debt-consolidation

3 Reasons to Contact a Lawyer in Debt Collection Lawsuit

Owing money and not being able to pay for it is bad. Being served a lawsuit is worse than that because it means getting served a legal notice for missing the payment. It can be daunting for those who are crossing roads with the legal system for the first time. Usually, this process starts with a complaint and summons, which includes basic information regarding the administrative aspects of the suit and some instructions.

The most important details mentioned here is the return date, that is, the day by which the debtor should take an action or else the creditor will win a judgment against him. At a critical time like this, it is essential to contact a bankruptcy lawyer in Denver who has extensive experience in handling such cases and can help out easily. This article highlights three essential reasons to contact a bankruptcy lawyer in case of a debt collection lawsuit.

  1. Filing A Response to the Lawsuit or Debt Claim

In most cases, people tend to ignore such summons by trying to avoid responding to the lawsuit. This can be detrimental for a person facing bankruptcy in Denver. If he fails to respond then the collection agency will be awarded a default judgment against the debtor.

That will allow them different new ways of collecting money, including wage garnishments, appropriating bank balances, etc. Contacting a bankruptcy lawyer at this time can save a debtor a lot of headaches as these advocates can help him to respond by making legal briefs called answers. They can draft the answer and do the legal work necessary to file the answer.

  • Contesting the Creditor’s Legal Right to Sue

A debtor can decide to respond to the lawsuit by challenging the legal right of the creditor to sue. This procedure ensures that the company that owns the debt and is pursuing the lawsuit is required to show that they have the authority to sue them.

By this process, an individual can force his creditors to show the documents required to prove the debt either in writing or during a hearing in court. Because of the intricacy of this method of answering a lawsuit, it is highly recommended that a bankruptcy lawyer be contacted at this point so as to run this entire proceeding smoothly.

  • Considering the Statute of Limitations

Statutes of Limitations dictates the time that the creditors have in case they want to bring a lawsuit concerning a debt. The rules vary depending on the situation as well as from state to state but usually, the law provides a period of four to six years in most cases and the time starts from the last day the debtor was active on an account.

Activity here refers to any financial transaction like making payments or withdrawing funds from that account. Since this can restart the clock for the debt, it is best to seek legal advice from adroit bankruptcy lawyers in Denver before making any payment on debt as they know how to keep in check creditors who insist on collecting even a small amount so as to extend the timeline so that they can file a suit later.

Conclusion

Whether a person is sued by a credit card company or a debt collector, there are certain situations in which it becomes evitable to declare bankruptcy in Denver and get proper legal help. Consulting a bankruptcy attorney can help to avoid the small but costly mistakes which can make the lawsuit process lean in favor of the creditor. They can sort out the right way to deal with this process efficiently having in mind the debtor’s best interests.

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