Why am I getting letters from bankruptcy lawyers before I get served with the collection lawsuit?
“Why am I getting letters from bankruptcy lawyers before I get served with the collection lawsuit?”
They then tell you that bankruptcy can be a wonderful solution and without any other information you should give them a call as time is running out.
Let’s look at this….
There is some good that comes from these letters — it is like an early warning system that a collection lawsuit is coming.
Take advantage of the warning — almost like a radar — that tells you something bad is about to hit. In this case, it is a lawsuit filed by a collection lawyer.
Don’t do the following:
- Get mad and so ignore everything you receive afterward;
- Assume no collector or creditor can sue you because a second cousin’s ex-wife told you that’s the law;
- Decide to not open any more mail; and
- Hope it will all just go away and you won’t have to do anything.
Instead, do this:
- Take this warning seriously by investigating if you have been sued;
- You can call the court in the county where you live to see if you have been sued;
- You can call my firm and we’ll look it for you (205-879-2447); and
- Start to investigate your options so you can discover which option is best for you.
Bankruptcy can be a valid option if you have no other viable options.
Bankruptcy is extreme.
In the right circumstance, it is extremely effective.
But when it is not necessary it is like cutting off your arm because you broke your pinky finger. I guess it works, but it is way too much of an over-reaction.
Here is when bankruptcy is appropriate — when you don’t have a legitimate chance of paying off your debts any other way. When you are trapped in a never-ending cycle of high-interest rates, late fees, and you have no way out.
So yes bankruptcy can be an option — and it may be your best and only option — so investigate it as you look into the five options everyone has when sued (see below).
Time is not your friend so you need to act quickly but you should not rush into it.
You’ve been warned by the letters. Now, you need to take action after you have figured out what to do.
Let me ask you this:
Which direction should you take to get to Montgomery, Alabama?
Well, it depends, doesn’t it?
Are you in Mobile? Or Auburn? Tuscaloosa? Birmingham? Huntsville?
Different answers depending on where you are right now. This is why your GPS has to determine your “current location” before it can tell you where to go.
Same thing when you have been sued.
- Who sued you?
- What court?
- For how much?
- Who is the collection lawyer?
- What is your financial situation?
- Do you prefer to do things yourself or hire professionals to handle it?
So don’t make a hasty decision — figure out your options — and then act decisively.
You should educate yourself on all of your legitimate options — you normally have five, not just bankruptcy.
Your five options include:
- Filing bankruptcy, particularly Chapter 7 bankruptcy which can wipe out all of your deb including the lawsuit;
- Fight the lawsuit on your own with the goal to win it which has excellent consequences for you;
- Settle the lawsuit on your own;
- Hire a lawyer to fight the lawsuit to win it; and
- Hire a lawyer to help you settle the case.
So, which option is best for you in your collection lawsuit?
It depends. For some, bankruptcy is the right option.
Others prefer to fight the lawsuit and we have many clients who have done this successfully and then hired us to sue the debt collector who brought the bogus lawsuit against them along with the false credit reporting the debt buyer was guilty of doing.
Then sometimes the best option is, particularly on a small collection lawsuit where sued for $500 or $750, to settle the case on your own. We often see false credit reporting after this so be mindful of this.
Some clients prefer to hire us to fight the case or to settle it. Normally when we settle a case this is where both sides agree to not sue each other and the debt buyer gets rid of credit reporting.
But each situation is different so check out all of your options. Any lawyer you talk to should be able to explain the good and bad of each of these five options — if not, then decide if you want to continue to talk to that lawyer who can’t or won’t explain all of your options.
If you want to talk about your collection lawsuit options, let us know and we’ll be happy to help.
We represent many consumers sued by debt collectors and original creditors. We also sue debt collectors and original creditors after we beat them in trial — for example we have recently sued Capital One and Discover Bank for losing at trial and then refusing to delete the credit reporting which can violate the Fair Credit Reporting Act (FCRA).
If you want to talk to us, give us a call at 205-879-2447 and tell the receptionist you have been sued and want to talk to Carolyn who will help you determine who sued you for what and where and when and then they will set up a call or meeting with me. You are also welcome to fill out this web form here and we will get right back to you as soon as possible.
Thanks for reading, and have a great day!