Sued By Velocity Investments LLC for Debt?

If you have been sued by debt collector Velocity Investments, it means that Velocity has taken legal action against you in an attempt to collect a debt that they claim you owe. When you are sued by a debt collection agency, it is crucial to take the matter seriously and respond appropriately when being pursued by Velocity Investments for unpaid credit card debt.

Don’t Simply Ignore a Debt Collection Lawsuit 

Ignoring a lawsuit will result in a default judgment against you, potentially leading to garnishment of your bank account or wages, depending on state laws. A lawsuit is far more significant than a simple collection letter, as it involves a court process that could allow Velocity Investments to seize some of your assets or place a lien on your property. They can file lawsuits in District Court or lower courts. A debt lawsuit is much more serious than merely having a negative mark 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.

Retain an Attorney on a Fixed Fee

When Velocity Investments takes legal action against you, navigating the court process for a debt claim can be complicated. Getting legal advice is crucial. Additionally, you will likely need to appear in court one or more times. If you hire an attorney, they can often appear on your behalf. Opt for an attorney who charges a flat fee to avoid the potentially high costs of hourly billing. Being a defendant in a debt collection lawsuit is not an enjoyable experience, and knowing the fixed cost of legal representation can help alleviate some stress.

Responding to a Complaint 

If you are sued by a plaintiff debt buyer such as Velocity Investments over an alleged debt, you must file an answer with the court within a specified deadline, typically ranging from 14 to 30 days from the date you were served. The exact deadline depends on the court where the case was filed. In your answer, it is crucial to generally deny Velocity Investments’s allegations; otherwise, you may inadvertently admit to owing the debt.

List Defenses

 A Velocity Investments lawsuit requires 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.  Velocity Investments t may not be able to show adequate documentation from the original creditor.  If so, you need to explain this to the judge as the defendant. 

Prepare for All Court Dates

When a debt buyer sues you for credit card debt, the court will set deadlines and schedule hearings for your case. It is essential to attend all hearings and meet all deadlines. Hiring an attorney who specializes in debt lawsuit defense can be very beneficial. Legal advice on consumer protection can greatly assist in defending against a debt collector in a debt collection case

Read Court Orders Carefully

Adhere to any court orders or rulings. Failing to do so can lead to further legal consequences. This differs from the debt collection laws that creditors must follow before filing a debt collection lawsuit. You need to read every order carefully and also search for any specific local rules of the Court.

Gear up for Trial

A debt collection lawsuit often proceeds to trial if negotiations fail. Collaborate with your attorney to prepare a strong defense and gather evidence to support your case. Obtaining sound legal advice is crucial when facing a debt collection lawsuit filed by an agency like Velocity Investments. Often, they may not provide sufficient documentation from the original creditor. As debt buyers, they are required to present specific documentation at trial.

Consider Settlement to Avoid the Risk of Trial

Even if the creditor has produced lackluster documentation, settlement should still be considered because some judges simply aren’t concerned with the evidence.  They may take the approach of “did you have a debt or not” as opposed to whether or not the debt buyer has met their legal burden to prove their case.  Unfortunately this risk is something that is difficult to overcome and thus settlement should usually always be considered regardless of the evidence presented.

Bankruptcy Options

If you have multiple debts beyond just the Velocity Investments debt, bankruptcy might be a viable option. Bankruptcy can relieve you of your obligations from Velocity Investments lawsuits and other bad debts, including credit card and other consumer debts. At Weston Legal, we offer a variety of debt relief options in select jurisdictions. Contact us to see if we can assist with your situation.