If you are being sued by a creditor or debt collector and don’t want to file bankruptcy, you still have options. Gary M. Didieo has represented hundreds of Passaic and Bergen County residents in the defense of debt collection lawsuits in New Jersey.
A debt collection lawsuit begins with the filing of a summons and complaint by the creditor or debt collector in the Superior Court of New Jersey in the county where you live. Most debt collection lawsuits in New Jersey are for debts less than $15,000.00. These cases are filed in the Special Civil Part of the Superior Court. After the case is filed, the court will send you (the defendant) two copies of the summons and complaint; one by certified mail, return receipt requested and one by first class mail. You then have 35 days from your receipt of the summons and complaint to file a response known as an “answer” with the court.
At this point, it is crucial that you contact a New Jersey debt collection defense attorney immediately. If you fail to file or have your attorney file an answer with the time allowed, your case will go into “default”, meaning you have lost your opportunity to challenge the lawsuit. Shortly thereafter, the creditor or debt collector will file papers with the court for a “default judgment”. If the judgment is granted, the creditor or debt collector will have the power to have the sheriff take money from your bank account, take a portion of your wages from your employer or even put a lien on your house. Don’t make the mistake of waiting too long to contact an attorney!
How can a New Jersey Debt Collection Defense attorney help you?
First, by showing the court that the company sueing you does not own or cannot prove that they own your debt. When you owe money to a creditor, your creditor will often sell your debt to a debt collector for a fraction of what you owe. Often, these debts are passed around from one debt collector to another until one of them files a lawsuit against you. The most common third-party debt collectors that I see filing lawsuits in New Jersey include CACH, LLC, Midland Funding, Asset Acceptance, New Century Financial, LVNV Funding, Cavalry SPV, Portolio Recovery and Retail Recovery Services. In order to win a judgment against you, the debt collector must provide proof by way of documents and testimony that it legally owns the debt. With knowledge of the New Jersey Rules of Evidence, your attorney will pick apart the evidence and argue to the Court that ownership cannot be proven and that your case should be dismissed. If the court agrees, case dismissed. You walk away and pay NOTHING to the debt collector.
Even if your attorney cannot get your case outright dismissed, you still have options. The main reason why you should hire a New Jersey debt collection defense lawyer is this – TO SAVE YOU MONEY. Most cases can be settled for less than you owe. When it comes to settlement you have two options. A lump sum settlement or a monthly payment plan. With a lump sum settlement, you pay one payment in full settlement of the lawsuit. With a payment plan, you typically make fixed monthly payments, with no interest, in equal amounts on a negotiated balance which is usually less than you actually owe. In general, the more you can pay up front, the better overall settlement you will get. Some cases can settle for as little as 30% or less of what you actually owe. With a settlement, you avoid having a judgment entered against you and the hassle of a creditor chasing you for your assets for the rest of your life.
Your creditor or debt collector is going to have an attorney in court. If you plan on going up against them on your own, good luck. These attorneys handle thousands of debt collection lawsuits per year. They know the judges and they know what they are doing. Hiring a New Jersey debt collection defense attorney will put you on level ground with your creditor or debt collector. Call Gary M. Didieo, a New Jersey debt collection defense lawyer at 201-213-0883 to schedule a free consultation to discuss your debt collection lawsuit.