Answering a Summons

Credit card companies may press charges against delinquent debtors whose accounts are left unpaid for a specific period of time. If you are facing a credit card lawsuit, you will be notified via a summons and complaint sent to your last known address. A summons is a request that you have to appear in court, served by the sheriff or an appointed person who has no involvement to the case. The summons may also be sent via certified mail return receipt requested.

When the summons and complaint is received, you are given a specific period of time to file your response. In most state, defendants are given 20 days to file their answer to the summons. If you don’t file the answer to the summons in time, the judge has no choice but to rule a judgment against you. This is why it is critical to send an answer on time. Being sued by a credit card company may seem daunting but if you know the process, you can get away with a favorable decision without hiring an attorney. 

If you received a summons and complaint for unpaid credit card balance and you have no idea how to draft an appropriate response to a summons, here’s a quick, step by step guide on how to respond to a summons the right way:

Step 1: Read The Summons Thoroughly

When being sued, you will receive two types of documents, the summons and complaint. From the summons, you will know pertinent information relating to the lawsuit while the complaint will list down the allegations made against you. The best place to start is to check the case caption which is listed at the top of the complaint.

Step 2: Know How Much Time You Need To File an Answer

Filing an answer to the summons is important. Civil lawsuits require the defendant (that’s you) to file an answer within a specified period. The specified period to file the answer will depend on the nature of the case and the jurisdiction. Check the summons how much time you have to file an answer or contact your local court clerk and ask for the specified period to do so. In most state, respondents are given 20 days to file an answer. Approach the court clerk to ask for the Notice of Appearance document. Fill out the form, sign it and return the document to the court clerk. This has to be done whether or not you really owe the debt.

Step 3: Determine The Debt’s Age

If you know you owe the debt, check its age. Each state has an imposed period where creditors may pursue delinquent debtors legally, known as the Statute of Limitations (SoL). To check your state’s SoL, you may either call your Attorney General’s office or check online.

Step 4: How To Respond To a Summons for Credit Card Lawsuit

Once you find out the nature of the lawsuit filed against you, you should start drafting an answer to the summons and complaint. From the Notice of Intention to Defend, fill this section with a response. Your response should include a detailed explanation as to why you are not responsible for the debt. The reasons for not being legally responsible for a debt may range from simple mistaken identity or the debt is out of statutes. Filling up this section confirms that you will appear in court and are expected to present your defenses for the allegations.

After completing the response, cut the Notice of Intention to Defend and file it to court. In turn, the court will notify the opposing party of your intention to defend the claim. Usually, the opposing party will think twice about going further with the case at this point.

Most creditors or debt collection companies assume that debtors don’t know a thing about defending themselves in court so they expect an easy victory. By answering the summons and showing your willingness to defend yourself in court, most creditors would rather drop the case instead of spending more money on legal costs. If they see that they will have to wrestle a judgment from you, they will stop pursuing the case altogether. So make sure you know the basics of drafting a response to a summons and check local court rules for more information.

What To Do When Negotiating Settlement For Debts

Working out a settlement deal with a creditor or a debt collection might sound intimidating but it's actually easy when you know what to expect. Apart from getting a reasonable amount to repay the debt, you can also minimize the damage the debt will cause to your credit report. The good news is, a large majority of collection companies and creditors are willing to take less than the original amount of money owed.

Debtors can either shoot for an installment basis of repayment or pay a lump sum to get rid of the debt completely. Whichever way you chose to repay the debt, it is important to know what you can and hat you cannot do during the negotiation period. Below are some tips you should keep in mind when dealing with a debt collection company or creditor:

Set Your Emotions Aside
Don't let anger, guilt, shame or embarrassment break down communication between you and your creditor. It's best to address the issue calmly and be honest about your financial situation with your creditor. Getting upset or crying will only make communication difficult so set aside whatever emotional issues you have attached with the debt and ask for options instead. Choose the option which suits your current financial situation and settle the debt as soon as you can.

Stop Spending!
If you have mounting credit card debts to think about, the only logical thing to do is to stop using your credit cards and close most of your accounts to stop the accruing interest charges and minimize penalty fees. Once you closed these accounts, try to negotiate for a smaller amount of repayment and set it in an installment basis. Offer as low as 30% of the original debt amount and work from there.

