Full question:
5 years ago I did one of those quick loans, the amount was 350.00. yesterday I received the keys to my new home that I worked for years to clean my credit up . 2 hours after, a summons was delivered; saying I owed 13,500.00 - cost and fees, because I didn't pay. I did pay but have long since thrown away any papers. What can I do?
- Category: Debts and Credit
- Date:
- State: Illinois
Answer:
If you receive a summons for a debt, you need to respond within the specified time to avoid a default judgment against you. The discovery process allows you to gather information, such as business records and answers to written questions, from the opposing party. If the plaintiff wins a judgment, they can place a lien on your assets, garnish wages, or freeze bank accounts.
When appearing in court, dress appropriately and bring any documentation related to the debt, like receipts or billing statements. Common defenses against debt collection include the statute of limitations, improper plaintiff or defendant, and violations of the Fair Debt Collection Practices Act.
You can negotiate a settlement with the creditor, though this is harder once a lawsuit is filed. Creditors may accept a lesser amount if you are unable to pay the full debt. If you reach an agreement, ensure you get a release so the creditor cannot pursue the remaining balance.
According to the Fair Debt Collection Practices Act (15 USC 1692g), debt collectors must provide written notice of the debt, including the amount and the creditor's name, within five days of initial communication. If you dispute the debt within thirty days, the collector must cease collection until they verify the debt.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.