predictable cost, and superior services. We promise to tell you what the most likely outcome is up front, and to be open and transparent in our communications with you until your case is resolved.

Our approach to practicing law is revolutionizing the way law firms deliver legal services. Case evaluations are completely free. Call Lion Legal today at (501) 227-7627 or Email Us to set up a free consultation.