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6 Legal Things Every Consumer Should Know About Debt Defense

Have you been turned over to a collection agency because of debt? You can feel scared and unclear about what to do when dealing with debt. Your best option is to get in touch with a consumer debt defense attorney. Consider these 10 legal things every consumer should know about debt defense.

You may feel overwhelmed if you are having trouble making your mortgage, vehicle loan, credit card, or medical debt payments. Add to that the debt collectors that harass and threaten people like you who need cash. You never know when your predicament will get tense. Avoid allowing things to happen to you.

1. Debt Collection Lawsuit Process

Filing a lawsuit is the lone method of debt collection for any creditor or debt collector. You can end up with a judgment against you if you fail to react to a lawsuit that has been filed against you. The debt collector or creditor is no longer required to reach a settlement with you if a judgment is entered against you. A creditor may seize funds from your income, your bank or savings accounts, or lien your personal property to settle a judgment. A judgment that has not been paid also continues to accrue interest at a rate set by the state.

What to do if you are being sued?

These are things you must do if you have a suit and you need to create some debt defense:

  • Check out the summons. A summons is a formal court notice that a lawsuit has been filed against you. According to your state’s statutes, a summons must be properly served on you before any court can pass judgment against you. You will receive clear instructions on what to do and how much time you have in the summons. Do not wait. Usually, you don’t have a lot of time.
  • Speak with a lawyer – Get in touch with our office to talk to a debt defense lawyer.

The debt defense lawyers who bring those lawsuits are debt collectors. They must abide by the Fair Debt Collection Practices Act. Here are some things that lawyers can do when dealing with a debt collector. Debt collectors are also lawyers on behalf of the other party.

  • Whenever a debt collector contacts you, let the lawyers know. They must also know that any information they may gather will be used to try to settle the debt.
  • They must send written mail to your home address. This must be within 5 days of the first contact. The mail will specify who they are, who they are collecting on behalf of, and the amount owed. The mail must also inform you that you have the right to contest the debt and have 30 days to ask the debt collector to confirm it.
  • If you want the confirmation, the lawyer must stop trying to collect the debt until the debt collector gives you the confirmation.
  • The lawyer must give you written notification of the intention to deposit the post-dated instrument. They do this if you receive a post-dated payment instrument.

2. You can dispute the debt balance.

The consumer may be able to reduce their debt by disputing the balance. Balance increases commonly occur when the initial lender sells the account to a debt collection agency. The customer will need bills from the original lender that detail the account’s most recent balance.

3. The Consumer Can File for Bankruptcy

As long as the bankruptcy claim is filed, bankruptcy shields the consumer from all legal claims covering the debt. The automatic stay is in effect until the bankruptcy case is resolved, which may take six months to five years.

4. Improper Service Debt Defence

According to the “incorrect service” defense, you were not informed of the litigation and never received a summons to the court date. The summons must often be personally delivered to the defendant by a court official. A process server may deliver court documents in specific circumstances. Still, the process server needs proof that the defendant was actually served. You could assert the defense of inappropriate service to have a court dismiss a complaint against you even though you were unaware of it.

5. There Isn’t A Business Relationship with the Consumer

If the plaintiff does not conduct business with you and the debt collector is not the original creditor, you can file this. Charged-off debts are sold to a collection agency to recover the unpaid sum. The debt collector then raises the debt’s balance and tries to recoup the cash it used to buy the account from the original creditor. You may be able to dismiss the lawsuit by arguing that you have no business relationship with the other party.

6. Debt Was Paid

The debt collector or creditor has no case against the consumer if they are responsible for the loan. The customer would need a copy of the payment method’s receipt and invoices that clearly identify the total amount owed on the credit. The customer might use a debit or credit card receipt to support their claim. If the customer used a check to pay, the bank would receive a copy of the check once the creditor had obtained payment from the bank.

You need prompt legal counsel when you are named as a defendant in a case brought by a creditor or debt collection agency. You may need a debt collector in Colorado. Many debt defense lawyers could prevent you from receiving a lawsuit award. You can better prepare for their cases by being aware of the most prevalent defenses.

If debt collectors are threatening legal action against you, being sued for an unpaid bill can be distressing and overwhelming. Your finances may be negatively impacted by high debt. As a result, you might be concerned that you will lose your house, car, or business.


You don’t have to deal with these concerns on your own since our lawyers can support you in taking appropriate action. We can help you go on with your life by outlining your legal alternatives, putting an end to creditor teasing, and providing legal advice. Make a call to our office right away for a case review.


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