Paying bills every month can be a routine for residents of Kentucky, but sometimes debt can become overwhelming. When someone is behind in their payments and receives a notification that a lawsuit is being filed against them by a debt collector, an unfortunately common reaction is to fail to show up in court. When someone who is being sued for debt avoids the courtroom, the result is usually a judgement against them.
According to statistics, more than half of the people in America who are sued over debt fail to appear. When this happens, the judgment of the court is usually in favor of the debt collector, which means that the defendant will be liable The judgment will also hurt their credit rating.
Debt collectors win in this situation, even though very often, they are not actually prepared to make their case. The paperwork needed to prove that the person owes the debt is often not transferred when a creditor sells the account to a debt buyer, and in that case, the debt collector can’t prove the debt is owed. If the debtor does appear in court and demands proof that they really owe the debt, the debt collector may not be able to prove it. In that case, the case is usually dismissed.
When someone is sued for debt, an attorney could assist them in reviewing their options. Challenging debt in court is one strategy, though it may involve taking time off from work. Sometimes the debt collector will have the necessary proof, so this method is not guaranteed to dismiss the debt. When someone is overwhelmed by debt, bankruptcy is another option. An attorney can explain the eligibility and other requirements and the effect that bankruptcy would have on unsecured debt.
Source: FOX Business, “These 2 Words Could Get You Out of Paying a Debt”, September 08, 2014