Did you know that if you don’t answer debt collectors, they can get a court order forcing you to pay the debt?
If you’re trying to avoid a debt collector, you’ll have a hard time. With today’s technology, it’s nearly impossible to completely ignore them. They may call your phone nonstop, or reach out to you on social media platforms like Facebook and Twitter. If you’re ignoring or blocking a debt collector online, they might eventually file a collections lawsuit against you in court.
If you are being sued by a debt collector, it is important to be proactive and respond to the lawsuit. Ignoring the lawsuit may result in a default judgment that allows the debt collector to garnish your wages. You may be able to have the debt lawsuit dismissed if the collection efforts are misplaced or lack a solid legal foundation.
There are a number of reasons why you should never ignore a debt collector. If you do, there could be a number of serious consequences. Here are five of the most important ones:
1. Your Credit Will Take a Hit
There is a strong possibility that your credit score will drop if a debt goes into collections. Most likely, the delinquent debt will appear on your credit report. Even if you come to an agreement with the creditor about payments, the delinquent account could still have a negative effect on your credit, even if it’s only temporary.
2. The Amount of Debt Could Continue to Get Larger
If you are struggling to repay a debt, it is important to communicate with your debt collector. Ignoring the problem will not make it go away, and in fact, the debt may continue to grow due to accruing interest, late fees, and penalties. Some collection agencies also add on expenses incurred while trying to collect the debt. Rather than ignoring the problem, face it head-on by talking with your debt collector.
3. Family and Friends Might Be Contacted
If you’re being chased by a debt collector, don’t think ignoring them will make the problem go away. In fact, some collectors can be quite aggressive and may reach out to your friends, family, or neighbors in an effort to find you. You might be wondering if this is even legal. In some states, debt collectors are allowed to contact third parties such as neighbors or relatives, but only for the purpose of tracking you down. The law does not allow them to disclose that you owe a debt or discuss your finances with anyone else.
4. Your Stress and Anxiety Levels Will Probably Increase
When you try to avoid communicating with a debt collector, it can actually cause a lot of anxiety, stress, and concern. While it may be difficult to speak with them, avoiding contact altogether can be just as problematic.
5. You Will Probably Be Sued
If you’re being hounded by a debt collector, you may be wondering what will happen if you ignore them. The truth is, if you continue to ignore communications from the debt collector, they will likely file a collections lawsuit against you in court.
If you are served with a lawsuit and ignore this court filing, the debt collection company will then be able to get a default judgment against you. Once a default judgment is entered, the debt collector can garnish your wages, seize personal property, and have money taken out of your bank account.
If you’re being pursued by a debt collector, it’s usually not a good idea to ignore them. As we mentioned before, ignoring the situation will often make it worse, and won’t lead to a resolution. The bottom line is that ignoring your debt won’t make it disappear.
It’s important to take action if you’re contacted by a debt collector or served with a collections lawsuit. Responding to the situation head-on is often the best course of action. This way, you can try to come up with a solution that works for both parties.
What If You are Sued by a Debt Collector?
If you are being sued by a debt collector, there are a few things you need to do:
- If you are being contacted by a debt collector, do not automatically assume that you owe the debt they are alleging. The burden is on the debt collector to prove that you are responsible for the amount owed.
- If you have been served with a complaint in a debt collection lawsuit, it is important that you file your answer with the court within the required timeframe. This usually ranges from 20-30 days.
- If you are being sued by a debt collector, there are a few things you can do to defend yourself. First, you can raise any applicable affirmative defenses. For example, if the debt is too old, you can argue that the statute of limitations has expired. You can also demand that the debt collection company prove that you are responsible for the specific amount owed. If they cannot do so, you may be able to get the case dismissed.
What is the Best Way to Respond to Collectors?
The best way to deal with a debt collector is to send them a Debt Validation Letter. This document, which cites the Fair Debt Collection Practices Act, requires the collector to validate the debt and stops them from contacting you. You can also use the letter to dispute the debt, which will force the collector to report the debt as disputed to the credit bureaus.Clearone Advantage, Credit Associates, Credit 9, Americor Funding, Tripoint Lending, Lendvia, Simple Path Financial, New Start Capital, Point Break Financial, Sagemore Financial, Money Ladder, Advantage Preferred Financial, LoanQuo, Apply.Credit9, Mobilend