Repair Your Credit
Unpaid debts cause negative impact on one's credit report which is why it is important to repair your credit as soon as you start paying off what you owe. Here's a great tip, ask your creditor or collection company to note that the debt is paid off satisfactorily rather than less than what was due. This might not entirely remove the bad marks but it will improve your credit history that you will be able to apply for bigger loans and mortgages easily in the future.

Keep all the tips above in mind to reach a reasonable settlement. However, if you are not sure about negotiating with your creditor or collection agency on your own, you can always consult an experienced debt collection lawyer to guide you through this ordeal.

A Thing Of The Past: Unfair Debt Collection

Evidence of deceptive, abusive and gross misrepresentation by debt collectors companies have been found in abundance with years of unsavory behaviors on record. As such, Fair Debt Collection Practices Act or FDCPA was passed by the Congress in 1977 to minimize the escalating cases of abusive and unfair debt collection practices in the country.

One of the most common concerns regards unpaid debts include the number of attempts collection agents can call regarding the owed money. It can be quite a nerve-wracking experience to be on the receiving end of these collection calls and letters. Under the FDCPA, debtors can set boundaries as far as collection efforts are concerned. Collection companies can no longer call debtors at the dead of the night or extremely early in the morning to collect. They can no longer call them from work without permission. They can no longer call at any time they want. If they do, debtors can file a complaint and collect a fine. However, debtors need to provide documented evidence proving that abusive debt collectors or junk debt buyers have violated their rights.

Very old, out of statutes debts can no longer be collected. This means collection companies can no longer threaten debtors with a credit card lawsuit or file a credit card lawsuit for out of statutes debts, for that matter. Even if the debt is within statutes, collection companies cannot simply threaten debtors with a credit card lawsuit without any follow through.

It is important to check the statutes of limitations as well as the local court laws in your state if you are dealing with debt claims. The fact is, nothing is preventing debt collectors from making false representation on debt statuses at all. This is why it is important for debtors to take the liberty of knowing more about consumer rights laws and how to deal with abusive collection companies. This is why you should never pay a debt unless you are sure that all information given to you are verified. Anyone can send collection letters and phone calls but if these debt claims don’t come with all information that pins down the ownership of the debts to you, you have to dispute the claim.

If you are disputing a debt, make sure you have all the evidences you need to prove your own claim. You will need to have documented proof if you want your claims to hold weight in court.

Debt Settlement Companies: Should You Trust Them?

Many debtors work with debt settlement companies, being required to pay the money via escrow and once the fund reaches a certain amount, the company will try to settle the accounts for them. Unfortunately, most of the payments debtors make only covers the extra service charge and other fees that debt settlement companies make them pay. If you have been paying less than a thousand dollars for ten months and your debt, settlement company hasn’t even contacted your creditor, who gets all the benefits? You, your creditor, or the debt settlement company? The answer is pretty obvious.

While you pay hundreds of dollars for almost a year, your creditor will get tired of waiting and your debt settlement company will continuously collect all your hard-earned money. It’s not surprising that many debtors lose all their cash after their creditors filed credit card lawsuit. Most debt settlement companies are in it for the money, so debtors need to tread carefully before they agree into something that these companies offer. If the offer is too good to be true, it probably is.

You are much better off handling your legal and financial problems yourself rather than trusting a debt settlement company to pool all your cash and work with your creditor. After all, why settle working with a middle person when you and your creditor can strike a deal on your own?

It’s no surprise that many debt settlement companies are being deemed as a scam or at best, totally incompetent in terms of settling the debt. When in doubt, it is always better to check other options you have. You can either hire an attorney to deal with the credit card lawsuit, in case your creditor pressed charges against you, or if not, get the attorney to work out a sensible repayment deal with the creditor.

On the other hand, if you cannot afford a lawyer, you can always research on how to properly negotiate a debt settlement with your creditor directly. Don’t wait until your creditor decides to file a credit card lawsuit, give the right person a call, initiate the negotiations and propose a payment plan you can afford.

