The Truth of Credit

This is the “House of Pain” for most debtors and certainly a place you want to avoid at all costs. Just like most things, being proactive is essential to avoid the wrath of the process. In this post I will be using generalities but these are things you need to know about being sued by a collection agency and can be different from state to state. Here is are the basics:

The initial summons:  In most small claims courts around nation, you lose your right to move the case to a real court if you don’t request to do so within ten days of receiving the small claims notice. (Note: Small claims courts are essentially collection courts since a huge part of their docket is collection cases. They are generally favorable for debt collectors and unfavorable for consumers. You never, ever, ever, ever want to be in a small claims court if you can help it. And, you have to respond to a summons and complaint within 20 days or risk a default judgment.)

Hiring a attorney:  Attorneys rule the world, there no point fighting it. Most people who have reached this point can’t afford an attorney but they are relatively cheap at this point in the process and many can be retained at a flat rate. More than likely the price will range between $1,000 to $4,000 depending on the complexity of the case. Obviously, the attorney is optional but highly, highly recommended.

The TRUTH is that all too often, debt collectors sue the wrong person or sue on a debt that is past the statute of limitations. They don’t deserve to win, and but do by default. Even when they do have the right person and the debt isn’t stale, they very seldom have the documentation they should have in order to file a lawsuit against someone. This is because debt collection is all about volume and minimizing expenses. Basically, they are betting that you won’t show and sadly more than likely you won’t.  Don’t let this happen to you! 

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