An attorney is required if you are accused of a petty crime. What if you owe a debt you cannot pay? How do you handle the situation? When is it best to hire a Florida debt collection defense lawyer? You may be afraid to seek legal assistance if you’re already in debt. A lawyer can help you save money and get your life back on track. However, you don’t always need to hire a lawyer. Let’s take a look at some of the things you need to consider.
Are You Rolling Debt?
First, you need to determine if you owe the money that the debt collector claims. If the creditor insists that you pay it, then it is probably time to hire an attorney to help you before the situation gets worse.
What Do You Owe?
You should weigh the amount you owe against the cost of hiring an attorney, even if your defense is strong enough to defend a lawsuit. You should also consider the possibility that the debtor could ask the court for interest, attorney fees, and court costs. Fees and interest add up quickly. A skilled debt collection attorney will likely be more successful in settling your debt for a lower amount than you would. If you owe only a small amount that you can pay off, a Florida debt collection lawyer is probably not necessary.
Are You Judgment-Proof?
Will a creditor be able to collect if they take you to court? Are you able to work, own property, or have a bank account? Even if your financial situation is improving, it will still hang over your head for some time. To determine if your case is judge-proof, and if it’s worth hiring a lawyer in Florida, speak to a competent Florida debt collection attorney. Make your decision.
Are You Being Sued?
The urgency of your case increases once you are in court. You have just 20 days in Florida to respond to a court complaint. The court will most likely order a default judgment against you if you fail to respond to a debt collection lawsuit. This judgment will be in accordance with the amount requested by the plaintiff creditor. If you don’t take steps to defend yourself, the total can easily exceed your owe. This includes costs, interest, and fees. Even if you respond, you must still appear in court for your hearing.
Once they have a judgment against you, they can take action to garnish your wages, seize bank accounts, and place a lien on the property. They can also subpoena records of your bank, mortgage lender, and other loan holders. They may also subpoena your attendance at court to answer any questions regarding your finances. You could be charged with contempt if you fail to appear in court. This means that if you don’t respond to a creditor’s lawsuit, you could be charged with contempt of court. A good Florida debt collection defense lawyer is necessary if you are sued and cannot agree to terms.
What Do You Know?
The intricacies of counterclaims and defenses are something that debt collection defense lawyers know. They do this for a living. If you have substantial funds to spare, it is worth hiring an attorney. You should meet with an attorney to discuss your options. Let’s look at some possible defenses and counterclaims to help you get out of debt.
Possible Defenses
An argument is a defense that explains why you aren’t responsible for the debt, or why the creditor should be legally unable to collect.
These are some common defenses.
- The statute of limitations has expired, which is the maximum time a creditor can sue for debt collection.
- The wrong court was used by the creditor
- The creditor can’t produce the documentation required to prove that you owe the debt. This is often the case when a debt buyer files a lawsuit.
Counterclaims
You can file a counterclaim against the creditor that sued you. Federal consumer laws provide protection against unfair debt collection practices. Collection agencies who violate them are subject to severe penalties. You may still owe the debt if you win your counterclaim but you might be able to recover money damages. Sometimes, a strong counterclaim can force a creditor not to sue or to withdraw its lawsuit.
Here are some examples of possible counterclaims:
- Illegal harassment and abuse, such as collection agents calling friends, employers, or any other third party about your debt (except in limited circumstances like help in locating you), is illegal harassment. A collection agent calling you at odd hours or constantly is harassment.
- A collection agent may misrepresent themselves as a government official, or an employee of a credit-reporting agency.
- Unfair practices, such as unsubstantiated legal threats
- False information about you given to third parties
- False correspondence, such as letters appearing to come from a government agency.
What Will It Cost To Hire A Florida Debt Collection Defense Attorney?
A lot of Florida debt collection attorneys offer a free initial consultation. This is where you can ask questions and find out what it will cost to continue with your legal representation. There are many options. You can choose to pay a flat fee, an hourly rate, or a percentage of the amount that the attorney saves. Sometimes, the court might order your creditor to pay your attorney fees.
An attorney can help you save money, not spend more. It is a disservice to not speak to an attorney about your options and the cost of legal representation.
Should You Consider Bankruptcy?
In some cases, declaring bankruptcy is better than defending against lawsuits for debt collection, especially if you have multiple creditors. You should speak to an experienced attorney in both debt collection defense and bankruptcy.
This post was written by Trey Wright, a lawyer with extensive experience as bankruptcy attorneys in Panama City Florida! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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