However, if your creditor filed a credit card lawsuit, you can always check online or purchase eBooks on how to properly represent yourself in court. Familiarize yourself about state laws, federal laws and court rules in your area if you are presenting yourself  Pro Se, in court.

Fair Credit Reporting: What You Need To Know Now

Debt collectors have always been linked to harassment, threats and use of profane language to extract debt payments, especially old debts, despite laws enforced to protect consumer rights. Out of statutes debts will be sold and resold and often, those who purchased the accounts will not hesitate to step on a few toes just to make a successful collection.

Unfortunately, unpaid debts, old and new, will cause a negative impact on your credit. Worse, some debt collectors will even try to falsely report negative remarks on major credit reporting bureaus without verifying the identities of the debtor or without waiting for the debtor to dispute the alleged debt.

This isn’t exactly a new collection tactic; many debtors will even try to report out of statutes debts in a bid to cause negative effects on debtors’ credit report. This is a major concern for many because employers and even landlords usually checks the credit of an applicant and if they see bad marks on one’s credit, their application will be rejected.

Now, the good news is, there are actually laws in place which gives consumer more rights to their own credit reports. For example, you can dispute a false claim that has been made on your credit report, in writing. You will also need to get in touch with the credit reporting agency to have them investigate the discrepancy on your report and report the result of the investigation to you. If the statement made by the debt collection company is indeed false, the statement will be removed from your report.

This means it is important to request a copy of your credit report, especially if you have old, charged off credit card accounts with unpaid debts.

Under the Fair Credit Reporting Act or FCRA, everyone is entitled a free copy of credit report from the three major credit reporting bureaus once a year. To request a copy of your credit report, go to a credit reporting bureau's website and request for one. The Fair Credit Reporting Act or FCRA give debtors the power to control their credit history and dispute false debt claims that could cause negative effects on credit reports.

Once you receive your free credit report, you can check outstanding balances that need to be repaid or, if you have an existing credit dispute with a debt collector agency or creditor, you can check if the debt in question is within or beyond statutes.

What To Do Next When You Got A Collection Letter In The Mail

With the unstable economy and an unsure future of most businesses, the last thing you need is a credit card debt collection letter landing in your mail. Unfortunately, this happens to hundreds of people across the country. It’s their reality. If such is the case, don’t panic. There are steps you can state in order to address the issue and even stop your debt collector from filing a credit card lawsuit.

Immediate Respond To Request Validation of The Debt

Debt collectors do not have the right to ask debtors to pay the alleged debt without proving the debts’ ownership. Note that the burden to ask for credit card debt evidence is on you. Simply respond to the collection letter with a request for debt validation, within 30 days of receiving the collection letter. If you ignore the letter, you are only increasing your chances of facing a credit card lawsuit. If you request a debt validation, you give yourself more time to figure out your next move. Make sure to send the debt validation request via certified mail with a return receipt requested.

Check Your State’s Statute of Limitations

Did you know that debt collectors only got a limited time to collect debts otherwise, they are no longer allowed to pursue the debt or file credit card lawsuit? As soon as you are notified about the debt, check your state’s Statute of Limitations for consumer debts through your Attorney General’s website. If the debt is out of statute, your debt collector cannot collect the money or file a credit card lawsuit and use wage garnishment or property lien as ways to get you to pay the debt.

Do note that some states reactivate statute of limitations as soon as you repay the debt! So don’t pay the debt without knowing the next move you take. If the debt is out of statute, simply ignore the collection letter or send a letter to the creditor letting them know that the legal collections stage has passed. If the debt is within statute, don’t be too quick to start payments because this will bring back the statute clock. Instead, consult an attorney or educate yourself on the right defenses to use if the creditor files a credit card lawsuit against you.

Know Your Rights

Lastly, it is important to familiarize yourself with the Fair Debt Collection Practices Act, particularly if you came across rude, aggressive debt collectors who will stop at nothing to get the money you allegedly owe. Most debt collectors are hoping you know nothing about consumer rights and will try to squeeze every last penny from you so don’t be a victim and fight back.

