Dealing with a debt collection lawsuit

Many people in Tennessee struggle to make ends meet. They may be facing mounting credit card bills, medical costs, car loans and more. When people have difficulty paying their bills on time, they may begin to receive calls and letters from collection agencies seeking to be paid for the debt. In some cases, people may even be sued by the debt collectors. Over 70 million Americans have dealt with debt collection agencies, and their tactics can be disturbing at times. Around one-quarter of people felt threatened while dealing with the companies.

It is important for people to understand what they can do if they are sued by a debt collector. People who owe money have rights under the law that must be protected. When people are facing a debt collection lawsuit, they can respond via an official answer through the court. In this document, it can be particularly important not to admit responsibility for the sum owed. Instead, the respondent can demand that the creditor show proof of the debt. Responding in a timely manner can help people avoid additional penalties.

In some cases, people may be able to challenge the collection agency's right to sue. Usually, the companies suing in these cases are collection agencies that bought the debt. They need to get more information to prove that they are authorized to collect the debt, including showing that the debtor signed a credit agreement and that the agency is presenting correct information from the original creditor.

Lawsuits and judgments stemming from overdue bills and mounting debts can be difficult to handle. In some cases, people may benefit from seeking debt relief on a larger scale. An attorney may provide advice and guidance on personal bankruptcy options and how Chapter 7 bankruptcy might be an important step toward a different financial future.