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How can I defend against a lawsuit from a debt collector?

How can I defend against a lawsuit from a 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 or form an attorney-client relationship. The following information is not a substitute for advice from a local attorney, but we hope it helps.

If you owe the debt, defending against it is challenging, and declaring bankruptcy is a drastic option. In such a case, consult a local bankruptcy lawyer.

If you believe you do not owe the money or not the full amount, you can contest the claim in court. It’s advisable to have a lawyer represent you in this process.

You might also consider negotiating a payment plan with the creditor. Contact them to propose a monthly payment amount you can afford and see if they will agree to settle the debt based on that arrangement.

To best protect your rights, retaining a local attorney is recommended.

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.

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