Creditor Lawsuits

How to Deal with Creditor Lawsuits

There will be a point when a creditor or debt collector may sue you if you have unpaid debt. If you have income or assets then the creditor may sue you to get a judgment. Do not panic if you are served with a debt collection lawsuit.  Call our experienced debt relief attorneys now. We have provided aggressive defense on behalf of our clients facing creditor lawsuits. Schedule your free initial consultation today.

When faced with a creditor lawsuit, it is important to know what to do. Below, our attorney discuss how to deal with creditor lawsuits. You need to understand the different ways in which a creditor can collect on a judgement if they have one against you. Sometimes you can prevent the creditor from taking part, if not, all of your income or assets.

What to expect with a creditor lawsuit

The creditor serves you  with a complaint for non payment of your debt. You have a chance to respond.

Defense and Counterclaims

In your formal response you can highlight and raise your defense and counterclaim (if any).

Time-barred debt

Creditors or debt collectors have a limited number of years to collect on unpaid and outstanding debts. Very old debts can be safe from lawsuits. This depends on the time period (statute of limitations) and  varies from state to state and for different types of debt. Be careful about talking to creditors or debt collectors about old debt because under certain circumstances the statute of limitations can be restarted. You can extend the time that the creditor or debt collector has to sue you, if you mention the wrong thing.

Debt Buyer Lawsuits – Defense

You may receive collection letters or be served with a lawsuit by creditors or debt collectors that you do not know. This is not uncommon nowadays. The creditor that is suing you may not be the same creditor that you owed the debt to. There are defenses to debt buyer collection lawsuits.

Creditor Judgment

Debtor Examination

There is a judgment against you and the creditor may request that you answer questions about your present finances in court.

Money Judgment

This is a document stating that the creditor or debt collector has won the lawsuit and that the creditor is entitled to a certain amount of money.

Enforcing Judgment

If the judgement is against you, the creditor will be called the judgement creditor and you the judgement debtor. After the creditor gets a money judgement against you they will want to know what income and assets you have so they can start collecting. This is called enforcing the judgement.

There a different many different ways by which a creditor can collect funds from you including wage attachments, assignment orders and property levies.

Credit Card Debt Judgments

If your default on your credit card debt payments, the credit card company may try to get a credit card debt judgment against you by filing a lawsuit. If they do get a judgment against you, they can use many different ways to collect on your debt.

If you are dealing with a credit lawsuit, it is recommended to seek out the services of an experienced debt relief lawyers. Our lawyers at have assisted both individuals and business fight against creditor lawsuits. Let us help you!