Creditor
Debt Defense
Debt defense summary:
You may have several legal defenses against a debt collection lawsuit.
Lawsuits over very old debt, debt that isn't yours, or debts that can't be substantiated could be thrown out.
Consider hiring a debt defense attorney if you're sued over debt.
Debt Defense Definition and Meaning
A debt defense is the legal strategy you use to protect your rights when you're sued by a creditor or debt collector. Everyone has the legal right to defend themselves against lawsuits, including collection lawsuits.
Common Types of Debt Defense
The type of debt defense you use depends on your specific financial and legal circumstances. Here are a few commonly used defenses against debt collection lawsuits:
The statute of limitations has passed. States limit how long creditors or collectors have to take legal action for most types of debt. If the debt is past the statute of limitations, the creditor or debt collector might not have the right to sue. That doesn’t mean they won’t try. They could also try to restart the clock and get more time.
The debt collector lacks legal standing. This means the debt collector doesn't have the right to sue you over the debt, possibly because it can't prove it owns your debt or because it sued you in the wrong state. For example, if the debt has been sold and the debt collector lacks documentation of the original debt, they might not be able to prove they have the right to sue you for it.
You were a victim of identity theft and card fraud. You are typically not legally responsible for debt you didn't incur.
Your debt was already discharged in bankruptcy. You aren't required to pay debts discharged during a bankruptcy proceeding.
Some types of debt defense require the debt collector to provide the documentation to back up its claim. Other types of debt defense may require you to prove your defense. An attorney specializing in collection lawsuits can often help you find the best debt defense for your specific circumstances.
Should You Hire a Debt Defense Lawyer?
You can provide a debt defense and respond to a lawsuit on your own. However, an attorney who specializes in debt defense can be a powerful ally in dealing with collection lawsuits.
Although an attorney costs money, an experienced debt defense lawyer could save you money in the end by helping you deal with the lawsuit and get a better outcome. Plus, you save the time and hassle of dealing with the debt collector.
Whether you respond yourself or hire a professional, never ignore a lawsuit. You have the best chance of a positive outcome if you take charge of your situation.
Debt Defense FAQs
What is the statute of limitations on credit card debt?
The statute of limitations on debt collection could be between two and 20 years. It depends on the type of debt and where you live. Talk to an attorney licensed to practice where you live if you want to know about the statute of limitations for a specific debt that you have.
Once the statute of limitations passes, creditors no longer have the legal right to collect a debt. Your obligation to pay it never goes away. Debts can show up on your credit report for seven years past the date of delinquency, and in a few cases, longer than that.
A creditor can continue asking you to pay a debt, as long as:
The debt is yours
The amount is correct
The debt collector is entitled to collect
If you're sued for a debt, the age of the debt could be a defense. After the statute of limitations expires, debt collectors may lose a lawsuit against you because their legal time to collect has run out.
If you’re sued after the statute of limitations runs out, you still have to respond to the lawsuit. Don’t ignore it. But you could ask the judge to throw out the case.
What do I do if my creditor takes legal action?
Creditors may attempt to collect on enrolled debts by taking legal action. While we (FDR) are not lawyers or licensed to practice law, we want to make sure that if any enrolled accounts go into litigation, the debt can still be negotiated.
We’ve partnered with a network of attorneys, the Legal Partner Network, that specializes in debt negotiation. If any enrolled creditor files a lawsuit against a client, we may engage a Legal Partner Network attorney who will attempt to negotiate a settlement with the creditor.
The focus of the attorney is to try to get the creditor to settle the lawsuit and resolve the debt. The attorney will not represent the client in court or file paperwork.
The cost of the Legal Partner Network service is included in the program (without any subscription or service fees) and will be available to the client as long as they make all of their deposits on time and in the full amount.
What are your chances of getting a credit card lawsuit dismissed?
Your odds of getting a credit card lawsuit dismissed depend on a few factors. Your chances of dismissal could increase if you’re able to prove one of the following:
You were a victim of identity theft
A statute has expired
A debt was invalid.
Each situation is different. It's best to consult a lawyer to find out about your options.
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