Student Loans and Bankruptcy

3 Ways That A Debt Defense Attorney Can Help You With Unpaid Bills And Collection Attempts

8 January 2016

Roy Sanders

If you are experiencing issues with debt and bill collectors seem to always be on the other side of the phone, it is time to speak with a debt defense attorney. It is also important to consult with that type of attorney if legal action is being threatened. A debt defense attorney has numerous ways to keep you from losing money and ignoring your debt or not responding to notifications about the issues can result in legal judgments against you. Therefore, it will be helpful to learn three of the most common steps that your attorney can take to protect your legal rights when there is concern about unpaid debts.

#1-A Debt Defense Attorney Can Make Sure You Respond To Any Legal Summons Appropriately

It is tempting to ignore the letters from bill collectors and other correspondence about your debts, but doing so could be disastrous. For instance, you probably already know that unpaid bills will frequently be reported to one or more of the major credit reporting agencies. When that happens, you could find that a lower credit score makes it harder to rent or buy a home, get a new car or even obtain your dream job for seven years after the debt was reported to the credit agency.

Therefore, when you speak with a debt collection lawyer, you should provide all of the letters and contact information for any unpaid debts.

#2-Your Lawyer Can Force The Bill Collectors To Establish Their Legal Right To The Debt

It is frequently surprising to discover that the practice of buying and selling debts, although very common, can make it more challenging to actually access the funds. Specifically, the collection agency was not the entity with whom you entered into an agreement with. As a result, they must prove to the court that they have all of the appropriate paperwork, like a transfer of a credit card agreement or similar examples of transferred debt.

It will also be helpful to note that the legal right to sue is known as "standing". Third parties do not always have the standing to require payment from you. In some cases, your lawyer can successfully petition the court to dismiss the debt entirely.

#3-Your Attorney Can Make Sure That Your Debt Is Within The Time Period For Collection

In the majority of states, unpaid debts must be pursued within six years of the time it was incurred. After that, the debt will often "expire" and it can no longer be pursued. Unfortunately, that fact is not always very well-known and many bill collectors count on their clients being unaware of that fact.

Fortunately, your lawyer can frequently bring that up in court or with discussions with the debt collection agency that you allegedly owe and force them to stop their collection practices. That means that you should never admit that the debt is valid or make any payments on old debts without the approval of your lawyer. Doing so could re-start the clock and once again make the debt your responsibility.

In conclusion, a debt defense attorney can often minimize or eliminate the money that you owe. In addition, he or she may also be able to establish that you do not owe the amount of money in question, so there is no reason to worry about your financial situation. For more information, contact a law firm like Brackett & Strunk LLC.

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