Facing a debt collection lawsuit can be a tough challenge for any person. Aside from that, a debt collection case can affect various areas of your life, like finances and overall reputation. It is why many individuals struggle against debt defenses.
Fortunately for the person undergoing a debt collection case, they can establish a viable debt defense strategy. The first step is obtaining the services of a trustworthy debt defense lawyer.
Let us now 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 know about the difficulties we associate with debts and remaining balances. Some of us have adequate methods to repay our debts, but not everyone can pay their debts on time and face the consequences.
Debts might occur at some point in our lives. Professionals considering borrowing resources are aspiring entrepreneurs, business owners, or people wanting to improve their financial standing. Hiring a Texas Debt Defense attorney is the best solution for business people to protect themselves from debt-related cases.
People should learn about various debt defense cases when preparing a debt defense strategy. One famous example of a debt defense case comes from credit card debt. A credit card debt produces multiple cases for collection. It is also not a surprise that other types of debt result in debt defense cases. Some debt examples are:
- Business Loans
- Medical Debts
- Educational Loans
- Vehicle Deficiency
Different results can occur after creditors file a debt-related lawsuit. The consumer can file a defense strategy or not respond against a debt defense case. The creditor can receive a default judgment if the consumer does not do anything. Upon getting a default judgment, the creditor can 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 protection is to prevent a person from paying the amount a creditor is charging them. We advise you to get a debt-defense lawyer to represent your rights in court to mount an effective defense.
When defending yourself in court, you should state it with your answer. The next step is explaining specific facts concerning your debt or the complaint from a creditor. It will be crucial to present valuable evidence, such as documents, to aid your defense strategy during this process.
Debt Payment is Complete
Various collection companies and creditors deploy third-party collectors to obtain the amount a debtor might owe them. However, misunderstandings can happen due to miscommunication, faulty software, or human error. When a debtor has paid their debt completely, they don’t have the responsibility to pay the balance again.
A Creditor Agreed to Consider a Partial Payment as Full Payment
During debt negotiations, debtees sometimes consider a partial payment a complete payment. It can happen if they understand the situation a debtor is experiencing. There are still some examples where debtees charge debtors extra fees even after completing an agreement. A person should not pay additional if a partial payment is accepted as complete.
Payments Not Credited to a Debtor’s Account
Regarding finances and calculated data, there are some situations where creditors charge the wrong amount. Other examples might include debtees setting another account not belonging to a debtor. If a person discovers that a creditor is charging them an incorrect amount, they can file a complaint in court or present it during a debt defense case.
The Creditor Waited Too Long Before Filing a Case
When a creditor discovers an unpaid amount, they have a limited time frame for filing a lawsuit against a consumer. The amount of time for filing a debt collections case may vary depending on each state. If a debtor discovers that a creditor is past the allotted time to file a debt collection case, the lawsuit against them can disappear.
Debt collection cases do not involve similar issues or situations. To mount an effective defense against a debt-collection lawsuit, a person should be familiar with the various debt collection cases they can face. On top of that, it will be helpful to get the services of debt defense attorneys.