If you are facing a lawsuit for a debt, you may want to seek the help of a debt defense attorney. Why? Well, you may not feel like you owe the money. Feel the amount is in dispute. Perhaps the other party did not fulfill their obligations to you. You believe the creditor used unlawful harassment tactics to try to intimidate you into paying. There are many laws that protect consumers from dishonest creditors and unethical contract collection companies.
Even if you owe the creditor the money, often when an attorney gets involved, they can negotiate a more favorable settlement agreement, as the creditor is now faced with getting nothing if you sue him. In fact, if the creditor loses the case, they are also out of the fees they paid to their attorney.
When Does It Make No Sense To Hire A Lawyer?
defend yourself against a claim from a creditor?
If you have no money in the bank and no assets, the creditor could get a judgment, but you can never collect it. If you find yourself in this situation, it is basically “trial-proof” and it would not make sense to hire an attorney to defend you to protect your money or assets. If you do not appear in court, your creditor could get a default judgment, but will have no way to collect the debt.
If the debt you are being sued for is relatively small, the attorney’s fees to defend against the lawsuit may be higher than the actual amount owed. It may be easier and less expensive to pay the creditor.
If your creditor will take you to small claims court and you have proof that you do not owe the creditor money, you may determine that it is best to represent yourself. If you are unsure about this, it may be time for you to discuss the case with a debt defense attorney. Again, consider the amount in dispute and the cost of attorney’s fees. Many debt defense attorneys will give you 30 minutes to discuss your case free of charge. Generally, a 5-10 minute phone call is enough to make that decision.
If you know that you legitimately owe the debt, you could try to fix something with the creditor, saving them time and money. If a creditor obtains a judgment against you, you could end up paying significantly more, as the judge could award your attorney and court fees.
Counterclaims against your creditor
You may have a legitimate counterclaim against the creditor. If you do, once you involve your attorney, the creditor’s attorney may be able to advise you to settle and avoid costly litigation. In fact, if you think you don’t owe the money because you breached your agreement or failed to deliver the promised services, you may be able to counter your claim for damages. If you have such a dispute and are being threatened by a lawsuit from a creditor, you will definitely benefit from hiring a good debt defense attorney. If the amount of money is sufficient to justify the attorney’s fees to defend you, then it is a good idea to contact a debt attorney as soon as possible.
What happens if you do nothing and your creditor gets a default judgment against you?
Many people who owe money avoid their creditors and their creditors go to court and get default judgments. The problem here is that the creditor will generally pay the attorneys’ fees, interest, and court costs. The amount owed can skyrocket. As soon as the court makes that judgment, the interest will begin to increase until the money is paid in full. Your creditor can garnish wages, place liens on real property, and find ways to legally collect the debt.
What if I have bills that I owe but cannot pay and am about to be sued by many creditors?
If this is the case, it would be wise to speak with a bankruptcy attorney who can explain how bankruptcy works. If you are concerned about defending various creditor claims, especially unsecured debt such as credit card debt, you should speak with a bankruptcy attorney. You may have more than you can handle. An experienced bankruptcy attorney can offer you all the options. In the long run, you better get out of all this debt with a Chapter 13 or Chapter 7 bankruptcy filing.
Despite the negative connotations that accompany the word ‘bankruptcy’, in many cases, it is the best option. Solve all your problems at once. It can help you regain a solid financial footing faster than letting debt overwhelm you and completely destroy your credit. Of course, this is all general information. You see, everyone’s financial situation is different. That’s why it’s worth talking to a debt defense attorney or bankruptcy attorney before you start racking up default judgments against you for unpaid debts.