Bad credit repair takes backseat when Tiffany discovers unknown creditor hits her with lawsuit.
Tiffany claims she knows nothing of the creditor who’s suing her over $593.50.
$593.50! (?)
Typically, I don’t hear of lawsuits over a few hundred dollars.
Tiffany claims she reviewed her credit reports along with a credit repair company she’d hired to improve her credit.
Oops, I guess someone missed this bad credit listing.
Sure enough, the summons is real.
Tiffany is being sued.
For Tiffany’s and your understanding, a summons indicates a lawsuit by a debt owner trying to collect a debt.
Click Read More below now to discover Tiffany’s options — yes, she does have options, even though a lawsuit appears to put all the power in the hands of the Plaintiff filing lawsuit.
LAWSUIT DOESN’T MEAN PLAINTIFF WINS….
A Lawsuit Is Bad Enough
At first, Tiffany wanted to make her situation worse by not hiring an attorney. She thought getting sued over $593.50 was not a big deal…that a default judgment was no big deal.
WRONG!
A judgment (in some cases) is WORSE than a bankruptcy!
In Florida, a judgment creditor can hang a noose around your neck for up to 20 years!
…20 YEARS!
Before many creditors will approve your credit app, they will demand you satisfy the judgment BEFORE they’ll approve you.
Tiffany should have 35 days or less to respond. In this time, Tiffany will need to decide what approach to take.
5 Steps Help Tiffany Face
& Overcome Lawsuit
STEP 1-Do NOT ignore the summons. If she were to ignore the summons, the creditor would win a default judgment.
Depending on the state in which you live, the default judgment could involve wage garnishment and bank account levying (that is, judgment creditor can raid your bank account). Do not ignore a summons. The creditor is hoping that you will ignore the summons, as most people do, so thay can score a default judgment.
Carefully review the summons…along with an attorney. I realize you probably don’t want to pay for an attorney. When it comes to legal stuff, can you afford not to get an attorney? A summons should include proof you owe this money such as complete account history or signed documents like a contract or sales receipts. Chances are, the Plaintiff (alleged debt owner) doesn’t have proof necessary to prevail in court.
STEP 2-Absolutely respond to the Summons. Send your response to the address provided. If the debt clearly is not yours, deny the debt, saying something like, “This debt is mine.” This will buy time.
If the debt is yours, chances are the alleged debt owner cannot provide proof the debt is yours and the amount alleged is accurate. In this case, mail your validation request to the creditor, demanding proof you owe the debt.
STEP 3-Absolutely send your validation request certified mail so you have a receipt of delivery. Once the debt validation letter is sent, the creditor has 30 days to validate. If they can not validate, you are done. Keep in mind, the creditor must provide a complete account history, signature documents, or proof the debt was purchased and your original contract stated that this debt collector suing you legally has the right to collect on the debt.
STEP 4-If the creditor can validate (that is, PROVE the debt is 100% accurate), you then must negotiate a payment or payoff [in writing] outside of court. Offer 40-60% of the alleged debt balance as full payment. Do not allow a debt owner to score a judgment against you.
Tell the creditor how much you can afford to pay per month. Make it realistic for you. Make sure to demand that your credit report reflect “paid as agreed” as you stick to the payment plan.
STEP 5-Bottom line, many creditors do not want to go to court…either. They know court is unpredictable and that the creditor (when prevailing) will be afforded payment plan based on what the debtor can afford.
Important: By all means, hire an attorney who specializes in Fair Debt Collection Practices Act. Don’t go the pro se way (that is, don’t try to do this on your own). Have you been sued for an unpaid debt? What did you do? Did you simply pay off what the Plaintiff demanded? Or did you demand validation (that is, proof of debt to the penny)? Did you settle out of court with a negotiated “good” credit reporting? I want to hear your questions, comments & experiences. Scroll down a bit & tell me what’s on your mind.
Bad credit repair starts with a careful review of all credit reports. Strangely, Tiffany’s “hired gun” (the credit repair company) should have caught this bad credit account. But they didn’t…. Before Tiffany can think of improving her credit, she needs to resolve this bad credit turned legal.
Tiffany should have 35 days or less to respond. In this time, Tiffany will need to decide what approach to take.
One thing she should NOT do is ignore the summons. If she were to ignore the summons, the creditor would win a default judgment.
Depending on the state you live in, the default judgment could involve wage garnishment. Do not ignore a summons. The creditor is hoping that you will ignore the summons, as most people do, so thay can collect on the debt by default judgment.
Carefully review Summons. Summons should include proof you owe this money such as complete account history or signed documents like a contract or sales receipts. Chances are, the Plaintiff (alleged debt owner) doesn’t have proof necessary to prevail in court.
Abolutely respond to the Summons. Send your response to the address provided.
If the debt clearly is not yours, deny the debt, saying something like, “This debt is mine.” This will buy time.
If the debt is yours, chances are the alleged debt owner cannot provide proof the debt is yours and the amount alleged is accurate. In this case, mail your validation request to the creditor, demanding proof you owe the debt. Absolutely send your request certified mail so you have a receipt of delivery. Once the debt validation letter is sent, the creditor has 30 days to validate. If they can not validate, you are done. Keep in mind, the creditor must provide a complete account history, signature documents, or proof the debt was purchased and your original contract stated that this debt collector suing you legally has the right to collect on the debt.
If the creditor can validate (that is, PROVE the debt is 100% accurate), you then must negotiate a payment or payoff [in writing] outside of court. Offer 40-60% of the alleged debt balance as full payment. Do not get a judgment rendered against you.
Tell the creditor how much you can afford to pay per month. Make it realistic for you. Make sure to demand that your credit report reflect “paid as agreed” as you stick to the payment plan.
Bottom line, many creditors do not want to go to court. They know court is unpredictable and that the creditor (when prevailing) will be afforded payment plan based on what the debtor can afford.
By all means, hire an attorney who specializes in Fair Debt Collection Practices Act. Don’t do this on your own.
Welcome back! Got a question for me...or an experience to share? Please go to the bottom of this article to ask a question or share an experience. :) Thank you!
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