Dealing with a debt collection lawsuit can be a difficult challenge for anyone. Apart from this, a debt collection case can affect various areas of your life like finances and overall reputation. This is why many people struggle with debt defenses.
Fortunately for the person who is the subject of a debt collection case, they can establish a viable debt defense strategy. The first step is to obtain the services of a reputable debt defense attorney.
Now let’s look at a debt defense case and the different defense strategies your legal team can launch.
What you need to know about debt defense strategies
Most of us are familiar with the difficulties we associate with debts and remaining balances. Some of us have adequate methods to pay off our debts, but not everyone can pay their debts on time and face the consequences.
Debts can arise at some point in our lives. Professionals considering borrowing resources are aspiring entrepreneurs, business owners, or people who want to improve their financial situation. Hire a Texas Debt Defense The lawyer is the best solution for business people to protect themselves from cases related to debt.
People should learn about various debt defense cases when preparing a debt defense strategy. A famous example of a debt defense case comes from credit card debt. One credit card debt produces multiple collection cases. Nor is it surprising that other types of debt are giving rise to debt defense cases. Here are some examples of debts:
- Business loans
- Medical debts
- Education Loans
- Vehicle deficiency
Different outcomes can occur after creditors file a lawsuit related to the debt. The consumer may file a defense strategy or not respond against a debt defense case. The creditor can receive a default judgment if the consumer does nothing. After obtaining a default judgment, the creditor may use special remedies to obtain the remaining balance from the consumer.
Different Debt Defense Cases
Planning an effective defense against an existing debt collection case involves learning about existing debt defense cases. The objective of the protection is to prevent a person from paying the amount that a creditor demands of him. We advise you to hire a lawyer specializing in debt defense to represent your rights in court in order to mount an effective defense.
When you defend yourself in court, you must state this with your answer. The next step is to explain specific facts about your debt or a creditor’s complaint. It will be crucial to present valuable evidence, such as documents, to help your defense strategy during this process.
Debt payment completed
Various collection companies and creditors use third-party collectors to obtain the amount a debtor might owe them. However, misunderstandings can occur due to miscommunication, faulty software, or human error. When a debtor has fully repaid his debt, he no longer has the responsibility to repay the balance.
A creditor has agreed to treat a partial payment as a full payment
In debt negotiations, debtors sometimes treat partial payment as full payment. This can happen if they understand the situation a debtor is going through. There are still examples where debtors charge additional fees to debtors even after reaching an agreement. A person should not pay extra if a partial payment is accepted as full.
Payments not credited to a debtor’s account
When it comes to finances and calculated data, there are certain situations where creditors charge the wrong amount. Other examples might include debtors establishing another account not belonging to a debtor. If a person discovers that a creditor is charging them an incorrect amount, they can file a lawsuit in court or present it in a debt defense case.
The creditor waited too long before filing a complaint
When a creditor discovers an unpaid amount, they have a limited time to take legal action against a consumer. The time frame for filing a debt collection case may vary depending on each state. If a debtor discovers that a creditor has missed the deadline for filing a debt collection case, the lawsuit against him may disappear.
Debt collection cases do not involve similar issues or situations. To mount an effective defense against a debt collection lawsuit, a person must be familiar with the various debt collection cases they may face. In addition to this, it will be helpful to obtain the services of debt defense attorneys.