How to Get a Debt Lawsuit Dismissed

Regardless of the legitimacy of the lawsuit for debt collection, it is feasible to have it dismissed. Here is what you need to be mindful of.

Court expenses and lawyer charges are occasionally incorporated. In addition to that, it is typically the amount owed, as stated in the complaint, which also explains the reason for being sued and the creditor’s desired outcome. You are identified as the defendant, and the creditor initiates legal action by submitting a complaint to a civil court in the respective state. The creditor or a collection agency has the ability to take legal action against you if you are considerably overdue on a debt, usually after a period of 180 days of nonpayment.

If the creditor is successful in the lawsuit, they can employ more forceful measures such as freezing your bank account, confiscating assets, or deducting money from your wages in order to retrieve the debt. In the event that the creditor prevails, the court will issue a judgment against you for the outstanding amount. Your attorneys can then present arguments on behalf of both you and the creditor. If you choose to respond to the lawsuit, there may be a court hearing.

How to Get a Debt Lawsuit Dismissed

If you wish to have a debt lawsuit dropped, adhere to these instructions.

1. Respond to the Lawsuit

If you fail to respond to the lawsuit in a timely manner, it means that the creditor may be able to obtain a default judgment, allowing them to collect the debt through wage garnishment, bank account levies, or other means. Depending on the state you live in and how the papers were served to you, the deadline to respond to the lawsuit is typically between 20 to 30 days. Once you are served with the court summons and complaint letter, you will have a deadline to respond to the lawsuit.

2. Collect Documentation

You must have enough evidence to prove that you are disputing the amount of debt and the details of the creditor, such as why you are disputing it. For example, if you are disputing a lawsuit, you will want to bring a validation letter. Additionally, you will need to gather documents that will be used in court for your case against the debt collector.

3. Hire a Lawyer

It is important to have an experienced debt relief attorney on your side who can provide important legal advice. Most experienced debt relief attorneys offer free consultations, so you can learn about how they work and their potential solutions before committing to hiring them. Hiring an attorney often results in avoiding losing your case in court and getting the best possible outcome. However, you might be tempted to save money on legal fees by not hiring an attorney because you don’t understand the court process. While representing yourself in court, you will have a much better understanding of the debt collection laws and your options for resolving your debt, as well as better dealings with your creditors.

4. Decide on a Plan

Finally, when you work with your attorney to come up with the best plan of action for resolving your debt and defending against the lawsuit, it is important to consider common options such as debt settlement and dismissal of the lawsuit.

File a motion to dismiss.

If you believe that your creditor’s claims are not valid, you should not proceed with filing a lawsuit and instead dismiss it. There are many reasons why a lawsuit can be dismissed. For example, if your creditor cannot prove that the debt is yours or if the case falls outside the statute of limitations. Your lawyer will be able to assist you in filing for dismissal and building your case.

Offer a debt settlement.

If you adhere to the specified terms and the creditor consents to a resolution, the lawsuit will be dropped. If you can propose a satisfactory offer that aligns with your financial constraints, you have the ability to prevent the lawsuit from progressing. Keep in mind, the creditor’s primary objective is to receive the highest possible payment. An alternative approach to dismiss a debt lawsuit is by coming to a settlement agreement outside of the legal proceedings.

If it is clear that you do not have the financial resources to fully pay off your debt, creditors will usually agree to a settlement, allowing you to pay off a fraction of the total amount owed over time through a monthly payment plan or a lump sum payment. An experienced debt relief attorney can help you negotiate a settlement with your creditor. It is always advisable to have an experienced debt settlement attorney review the terms to ensure you are well protected. Again, it is likely that you will sign a settlement agreement.

File a countersuit.

If the circumstances of the set or transaction that gave rise to the creditor’s claims are against you, your counterclaims are essentially your own claims against the creditor. In addition to having counterclaims against the creditor, you can raise any defenses you may have to the creditor’s claims in your answer. Once you have been served, you typically need to file a response to the lawsuit, which is typically called an “answer.” If you have a complaint against your lender or creditor, you may want to file a countersuit.

The FDCPA is breached if a collector intimidates you, misrepresents their identity, or contacts you outside the time frame of 8 a.M. To 9 p.M. If a debt collector violated your rights according to state or federal regulations, it is advisable to gather supporting evidence. For instance, if the creditor infringed upon debt collection statutes, you have the option to submit a counterclaim.

Reasons to Challenge a Debt Lawsuit

There may also be situations where you should attempt to dismiss a lawsuit, but of course, there are common reasons why one would want to lose a lawsuit debt and get a judgment against them.

If two people have very similar names, it might happen that the wrong person is sued for debt in cases of fraud.

You have already settled your debt. Debt collection agencies may sometimes provide inaccurate payment records. If you have already paid, you could still face a lawsuit regarding the debt.

The amount of debt is wrong. Even if you legitimately owe the debt, the creditor may be suing for the incorrect amount.

The New York statute of limitations has recently been modified. Generally, statutes of limitation range from 3 to 6 years, however, they differ depending on state legislation. Once this period elapses, you cannot be sued for a debt anymore as it becomes time-barred. There is a specific timeframe, referred to as the statute of limitations, during which the debt can be legally collected. In this case, the statute of limitations has expired.

Our Experienced Debt Relief Attorneys Can Help

Today, let’s discuss how we can help you put together a strategy to resolve your debt and avoid a lawsuit or being sued by a creditor, if you are in debt for more than 20 years. New York-based Tayne Law Group is a debt relief law firm.

Visit www.Taynelaw.Com today to check out the work done by our in-house team at Tayne Law Group. All discussions and information shared are kept confidential, and we will never share or sell your information. If you prefer, you can also fill out a short contact form on our website to reach someone from our office. Additionally, feel free to give us a call at 7337-890-866 for a free phone consultation with our helpful and experienced staff.