Can a debt buyer really sue me in Alabama?
“Can a debt buyer really sue me in Alabama?”
This is a question that is asked often. Hopefully this article will answer your question.
First off, it is legal to buy debt
A company can buy old credit card debt, or maybe deficiencies after repossession of an automobile.
It is legal to buy debt, but this isn’t where the analysis ends.
The debt buyer has to prove it owns the debt
It may be legal to buy the debt, but the debt buyer has to show in court that it owns that debt, and that they truly bought it.
Think about your car, or your home.
You have to prove you own it with a chain of title.
When you buy your house from someone, you want to make sure the person you bought it from had a “good title” to the house.
This is the same with a car.
So, these guys who claim to own debt may be the fourth, fifth, or sixth in line of buying this debt.
They still have to prove that they own that debt, and that the person they bought it from owned the debt. Even then you have to keep going back all the way until you get to the original creditor.
So many of the debt buyers cannot– or will not– prove ownership
Now, in some ways we don’t even care.
When they sue you, it’s their burden to prove that.
If they choose not to prove it, it still means that you will win.
If they can’t prove it, it still means you will win.
Even if they prove ownership, many of the claims are outside the statute of limitations
This is a big “if” that we’re talking about.
I’ve been working in this area of the law for many years and I don’t see them in court proving they own the debt.
But even if they can prove they own it, there are still other defenses.
One example is that their claims may be outside the statute of limitations.
In other words, they waited too long to sue.
The bottom line is that suing may be legal in general terms, but the lawsuit against you may violate Alabama or Federal Law.
It might be a malicious prosecution (Alabama law) case where they sue you and they have no proof.
It could violate the FDCPA, Fair Debt Collection Practices Act, because they sued you outside the statute of limitations.
It may be that they have no proof.
They may even be suing you for more than you owe.
There’s all sorts of reasons why the lawsuit, while in general terms it may be legal to sue you, may be illegal.
Find out your rights and 5 options– these are so much more than simply bankruptcy
So many people, when they’re sued, say that bankruptcy is their only option.
That’s one option.
You have 4 other options, which gives you a total of 5 options.
You can discover more about your five (5) options when sued so you can make the best choice for you.
Feel free to contact us
If you have any questions or comments that are of a general nature, please feel free to put them in a comment below.
If you live in Alabama, and you have a specific question for us, feel free to get in touch with us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you as soon as possible.
Have a great day.