How To Negotiate With A Debt Collection When You Got No Budget For Repayment

In most cases, creditors who are pursuing debtors will make them feel like they got the upper hand when negotiation starts. They will try every trick in book to collect from debtors including threatening phone calls, harassing letters and even phoning you from where you work. If you can settle dispute, they will stop all the annoying phone calls and letters. But this is easier said than done if you don’t have the budget to repay everything. If you don’t have the money, is there are way to resolve the debt and quite possibly avoid a credit card lawsuit. In this article, we will discuss ways in which you can settle your debt, avoid a credit card lawsuit, all without having the budget to pay off debts:

Don’t let the debt collector know about not having the money to repay the debt. What many debtors don’t know is that they are not obliged to reveal their financial status to the debt collectors. Also, you want the debt collector to be under the impression that you can pay the debt so they will make things easier for you, in terms of resolving the debt.

Offer an amount 50% to 75% lower than the original debt amount. Debt collectors and creditors alike would rather collect a small sum rather than not getting any money at all. You might not have the cash to pay the debt right now but a massive discount on your debt could make it easier to repay the debt in the future.

Offer an installment payment plan. Shooting for a monthly payment plan will give you leeway to save up and pay up. In addition to all that, you don’t need to pay a lump sum, which is unrealistic if you barely have enough cash to pay daily expenses. If you show the creditor that you are making efforts to pay the debt, they might go easy on you and grant your request.

Dealing with the debt in person. In most times, talking to a creditor or debt collector in person should be discouraged but desperate times require desperate measures. A few facts to remember when you do speak with your creditor or debt collector, note the name of the person you are talking to, keep a good record of the conversation and put everything in writing. Finally, never let the other person know you do not have money to repay the debt!

Be assertive yet polite. Give your creditor or debt collector the impression that you are familiar with the Fair Credit Reporting Act so they do not try to intimidate you using scare tactics. When negotiating with a creditor, it is important to say your piece politely, while also keeping your dignity intact.

Protecting Consumer Rights Under The Fair Debt Collection Practices Act

Debtors are expected to repay the debt they incurred within the given terms of the contract. Unfortunately, a number of debtors got debts so high, they are unable of repay them at all. Creditors have the right to collect the debt, with a few limits, of course. The Fair Debt Collection Practices Act or FDCPA is enacted by the congress to stop abusive debt collectors from applying aggressive collection efforts, including using threats or intimidation to get debtors to pay up.

The FDCPA protects consumer rights related in personal and household debts or consumer debts including phone bills, credit card bills, medical bills, etc. Do note that this Act is only pursuing debt collection and not creditors.

As a debtor, it is important to know what you can do to protect your rights against unscrupulous debt collectors. Below are debt collection efforts that debt collectors cannot apply under the FDCPA:

* Calling at 8 in the morning or 9 in the evening, your local time
* Phoning you at work after telling them not to
* Calling you when you have a legal representation (contact the agency and leave your attorney's contact details for future communications)
* Contacting you through postcard
* Misrepresentation, profane, obscene, language
* Discussing confidential debt information to a third party
* Publishing your personal details
* Reporting inaccurate information to credit bureaus
* Threatening you with a credit card lawsuit
* Threatening you with wage garnishment
* Threatening you with property lien
* Using fake names or claiming to work in a credit bureau

Debtors' Rights:

One: You have the right to arrange a payment plan that both parties can agree to (get this in writing and include the date, the name of the person and the time).

Two: You have the right to request collectors to stop contacting you.

Three: File a complaint to the Federal Trade Commission when a collection agency violated your rights as a consumer.

Four: Take legal action against a collection agency when your rights are violation. You will need to hire an attorney who has extensive experience in fighting debt collectors.

As a consumer, you should be aware of your rights and what you need to do in order to protect yourself against abusive debt collectors. Therefore, educating yourself about the enforced law against unscrupulous collection practices is a must. Start with knowing more about consumer rights laws under the FDCPA as well as local court rules in your state, in case your creditor decides to file a credit card lawsuit for your unpaid balance. This is one of the best ways to fight deb claims without hiring an attorney.

Learn how you can handle answering a summons on your own and WIN your case! This groundbreaking eDocument will help you end all debt claims and fight credit card lawsuit! 

Visit http://answeringasummons.com for more information.