What You Need to Know About Debt Buying Laws in Alabama
What You Need to Know About Debt Buying Laws in Alabama
When someone says you owe money and takes you to court in Alabama, it is important to know what is allowed by the law. Sometimes, people think buying and selling debt is not allowed. But that is not true! In Alabama, companies can buy and sell these debts, but they must follow the rules. In this article, I will help you better understand the bet laws in Alabama.
Is Buying and Selling Debt Legal?
Yes, it is legal to buy and sell debt in Alabama. Companies like LVNV Funding, Midland, and others can do this legally. They buy debts from companies where people borrowed money but have not paid it back yet. After buying the debt, they try to collect the money owed.
What Some People Get Wrong
Some people think if the law is confusing, they do not need to worry about being sued. That is a big mistake! If you ignore a lawsuit, you could lose the case without getting to tell your side of the story. This could even mean some of your money being taken from your paycheck (garnishing your wages).
Making Sure They Own the Debt
When a company says you owe them money, they need to show they own your debt. This means they need papers that prove they bought your debt fairly. A lot of times, companies have trouble showing these papers and, if you go to court, you can ask them to show proof.
What to Do If You Are Sued
If a company takes you to court about a debt, you need to respond. This does not mean you agree you owe the money, but you need to tell your side of the story in court. It is a good idea to talk to a lawyer who knows about debt laws to help you.
Conclusion
It is okay for companies to buy and sell debts in Alabama, but they have to prove they own the debt if they take you to court. Knowing this can help you handle a lawsuit better. Remember, understanding the debt laws in Alabama and talking to a lawyer can help you a lot.
If you liked this article, here is a video that also might help.
If you live in Alabama and you have any questions, feel free to get in touch with us.
We would be glad to help you in any way we can.
You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly.
Thanks for reading, and have a great day!