How To Stop Debt Collection Lawsuit in Dayton, OH

A person living in Dayton, Ohio, can be hit with a debt collection lawsuit at any time. Therefore, one must have a clear understanding of the ways to stop such a lawsuit. While it is common for many debtors to be fearful when they owe others money, there is no good reason for being fearful. Nonetheless, we must stress that the consequences are grievous when a debtor loses the lawsuit and creditors are granted a judgment. 

Luckily, a Dayton resident has several options to halt a lawsuit. Fesenmyer Cousino Weinzimme offers compassionate and qualified debt-relief lawyers who help debtors with pending civil suits or threats. 

What To Do When You Receive A Summons

A summons is a notice of a lawsuit that a debtor receives. It is important for a debtor who receives such notices to act quickly because of the limited 28 days given for filing an answer. The debtor must send the answer to the court for filing in the record and to the creditor’s attorney. An incorrect response or failure to respond will trigger the creditor’s desire to seek a Summary Judgment against the debtor. Such a default judgment grants the creditor permission to garnish the debtor’s wages and seize or place liens against the debtor’s personal property. 

Ways/Options of Halting Debt Collection Lawsuit

The ability of a debtor to halt a lawsuit depends on their individual circumstances and facts. An experienced attorney can guarantee that the creditor has irrefutable evidence, attempt to expunge unsubstantiated evidence and help stop a debt collection lawsuit. 

Accordingly, it is sensible for the debtor to secure the services of a lawyer for the examination of feasible defenses and to ensure the correct choice of available alternatives. 

It is vital for the debtor to know his available options when his creditor sues him for a debt. The best thing the debtor can do immediately when the creditors sue him is to respond. The response is important because it deters a default judgment against the debtor since it signifies the debtor’s acknowledgment of the suit. 

Nonetheless, the debtor must be cautious enough when responding to the lawsuit. Such caution is important to avoid giving up other legal defenses inadvertently. Instead, the debtor needs to turn over communication with his debt collector to his debt collection attorney. 

The following are the options: 

Debt Payment

The debtor who is conscious of their debt has the option of stopping a lawsuit if he can pay the debt. 

Time Extension Request

The debtor can negotiate with the creditor to extend the time to pay or agree on a payment schedule. This option is specifically relevant to the creditor who believes that the debtor has the alternative of filing for bankruptcy, which will make him lose his money. 

Fight in Court

Creditors usually sell their debtors’ debt to other firms, which makes it hard for the debtor to acknowledge the origin of the debt. Sometimes mistakes happen, and creditors end up suing the wrong individuals or lacking the correct documents about the debt. An experienced attorney can win the case and save the debtor in case the creditor lacks the supporting documents, along with a copy of the contract and record of payment. 

Filing for Bankruptcy

A debtor can file for bankruptcy to eliminate a creditor lien or judgment. The debtor can file for individual bankruptcy in Dayton via chapter seven or thirteen. The United States Bankruptcy Code has a rule that automatically stops collection efforts or lawsuits that are already going on. This provision compels the legal process to stop until the end of bankruptcy or until the creditor receives the go-ahead from the bankruptcy court to carry on with the suit. 

The creditor will also stop trying to get the debt paid back or call the debtor to bother them. The creditor is also not permitted to garnish the debtor’s bank account or wages, repossess the debtor’s vehicle, or put liens on any debtor’s property. During the bankruptcy proceedings, the court also stays all pending lawsuits. 

The debtor must be aware that the stay is only temporary until the bankruptcy is over. Bankruptcy can discharge certain debts completely, like credit card bills, payday loans, utility bills, and personal loans. However, debtors will still repay some debts, like personal injury or death triggered by accidents when intoxicated or student loans. 

Other debts that the debtor will still repay include penalties and fines for law violations, the latest income tax debts (under three years), and a great share of other tax debts. A debtor will still pay for debts excluded from bankruptcy papers and debts he owes under a divorce settlement or decree. 

Chapter 7 provides that the court will only discharge debts that arose prior to the date of the order for relief. However, debtors should take note of the grey areas in which debt discharge ability depends on circumstances. For example, the court can discharge certain criminal charges, restitutions, and fines; civil judgments not resulting from wilful actions; as well as property aliens where the debtor chooses not to keep the property. Therefore, a debtor needs a good lawyer to help him sort out his dischargeable and nondischargeable debts and discern the relevance of bankruptcy to a debtor. 

The Don’ts When Sued

The debtor must take note that, notwithstanding what he thinks about the debt’s validity, he should avoid the following five things when the creditor serves him with a debt lawsuit: 

The first thing to do is ignore the lawsuit. This is because the debt collector always hopes for a default judgment against the creditor to allow them to pursue the debtor for each cent of the amount listed. Therefore, the debtor will be safe from the default judgment, which would allow the debt collector the opportunity to collect the debt.  

The debtor should also not admit he owes the debt. This is because if he resold the debt, the corresponding amount might be incorrect. Thus, whenever the debt collector asks the debtor if he owes the money and admits it, the court might subsequently order the debtor to pay the balance. Nonetheless, the debtor can still fight the debt collection lawsuit in court if he does not admit to owing the debt. 

The debtor should also avoid sending a person who is not a lawyer to court to act for him. This is an important observation because the unauthorized practice of law attracts legal penalties. The debtor should also never equate an internet search with qualified legal advice. This will make the debtor avoid using outdated or incorrect advice online, which might hamper his case. 

The debtor needs not be afraid of hiring an attorney. An experienced lawyer in debt collection safeguard has knowledge of stopping a debt collection lawsuit. Such a qualified lawyer will offer various options regarding the case and assist the debtor in safeguarding his finances and credit. 

Conclusion

The receipt of a lawsuit for debt collection is an intimidating moment for debtors. Fortunately, Dayton residents are lucky because of the experienced and seasoned debt relief attorneys at Fesenmyer Cousino Weinzimmer. 

The debtor must appreciate the importance of time when dealing with debt collection lawsuits to avoid unnecessary delays that only worsen their situations. It is imperative for debtors to immediately reach out to Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer upon receipt of the notice. 

This will significantly help the debtors respond within a minimum of 28 days and prevent the court from issuing the default judgment. A quick response is also important because it shows acknowledgment of the lawsuit.  

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