Getting that legal notice in the mail saying a creditor is suing you can make your stomach drop. Your mind races, your heart pounds, and suddenly, you’re facing a wave of stress unlike anything else. It’s a challenging time, but you need to focus on the task ahead rather than letting panic take over. Having clear knowledge about what steps to take next gives you comfort and prepares you for the road ahead. Your Legal Rights When Sued by a Creditor You have significant legal rights when a debt collector sues you, even if you owe the unpaid debt. The Fair Debt Collection Practices Act protects you from harassment, false statements, and unfair practices. Debt collectors must prove they own the debt and the amount they claim is correct. You can request validation of the debt, which forces the creditor or debt collector to show evidence that you owe the money. Your bank account and wages have protection limits under federal law. You also have the right to represent yourself in court or hire an attorney. Many people don’t know they can negotiate a settlement even after being sued. Remember that each state has different debt collection laws, so local […]
