How to Stop a Lawsuit from a Creditors?

We are living in a country where most people are aware of their legal rights. So there comes a time when you think about stopping a lawsuit altogether. Now anyone can sue anybody whether the cause of suing is valid or not. This makes you wonder, how to stop a lawsuit from a creditors? Suing is easy and since you have borrowed something, you must pay your debts as per the agreements. Although some attorneys may tell you that all cases can be thrown out of the window, but the following are the debts that do not qualify for discharge:

The debt that was resulted in the injury or death of someone.

Debt that is owed to the government.

Debt that is related to loans.

You need to respond to the lawsuit

When you get sued by someone, you will receive the complaint letter. You might look into it and think that you do not owe the plaintiff’s debt  and ignore it and you must be thinking about how to stop a lawsuit from a creditor? Your mistake will give creditors more ways to charge double or triple amount from you as they can file a default judgment against you. They can go for wage garnishment, or they can also take money from your bank account for a bank levy. A specific period will be given in which you must have to respond, and for some reason, you fail to respond, then you have to face the same consequences.

See if the plaintiff has the right to sue you

If you do not have the money to pay for the debtor and think that you do not owe the plaintiff’s debt, then instead of ignoring the complaint, you must respond to it, and you must challenge the plaintiff. This means that the plaintiff must provide valid proof against you. It might be an agreement signed by you or other documentation that proves that you owe debt to the plaintiff. The plaintiff also has to prove that the documentation is valid or original. To make all this happen, you have to respond as the judges cannot take action by themselves. If the plaintiff cannot provide the required documents in the court, the case will be dismissed at its initial stage.

Insist on giving the proof as it will be difficult for the plaintiff to find every bit of the record.  But, to explore more about how to stop a lawsuit from a creditor, you might need to know 

Hire a good Attorney for yourself

If you hire a good attorney for yourself, it will become easier for you to know how many possibilities you have to avoid this lawsuit. Your attorney will help you defend against the debt collection lawsuit as your attorney will defend you by knowing that the creditor filed a false lawsuit against you. In most of the cases, the attorney will not charge a fee from you as if s/he wins the case, then the plaintiff has to pay the entire fee.

You might go for the statute of limitations

It is the law in which the plaintiff has a limited time to sue you. This means that if that period has passed, then the plaintiff has no legal rights to sue you, and no proceedings can be initiated. But the statute of limitations has different rules regarding who has filed the lawsuit as if the credit card company files a lawsuit, and then the rules will be different. The period is also different and can range from five years, six years, to seven years or more. But keep in mind that some cases are distinguished from the cases that have a statute of limitations, so do not forget to check it.

You can also consider bankruptcy

If you want your case to stop immediately, then you can file for bankruptcy. It will make judges halt the case at the moment. Then the court will handle the bankruptcy. If you file for bankruptcy, then there might be a possibility that you do not have to pay the debt at all, and the creditors will stop threatening you as they would like to get paid a little than nothing. Make sure you do not make any false statements because then the bankruptcy will not work for you. The court will check your transaction of last month to check that whether your actions go with your statement or not.

You can also opt for negotiations

If you do not want to go to court trials, you can ask for a settlement through negotiations. If the plaintiff is not sure about its claim, then s/he will prefer to take 50 percent of the debt instead of nothing. In this way, you do not have to go to the tiring trials. But make sure that you make a contract while giving the debt as the creditors might take the debt and then again file a lawsuit against you in court.

Recent Posts