I acquire e-mails every single week from individuals who have had the misfortune of getting a summons notice on their doorstep or the joy of obtaining a stranger sidle up to them and say, “You have been served.”

Not enjoyable. Oftentimes, these identical individuals inform me that the very first factor they did was to choose up the telephone, get in touch with the collection agent or collection lawyer in a lot of circumstances and attempt to function out a payment strategy or settlement agreement. This is Incorrect, Incorrect, Incorrect.

As soon as you have been served a summons, this implies that the collection agency is SUING YOU. You are becoming sued and the collection agency is now the Plaintiff and you are the Defendant. Any and ALL communication with the Plaintiff must be completed by way of written correspondence only.

It really is also late for “I will send you $50 buck a month, I guarantee.” Way also late. Now is the time to take duty for your economic future and face your fears (debt) head on. Even if the collector was to agree to a payment strategy, they can not be trusted. Even though you are “functioning it out” they could be in the method of placing a lien on your house and looking for your bank account information and facts in order to seize your assets.

Here's what you want to do. Initial of all, DO NOT BE INTIMIDATED. This is hard, soon after all I am certain you really feel badly about the debt in the very first location and it is most likely been haunting you for years. The sad truth is that a lot of of these debt lawsuits are brought about on out-of-statute debt and the collection agencies and debt attorneys are notorious for re-aging the DOLA or Date of Final Activity on your credit report. It really is in your finest interest to dig up any old credit reports and bank statements to prove the the date of the final payment you created on the defaulted account. If that date is previous your state's statute of limitations on open credit card debt, they have the suitable to attempt and gather, but they can not sue you and will have to drop the lawsuit.

Also, pretty seldom is a debtor sued for the actual quantity they owe…penalties, interest, and other assorted charges are frequently tacked on to the balance. Make them prove their case!


There are a lot of other defenses that can be raised against 1 of these collectors. The important is that you want to communicate with them by means of the court program. They never anticipate you to fight back, more than 96% of debt lawsuits finish in default judgment. The possibilities of them backing off and dropping the lawsuit are Enormous if you take the time to effectively format what is named a Notice of Look, Answer, and Certificate of Service.

It requires some time and study to effectively file these documents, but it is your economic future at stake. A default judgment can not only freeze your bank account or garnish your wages but it will also ruin your credit for a minimum of 7 years. A couple of states supply fundamental templates for the types you will want to file with the court, a very simple Google search must supply up some sources. 

Also, you must fax and mail (certified, return receipt) a Cease & Desist Letter to the creditor informing them that they will have to communicate you with by way of written correspondence only and now that they know how to communicate with you they will have to refrain from contacting any of your neighbors, close friends, relatives or staff in an try to gather their debt. If they violate your request, you can threaten to sue them for an infraction of the FDCPA (Fair Debt Collection Practices Act) which makes it possible for $1,000 for every violation.

Now is the time to action. If you do absolutely nothing, the creditors will discover your assets and take them. Bottom line. File your Answer and other supporting documents and wait and see. The finest that can take place? They will not want to fight you in court and drop the lawsuit (they seldom have the supporting documentation to back up their claims) or you will acquire a courtdate and you will be offered the opportunity to function out a settlement agreement at that time. Either way you will have avoided a default judgement which is looked upon as poorly as bankruptcy in a lot of circumstances.

Fight back! You have absolutely nothing to shed and all the things to achieve.