Best ways to defend a debt collection lawsuit

We at some point of time in life are to knock on the doors of banks or the financial institutions for loan. To our experience we fail to find a person who never approached any institution or bank for loan! The reality is: we are rather driven to apply for loans for fulfilling our dreams and desires in life. You know what these loans at times become unmanageable, especially during the volatile market conditions. This is a worldwide phenomenon. The recession in the year 2010 in US can best serve as an example here!  

As a matter of fact it becomes imperative to have general awareness on ways and means of defending a debt collection lawsuit. After all, knowledge is power to you that can effectively help you sail here unscathed! It is however important to mention that generalization on defending every debt collection lawsuit is next to impossible in view of the terms and conditions laid out in your original loan document to which you agreed at the time of the disbursal of the loan amount.

How to defend a debt collection lawsuit?

We have thus far fairly discussed about the cause and effect of a debt. Let us now explore ways and means for defending a lawsuit for debt collection.

•  Debt consolidation: If you are struggling hard with your creditors for realigning your credit plan and have been dragged into a debt collection lawsuit you can approach debt relief service agency. But, according to the conducted study by National Debt Relief you have to do your homework in terms of the agency’s past track records etc. before handing over your case to it. Debt consolidation is one of the ways meant for defending your debt collection lawsuit. The debt consolidation cannot happen overnight; and takes some time for resolving. Caveat: nothing is sacrosanct and the outcome here should rather be read subjectively!
• Debt confirmation: A debtor may be hounded by more than one debt collection agencies for the same debt or the debt that you feel, you don’t owe at all. According to the consumer finance government website the best way in such a case is to ask the agencies for substantiating their claims. This in turn will allow you for a breathing time to understand the cause of the issue and organizing finance, if required. All that you need to do here is to write a letter to the debt collectors asking for verification of the debt. 
• Timely response to lawsuits: In the event of a fall out for repaying your debt you will be served with notices in the form of summons and complaints. As a responsible citizen you must attend to these summons and complaints on time and never get into the trap of evading them! People failing to respond to summons might be construed as habitual defaulters in the eyes of law. As such they would be dealt separately and would summarily be debarred from seeking relief on normal grounds.  
• Challenge the debt collector: The debt collector is required to be authorized by the institution or the card issuing company for collecting the debt on its behalf. This in legal parlance is called standing. Unless the debt collector has the standing they cannot even file a lawsuit and hence the lawsuit will stand void!
• Defend with the statute of limitations: Debt collecting agencies have a time frame of 4 to 6 years for recovering debts through lawsuits post which the statute of limitations expires in most of the states of US. Use this statute of limitation to your defense if a debt collector is trying to recover an old debt from you. 
• Filing for bankruptcy: File for bankruptcy if you have been dragged into multiple debts for some reasons or the other. But, filing for bankruptcy just for a small amount that you took recently would NOT make sense. Since bankruptcy has a larger impact on your overall credit standing in the market you must see an attorney for the purpose. 
• Approach an attorney: This might sound something irrational at this point as you are already burdened with debts and to top it all we are suggesting to hire an attorney! But, the reality is: attorneys who regularly take up such cases will mostly likely fight for you for free if they see you are genuinely unable to make good of your debts. The attorneys recover their fees from the plaintiffs. Onus to mention, debt collectors generally don’t approach attorneys! 
• Sue back the debt collectors: Every debt collector is to work within the ambit of Fair Debt Collection Practices Act. If debt collectors violate provisions; you can always sue them back.

To our experience we have seen that your chances of settling the lawsuit out of court go high when your debt collectors know you have hired an attorney for defending your case!