An experienced debt defense law firm knows the intricacies of these situations and how to work with collectors to make them see the benefit of a settlement.
You’ve been sued for an old debt—now what? Lenders and debt collectors may file a lawsuit when they cannot reach debtors directly to secure payment. A successful lawsuit may result in wage garnishment or other devastating financial consequences, so it is crucial that you respond quickly and explore your options. Working with an Edinburg debt defense attorney is critical at this step.
At Garza Law Office, PLLC, you can count on experienced and compassionate representation. Attorney Dora Alicia Garza is passionate about helping clients advocate for themselves and protect their financial futures as they handle their debt. Call us at 956-329-1304 to find out how our debt defense law firm can help you through this challenging time.
Review Your Documents
Before you panic or assume the worst, take some time to review your documents. You want to know exactly what the claims against you are and whether or not they are accurate. First, is the debt familiar to you? Many people who are sued for a debt have had it in the back of their mind for months or years, but never took action to resolve it. If that’s the situation you’re in, it’s likely a matter of figuring out if the amount is accurate and if the statute of limitations has expired.
If the debt is completely new to you, it’s time to go over your credit report and figure out if it’s truly your debt or not. If you’re facing a case of identity theft, that’s a defense to the lawsuit and can help you start taking steps to figure out what happened.
If the debt is yours, look at the amount listed in the complaint. It should be broken down into the initial debt, interest, and legal fees. Try to figure out if the debt is still within the statute of limitations—if the statute of limitations has expired, that too is a valid defense.
Consider Reaching Out to a Debt Defense Lawyer
Once you’ve taken the time to look over your documents, it may be time to talk to a debt defense attorney. Creditors are often willing to settle, and in fact, they may have even offered a settlement before filing a lawsuit. However, you may struggle to negotiate a settlement on your own. By the time creditors reach the point of suing a debtor, they have often put extensive time into the case. The idea of a settlement may no longer be on the table, due to the time and expense put into filing a lawsuit. Your debt defense law firm may be able to revisit the discussion and figure out whether or not they’re open to a settlement.
Negotiate a Settlement
Negotiating a settlement is a balancing act. You have leverage, and working with a debt defense lawyer may allow you to use that leverage most effectively. Both parties benefit from settling a debt before court. For the debtor, going to court could mean being ordered to pay the debt in full, including the other party’s legal fees. That’s even worse than just paying the debt in full from the beginning. For the creditor, going to court means spending time and money on preparing for trial. They also run the risk of the court ruling against them, and in that case, all of their time and money is wasted. Settling hedges your bets. The creditor gets some of what they are owed, so they at least aren’t left with nothing. The debtor pays less than the full amount, so they save some money and prevent liens or garnishments.
An experienced debt defense law firm knows the intricacies of these situations and how to work with collectors to make them see the benefit of a settlement. From there, they can negotiate on your behalf to help you avoid court and minimize the risk of enforced collection actions.
Explore Your Options With Garza Law Office, PLLC
If you owe money and you’re being sued for it, you may be able to avoid court by settling. We can help. To discuss your case and your legal options in greater detail, call our firm at 956-329-1304 or reach out online.
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