Gorski Law
Pennylvania & New Jersey Consumer Rights Law Firm
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Collection Lawsuits

Information about how to handle a collection lawsuit is  discussed as well as circumstances where a lawsuit is brought against a person who doesn't owe the debt or for a debt that was already paid.

COLLECTION LAWSUITS

Receiving notice that you are being sued by a creditor can be both confusing and upsetting.  The worst thing you can do is ignore the lawsuit. If you do nothing, the creditor will be able to obtain a default judgment against you without having to do anything to prove that a debt belongs to you or is for the accurate amount. The judgment will then end up on your credit report and cause additional harm to your credit rating. Responding to the lawsuit and appearing for you case will not make your situation any worse.  You only stand to gain by responding to the lawsuit. Consider these situations, when you find out you are being sued:

Does the Debt Belong To You

Many times people ignore a collection lawsuit because they believe the debt does not belong to them or that the creditor or collector has made a mistake. Having a lawsuit filed against you when a debt does not belong to you is a serious matter. It is critical you take action to have the lawsuit against you dropped or dismissed by the court to avoid having a default judgment entered against you for a debt you do not even owe. Additionally, a creditor or collector who initiates a lawsuit against you when you are not responsible for the debt may make the creditor or collector liable to you in many states for malicious prosecution.  In this instance, you should consider consulting with a lawyer.

Has The Debt Already Been Paid

Another reason people ignore a collection lawsuit is because they believe the debt has already been paid. Having a lawsuit filed against you when you have already paid a debt again is a serious matter you should not ignore.  It is likewise very important that you take action to have the lawsuit against you dropped or dismissed by the court to avoid having a default judgment entered against you for a debt you do not even owe anymore. A credit or collector who initiates a lawsuit against you when you have already paid a debt may make the creditor or collector liable to you in many states for malicious prosecution. In this instance, you should also consider consulting with a lawyer.

Responding To The Lawsuit Has Advantages

Even if you are confident that the debt does actually belong to you, and you don't have the means to pay the debt, responding to the lawsuit still has advantages.  In a collection lawsuit, a creditor has the burden of proving the debt belongs to you and the amount that is owed. Creditors routinely are not prepared to prove that a debt belongs to you or to prove the amount owed. Creditors usually assume that they will be able to obtain a default judgment without having to prove anything. If you appear in court, the creditor may be unable to sustain its burden of proving you owe the debt and the case against you will be dismissed by the court. Alternatively, even if the creditor is prepared, the creditor is often willing to forego obtaining a judgment against you and negotiate a settlement for a lesser amount or for a payment plan.  Negotiating a settlement with the collector can be a positive alternative because it avoids a judgment from being entered against you which will harm your credit rating and can affect other aspects of your life such as job application or attempting to purchase property.  

Do You Need Help?

If you believe you have been sued by a creditor in error or you have already paid the debt that you are being sued over , Gorski Law may be able to help. Gorski Law can help with obtaining a dismissal of the lawsuit and obtain compensation for any harm you have experienced as result of the creditor's conduct. Initial consultations are always free. Call 215-330-2100 or email the firm to schedule a consultation now.