People often know that they are behind on their bills, but they do not expect to have a lawsuit filed against them. Unfortunately, it happens all too often in Aventura, and throughout Florida. If you have received notice that a creditor or debt collector has filed a lawsuit against you, you may be tempted to simply ignore it. This is a mistake. If you do not defend against the lawsuit, you may have your wages garnished, or your property may even be seized to cover the debt.
There are many defenses to debt lawsuits that can protect your wages, your assets, and more. It is always advisable to work with a Fort Lauderdale debt defense lawyer who can advise on the facts of your case, and prepare the most effective defense possible.
Responding to a Lawsuit is of Utmost Importance
If a creditor or debt collector has filed a lawsuit against you, you must respond to it. The party that took legal action is hoping that you ignore the lawsuit, which is something so many borrowers in Florida do. If you ignore the lawsuit, the creditor or debt collector will likely ask the judge for a default judgment. If a default judgment is granted, it means the creditor or debt collector will automatically win their lawsuit, and you will not have a chance to defend yourself.
When responding to a debt lawsuit, it is also important to remember that you have only 20 days to do so. If you do not respond within this time, the party that took legal action will request a default judgment and you will likely lose the lawsuit. When you respond to the lawsuit, you can outline the defenses you intend to use during the case.
The Statute of Limitations in Florida Debt Lawsuits
One of the most common defenses used in debt lawsuits is the statute of limitations. Like other legal cases, debt collectors and creditors only have a limited amount of time to take legal action against you. This time limit is known as the statute of limitations and if it expires, the creditor or debt collector loses their right to take legal action.
The statute of limitations on debt lawsuits in Florida is five years, but determining when the statute starts is not always easy. For example, you may use a credit card and neglect to repay the debt. If you do not make any payments towards the debt, the statute of limitations would begin when you take out the credit card. However, if you do make payments, the statute of limitations may begin on the date of your last payment. It is for this reason that it is so important to not make any payments on the debt once you have been notified of the lawsuit. Doing so could eliminate one of the possible defenses in your case.
It is also important to note that even though a creditor or debt collector cannot take legal action against you once the statute of limitations has expired, it does not erase the debt. It will still appear on your credit report and can still lower your credit score.
Violations of the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act is a law that governs what debt collectors can do, and what they cannot do, when trying to collect on a debt. Although there are many different violations debt collectors may commit, there are some that are more common than others. These are as follows:
- Harassing behavior: Over 40 percent of all FDCPA violations involve harassing behavior on the part of the debt collector. Harassing behavior can include using profane or abusive language, calling at inappropriate hours, threatening to take legal action when the debt collector has no intention of doing so, and more.
- Pursuing a debt that is not legal: You may assume that if a debt collector is chasing you to try and collect on a debt, you owe the amount they say. However, almost 40 percent of reported FDCPA violations involve debt collectors trying to collect an amount the borrower does not legally owe. Usually these inflated amounts are due to excessive and illegal interest, fees, and other expenses.
- Failure to notify the borrower: Debt collectors must notify borrowers of the debt owed before taking legal action against them. That notice must also include certain information. Over 16 percent or all FDCPA violations were related to debt collection companies who failed to send proper written notice of the debt. Proper written notice should include the name of the debt collector, the amount of the debt owed, and notification to the borrower that they have the right to dispute the debt.
Legal Standing
Any time one party files a lawsuit against another, they must have legal standing to do so. Essentially, this means they must have the legal right to file the lawsuit. Again, borrowers often assume that debt collectors and creditors have the right to sue them, but that is not always the case.
By the time a lawsuit is filed, the debt has often changed hands many times. As the debt is sold from one party to another and then to another, important paperwork gets lost. Creditors and debt collectors must have this paperwork to prove they have legal standing to file the lawsuit and when they do not, it can be used as a defense in a debt lawsuit.
Call Our Debt Lawyers in Aventura, FL for Help with Your Case
If you have received notice that a creditor or debt collector is filing a lawsuit against you, you need sound legal advice. At Loan Lawyers, our Aventura, FL debt lawyers can review the facts of your case and determine the right strategy for moving forward that will give you the best chance of a positive outcome. Call us now at (954) 523-4357 or reach out to us online to schedule a free review of your case and to learn more about how we can help.
