Collection Lawsuit Defense
If you fall behind on your credit cards, medical bills or other debts, you probably will be sued at some point. If that happens, you should act immediately. Do not assume that just because you have been sued, that you owe the money or the company that sued you can prove its case.
You may have valid defenses. A review of the petition and any attached documents will help identify potential defenses and the best way to assert them. In addition, banks and companies that buy old debt may lack the documents they need to prove their claims. The burden of proof is on them to prove their case -- not on you to prove otherwise. A few basics and pitfalls to avoid are:
Limited time to respond
Once you are served with the petition, the law requires you to file a formal written response with the court within a short period of time. Depending on the court, this usually is 10 to 15 days. If you fail to do so, the creditor may obtain a “default judgment” against you. A default judgment will then allow them to garnish your wages, freeze your bank account, or take other action to execute on the judgment. In Louisiana, a money judgment will also act as a lien on your home.
Pitfall # 1: The Request for Admission of Facts
Collection attorneys usually try to trap you by attaching a “Request for Admission of Facts" to the petition. In Louisiana, you must file a formal written response within 15 to 30 days from the date you receive it, or the law will consider you to have admitted the allegations - even if they are not true! This is a very dangerous ploy, since if you admit the "facts" by not responding, the collection lawyer may try to rely on those admissions to request a judgment against you without independently proving their case. Do not fall in this trap.
Pitfall # 2: Consent Judgments
Some collection law firms will call or write after they've sued you, and ask you to sign a "consent judgment." This is a bad idea. A consent judgment is the equivalent of a blanket admission, and waives of all of your potential defenses. You may have defenses that you are not aware of. Or, they may not have the evidence to prove their case. A consent judgment will also operate as a lien on your home.
They may offer you a low payment plan, if you just sign a consent judgment. While that may sound attractive initially, it will do you no good if you miss even one payment or are late. The collection firm will then be free to immediately garnish your wages, freeze your bank account, or take other collection action without further notice. You should never waive your legal rights on the advise of an attorney or law firm that has sued you. They do not have your best interests at heart.
If you are sued, the best thing to do is to immediately contact a lawyer and explore your potential defenses and options. Don’t let the deadlines pass or sign a consent judgment until you have spoken to an attorney who is looking out for your interests.
Call for a consultation at 985-892-7222.