Tag Archives: defense

Verification of Debt – Don’t Let the Right Turn You into a Sucker

Don’t be a Verification Sucker – Request for Verification is NOT a Substitute for an Answer

 

Verification of your debt is an important right, but demanding it  will NOT prevent a default judgment if you get sued.

People in debt trouble hear a lot about debt validation, and that is a good thing. Even though verification requires little from the debt collector, it’s still good to make the demand when you’re first contacted by a debt collector trying to harass you into paying. Requesting validation sends a signal to the debt collector that you will defend your rights.

If you get sued by a debt collector, however – even if that’s the first you’ve ever heard from them – you must do more. You must answer the lawsuit by filing your answer in court.

If you don’t answer, the debt collector usually gets a default judgment. That effectively ends your rights to fight the debt.

Conclusion

When a debt collector (or creditor) files suit against you, you will have to file an answer in court to avoid a default judgment. Many people think all they have to do is “dispute the debt and request verification.” The right to verification, however, applies only to collection efforts that are not part of a lawsuit. Don’t be a verification sucker – file an Answer and defend yourself.

Counterclaims When You’re Sued for Debt: Important for Your Defense

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Filing a counter claim is probably the single most important thing you can do in defending yourself from a lawsuit brought by a debt collector. There’s a great deal to say about counterclaims in debt law cases, and I suggest you look closely at the text of the Fair Debt Collection Practices Act itself as you consider what, if any, counterclaims you will bring. In this article, we will just discuss the importance of filing a counterclaim in general

Counterclaim – Why So Important?

In most jurisdictions, which is a fancy way of saying most courts and places, a plaintiff (the person bringing the lawsuit) is allowed to drop the case (that’s called “dismissing”) if it want to. And usually at any time it wants to. This isn’t true of federal court, where you have to get permission, but in most state courts it seems to be true. And debt cases are pretty much always brought in state courts.

That means that the debt collector could get tired of you and just dismiss the case at any time.

That’s cool! That’s just what we want and what I’ve been saying you should go for, right?

Yes, but if the debt collector simply dismisses your case, it could also sue you again later or sell the debt to someone else who would sue you later, and that is definitely not cool! You need the case dismissed “with prejudice” to keep it from coming back.

Counterclaims Stop Them from Suing You Again!

So how do you keep them from dismissing the suit and refiling the suit later? You do this by filing a counterclaim against them. A plaintiff can dismiss its own lawsuit, but not your claim against it.

Unless you agree. So if they want to dismiss the case against you either because your claims are good or because they don’t want to spend the money chasing you, they either have to settle the case with you, or they’re still left defending against your counterclaim. They never do that, because then they’d be bound to lose money one way or another. They’d either have to pay you or their lawyers (or both), — and without the chance of collecting anything from you. The worst of all worlds. They won’t do that. Instead, they’ll settle the whole case with you.

So a counterclaim gives you power over the plaintiff and lets you keep it around till they agree to destroy the debt (or “extinguish” it, as it is called). A counterclaim means you can put the harassment to an end. And sometimes your counterclaim can be worth a lot more than their lawsuit against you was in the first place.

About Your Legal Leg Up

Your Legal Leg Up is a business dedicated to helping people fight debt collectors without having to hire expensive lawyers to do it. We offer you everything you need to defend your rights – with special help through our membership services to help make the process smoother, easier, and less worrisome. YourLegalLegUp.com has been in operation since 2007. Before that, Ken Gibert practiced law representing people being sued for debt among other types of consumer law.

If you would like to get a personalized evaluation of your situation, follow this link: https://yourlegallegup.com/pages/evaluation.

For further help, consider our Manuals and Memberships. We have materials on debt negotiations and settlement, forcing debt collectors to leave you alone, credit repair, and many other issues that arise when you are facing debt trouble.

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