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How can I defend against getting sued by a third party debt collector?

How can I defend against getting sued by a third party debt collector?

Full question:

I am being sued by third party debt collecotor about 3 year old credit card debt, how can I defend this? First notice of suit was order of hearing may 16

Category: Debts and Credit
Date: 04/07/2025
State: Minnesota

Answer:

We cannot give legal advice, and are not forming an attorney-client relationship with you. The following is not a substitute for the advice of a local attorney. But we hope the information will be useful.

If you owe the money, it is difficult to defend, other than by declaring bankruptcy - but that is a drastic step. In that case you would want to consult a local bankruptcy lawyer.

If you claim you do not owe the money, or do not owe all of it, you can go to court and make the creditor prove that you owe it. It would be most preferable to be represented by a lawyer in this effort.

You could probably work out a payment plan with the creditor if you are able to contact them. You may be surprised what sort of deal you can work out. You may want to tell them, you cannot pay all, but you can pay X, at x per month. And see if they will agree to a complete settlement of the outstanding debt based on that arrangement.

In any case, to protect your rights most fully, you should retain the services of a local attorney.

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.

FAQs

What is the 777 rule with debt collectors?

The '777 rule' refers to a guideline used by some debt collectors indicating that they should not pursue debts that are more than seven years old. This is based on the Fair Credit Reporting Act, which limits how long negative information can stay on your credit report. However, this rule does not prevent collectors from attempting to collect on old debts, and they can still file lawsuits if the statute of limitations has not expired. Always check your state's specific laws regarding debt collection and time limits.

Can a debt collector take you to court after 3 years?

Yes, a debt collector can take you to court after three years, depending on the statute of limitations for the type of debt and the state where you reside. In many states, the statute of limitations for credit card debt is between three to six years. If the statute has not expired, the collector can file a lawsuit to recover the debt. It's important to check your state's laws to understand your rights and options.

Can a collection agency report an old debt as new?

No, a collection agency cannot report an old debt as new. Under the Fair Credit Reporting Act, debts must be accurately reported. If a debt is old, it should reflect its original date of delinquency. However, collectors may attempt to collect on the debt, but they cannot misrepresent the age of the debt in their reporting. If you believe a debt is being reported inaccurately, you can dispute it with the credit reporting agency.

Can a credit card company sue you after 3 years?

Yes, a credit card company can sue you after three years if the statute of limitations for that debt has not expired. In many states, the statute of limitations for credit card debt is typically three to six years. If you are being sued, it's crucial to respond promptly and consider consulting with a local attorney to understand your options and rights.

How long before a debt collector can sue?

The time before a debt collector can sue you depends on the statute of limitations for the specific type of debt and the state you live in. Generally, this period ranges from three to six years for most consumer debts, including credit card debt. Once this period expires, the collector cannot legally sue you for the debt. It's important to be aware of your state's laws regarding debt collection and the statute of limitations.