The Process of Debt Collection Lawsuits

The Process of Debt Collection Lawsuits

When you begin to fall behind on monthly payments, your creditors may believe that you will end up defaulting on your debt. In such cases, creditors will send out reminder notices to inform you of your missed payments. If your account is not brought up to date after this, creditors or debt collection agencies may result to calling you on a daily basis. If the debt continues to worsen or goes without correction, a creditor or debt collector may file a lawsuit against the debtor. Unfortunately, this can be a grueling and extremely stressful process. That is why it is extremely important to seek experienced legal representation immediately. Your future may be at stake.

Below is an outline of how the process may play out if you do not receive legal assistance right away.

1. Lawsuit Filed with Court:

  • This will list you as the defendant, and in some cases, another person (someone who cosigned the loan or account).
  • This will state why the creditor is suing you, and what the creditor desires. In most cases, the creditor will want reimbursement for the money you owe, interest fees, and attorneys’ fees and court costs.
  • These lawsuits must be filed in the county where you obtained the debt and in the country where you obtained the debt in which they are suing on.
  • It is considered illegal for creditors to file lawsuits against debtors who live in other countries.
  • Although debt collection cases are relatively simple, debt collection lawyers often rely on the fact that most debtors do not understand their rights.

2. Defendant Served with Paperwork:

  • A creditor must serve you with documents by handing you a physical copy. (This may vary.)
  • This will include a summons which notifies you that you are being sued.
  • This will contain information such as when you will need to respond in court

3. 20 Days to File Written Response or Risk Default Judgment:

  • You will have 20 days to file a written response to the lawsuit.
  • This is often referred to as the “answer.”
  • It is wise to hire a lawyer when writing your formal response as it can be a difficult process.
  • An attorney can determine if the creditor or collector has violated the law.

4. After Default Judgment, Creditor May Garnish Wages and Bank Accounts:

  • A creditor can take up to 25% of your net pay which can be a substantial amount for those already suffering financial difficulties.
  • If you owe child support of back taxes and a creditor is garnishing you wages and bank accounts, you can expect to lose up to 50% or more of your wages.

Owenby Law, P.A. is Here For You

The Jacksonville bankruptcy lawyers at Owenby Law, P.A. understand how stressful life can be when finances become overwhelming. That is why we are here. Whether you are interested in filing for bankruptcy or simply need help regarding a debt collection lawsuit, our bankruptcy attorneys can work hard to provide you with the answer you need. Remember, you do not have time to wait. When you have been served, you must act fast.

Call Owenby Law, P.A. today and see what we can do for you!


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