At the Arrington Law Firm, I help people dealing with overwhelming debt file for bankruptcy in Littleton, Aurora, and Centennial by helping them file for Chapter 13 or Chapter 7 bankruptcy. So, it’s no surprise to learn that I often work with people who are being sued by a creditor. Whenever anyone is being sued, they panic and have many questions. The three most common questions are:
“Who is suing me?”
“Why am I being sued?”
“Should I even try to fight back?”
In today’s blog, I’m going to discuss each of these questions so you know what steps to take if you are being sued for your debt.
Question: Who Is Suing Me? Answer: Usually Not the Original Creditor
Debts very rarely stay with the same debt collection agency – they are bought and sold regularly.
Sometimes, it can be difficult to know who exactly is suing you. This is because debts very rarely stay with one company. In most cases, companies assume a debt is a loss and sell their rights to a debt collection agency. Debt collection agencies buy and sell debt, and make it their business to try to collect on those debts by calling debtors repeatedly, and sending them bills. But, it is expensive to sue debtors; agencies often sell the debt to another collection agency. By the time you receive the notice you are being sued, your debt could have changed hands many different times.
Question: Why Am I Being Sued? Answer: They Believe You Can Pay
Collection agencies only sue if they believe they have a chance of winning.
People often ask me why they are being sued. There are many complexities involved in this question. The best answer I can give is that collection agencies and creditors only sue when they think they have a chance to win the case and collect their money. If they didn’t think they had a chance, they wouldn’t risk the cost and trouble of a lawsuit. If they believe they can get their money through a lien on your home in Highlands Ranch, Lone Tree, and Parker, wage garnishment, or other collateral, they will sue. Keep track of all your assets. If you know about them, so do your creditors.
Question: Should I Even Try to Fight Back? Answer: Absolutely!
Take control of your finances and fight back by working with an excellent attorney.
People tend to get paralyzed when they hear they are being sued. Often, they give up and don’t do anything about their situation. This is the wrong response. You absolutely need to fight for your financial future. Take control and make sure your situation doesn’t get any worse. If you don’t take action quickly, the court may grant a default judgment on your case, which is better for the collection agency suing you. The agency could end up gaining the right to attach or lien your assets and wages, and the court may require you to pay the collection fees for the lawsuit. The best thing you can do if you are being sued is to contact an affordable, knowledgeable bankruptcy lawyer to discuss your situation and the best options. I have over 25 years of experience, and I know what creditors can and can’t do. I’ll be able to spot any discrepancies on the part of the collection agency, which entitles you to a counterclaim or dismissal. Don’t delay taking control of your financial future – contact me for a free consultation today.
If you are being sued and are struggling to make ends meet, contact experienced bankruptcy attorney Barry Arrington for a free consultation at 303-205-7870.
He will help you get the best fresh start possible.