Defending yourself in court, no matter the circumstances, is incredibly stressful. This is especially the case if you are being sued for a debt. While it is quite rare for a collection agency to pursue a debt that is about $1,000 or less, it does happen. If this describes your current situation, these three strategies for defending low value debt collection lawsuits will help protect your rights in court.
1. Settle
This might seem like giving in, but paying the debt can actually provide a sense of freedom. Fortunately, you also have the option of settling the debt. You can offer to pay the creditor less than the full amount owed.
You can choose to pay one lump sum or ask for payments over the course of the next few months. Any settlement that forces you to pay more than half the debt may not be worth it.
2. Hire a Lawyer and Fight It
Fighting the lawsuit does not have to be as difficult as it sounds. Of course, legal fees can be just as expensive as the debt, but those that cost more than $2,500 may very well be worth it to fight. Of course, you may also elect to pay a lawyer out of principle, rather than giving a creditor anything at all.
3. Declare Bankruptcy
Not only does declaring bankruptcy put an end to the lawsuit, but it also erases the debt. Of course, bankruptcy is a serious issue. If you were not considering bankruptcy before, you don't want to turn to it as your first solution. Not only can the process ruin your credit, but it can also require time and money you may not have.
Contact us to learn more about protecting yourself against debt collectors in court. We can help you weigh your options and determine the best course of action.
