What to Do When An Attorney Contacts You About a Debt

In this edition of the Money Chat series, we tackle a scenario that can be a source of stress and confusion for many: being served with a lawsuit or contacted by an attorney about a debt. These situations, while intimidating at first glance, can be navigated calmly and effectively with the right knowledge and guidance. We hope to provide you with a roadmap that can help make this journey easier, instilling confidence when you need it most.

Don’t Ignore Legal Notices 

The instinct to avoid unpleasant situations is human nature. When faced with a collection lawsuit or an attorney’s letter, you might feel inclined to turn a blind eye. But burying your head in the sand won’t make the issue go away. In fact, it can lead to a default judgment against you. 

It’s crucial to read and understand all the information in these legal communications. Yes, the situation might feel overwhelming, but gathering your courage to confront it is the first step toward resolution.

Seek Professional Legal Advice

Legal matters can be a maze of complex terms and complicated processes. Attempting to handle these issues without guidance might seem like a way to save money, but it can potentially lead to bigger problems down the road. Misunderstanding a legal requirement or missing a deadline can have consequences. Engaging a legal professional can help you navigate these challenges. 

Many local legal aid groups offer free or low-cost consultations.Don’t hesitate to reach out for professional help; it’s important to remember that attorneys are there to advocate for your rights and interests.

Quickly Respond to Lawsuits

If you’re served with a lawsuit, one of the most important things to remember is to respond within the specified timeline. The paperwork that accompanies the lawsuit will provide instructions on how and when to respond. 

Missing this deadline could result in a default judgment against you, which essentially means the court could rule in favor of the other party without hearing your side of the story. Being prompt and attentive to deadlines is not only respectful to the legal process but also crucial to safeguarding your rights.

Understand Your Consumer Rights

Remember, as a consumer, you’re not without protection. There are laws and regulations designed to protect consumers from unfair practices, and it’s essential to familiarize yourself with these protections. You can get started learning more about consumer rights and responsibilities by browsing the Resources section of Receivables Info. 

Proactively Manage Your Finances

If you’re dealing with a collection lawsuit, you may need to reevaluate your financial strategies. A financial advisor can help you assess your current situation, identify areas of improvement, and plan a more secure financial future. It might feel like an extra step during an already stressful time, but taking charge of your finances can help prevent future legal issues and give you a sense of control.

Use Free Resources

Several resources can help you navigate these situations:

• The American Institute of CPAs provides a free website, 360 Degrees of Financial Literacy, to assist with managing your money and making a plan. 
• The Consumer Financial Protection Bureau offers guides and resources related to debt collection, lawsuits, and more.
• The National Consumer Law Center provides information on consumer rights and protections.
• Local Legal Aid Societies offer free or low-cost legal advice to those who qualify. Check out the American Bar Association for a list of resources. 

While dealing with legal issues can feel overwhelming, remember that you’re not alone. By arming yourself with knowledge, seeking professional advice, and utilizing available resources, you can confidently navigate these situations.

Related Articles

For related articles from the Money Chat series, check out the following: 

• The Three Options Creditors Have If You Don’t Pay Your Debt
• What Happens When You Don’t Pay Your Overdue Accounts

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We want to hear from you! If you have a suggestion for a future Money Chat topic, please email us at [email protected].

The information contained in this article is meant to serve as general guidance for consumers and not meant to serve as comprehensive financial advice. For questions about your individual circumstance, finances, or accounts, please contact your creditor(s) and/or financial advisor directly.

Thank you to our sponsor, Markoff Law LLC

Markoff Law LLC is a forward-thinking firm with a history of experience and success representing creditors throughout the Midwest. Through the decades, Markoff Law has earned and maintained a reputation for excellence, honesty, and integrity. Our thought leadership and adherence to industry best practices have established us as a leader within the accounts receivable management industry. We firmly commit to setting and achieving the highest standards of excellence.