Sued by Portfolio Recovery Associates?

Don’t Ignore the Lawsuit Papers: Ignoring the debt collection lawsuit will result in a default judgment against you followed by potential garnishment of your bank account or wages depending on state collection laws.  This is more serious than a simple collection letter.  It’s a Court process that could give Portfolio Recovery the power to take some of your assets or put a lien on property that you own.  A debt lawsuit is much more important than simply having a negative mark show on your credit report.  A low credit score is not nearly as critical as a default judgment for not responding to a debt collection lawsuit. You must have a debt collection defense strategy.

 

File a Response to the Lawsuit: When you are sued by a plaintiff like Portfolio Recovery on alleged credit card debt, You must respond to the lawsuit by filing an answer with the court within the specified deadline (usually 14-30 days from service). The deadline varies depending on what Court the case was filed in. In your answer, you generally must deny the allegations of the creditor or you will admit the debt and a default judgment will be awarded.

 

List Defenses in Your Answer: Debt lawsuits require a response, just like any lawsuit for bad debt.  In your answer, you can also assert any valid defenses you may have, such as disputing the debt’s accuracy, claiming the debt is past the statute of limitations, or arguing that you’re not the responsible party.  As the defendant, you must properly assert your defenses.  Portfolio Recovery Associates may not be able to show adequate documentation.  Since they are a debt buyer, Portfolio must be able to provide adequate documentation from the original creditor.  

 

Attend all Court Hearings or Have your Attorney appear: When legal action has been taken against you by a debt buyer, the Court will likely set deadlines and hearings in your case. Make sure to attend all scheduled hearings and proceedings and handle all deadlines. This is another reason why it is wise to hire an attorney who focuses on debt lawsuit defense.  Getting legal advice regarding consumer protection can go a long way in defending against a plaintiff in a debt collection case.

 

Obey Court Orders: Failure to follow court orders do so can result in adverse legal consequences.  This is different from the debt collection laws that creditors must follow prior to the debt lawsuit being filed.  If you fail to comply with a Court order the judge could ultimately hold you in contempt of Court.  This will not help in your path to debt relief, being held in contempt is not anything you want to mess with.

 

Prepare for the case Trial: A debt collection lawsuit often ends up in trial.  Many times there are multiple settings if it has been reset multiple times.   It’s important to get legal advice when faced with a debt collection lawsuit filed by Portfolio Recovery.  If you don’t have an attorney on your side, you are expected to understand the Court rules and procedures at trial.  If you are dealing with legal action against you, be sure to read all local rules of the Court as well as the applicable rules of civil procedure prior to attending your trial.

 

Consider Negotiating a Settlement:  You or your attorney may be able to negotiate a favorable debt settlement of the lawsuit as opposed to leaving it up to the judge at trial. This type of debt relief is often a wise resolution to eliminate the risks of trial but you must make sure there is a valid written debt settlement agreement to ensure the bad debt is actually resolved.   The last thing you want is to settle then have Portfolio Recovery come after you later claiming more unpaid credit card debt.

 

Hire a Debt Relief Law Firm on a Flat Fee – A debt relief attorney or a debt law firm is often your best bet when you are being sued for debt as they will provide you with debt collection defense.  Navigating the Court process for a debt claim can be complicated when served with a debt lawsuit.  Getting legal advice is key.  Additionally, you will likely be required to appear in Court one or more times. If you hire an attorney they will likely be able to appear for you so you don’t have to take off work to go to court multiple times.  You should know what the fee is going to be and avoid paying a lawyer by the hour since this could get very expensive.  At Weston Legal we only charge flat fees and we are very clear what the fees are as they are posted below.  We won’t ever charge any hidden fees or charge by the hour like most law firms.   Being a defendant in a debt collection lawsuit is not a fun process.