Two Questions About Your Rights In Debt Disputes

Financial debts can place a tremendous burden on your budget, and if you fall behind on these bills, it is possible for the creditor to take serious legal action against you. In these instances, it is important for you to understand your rights to make sure that they are not being violated. For those that have never had to battle debt collectors, learning the following answers to some routine questions will help you to make informed choices about how to best handle this problem. 

What Happens If You Simply Ignore Debt Related Lawsuits?

It is relatively common for aggressive creditors to file a lawsuit against the debtor when they have fallen behind on their payments. Sadly, some people will not take these lawsuits seriously, and therefore, they may attempt to ignore them. This can create nothing but problems for you because the court will enter a judgement against you by default if you are not there to argue your side of the case. 

When a judgment is entered against you, it will authorize the creditors to pursue more aggressive tactics to collect their money. This can result in you having your wages garnished. To fight these lawsuits, you will need to contact an attorney to help you fight these debts or settle for a more manageable amount. 

What Should You Do If You Have Already Paid The Debt That Is Being Collected?

There are some instances where individuals may have completely paid off a debt only to find that it is still being collected. Sadly, these issues can be difficult to argue if you have not kept all the documentation that you received when you paid the debt. However, it should be noted that an attorney will be able to help you fight this type of legal action. 

In instances where you have completely paid the debt, you may be entitled to compensation from the collector for the inconvenience and expense involved with arguing your case. Fortunately, your attorney will be able to advise you on how your local jurisdiction handles these types of claims, which can help you decide on an effective strategy for receiving compensation for having to defend yourself against overreaching collectors. 

Being involved in a dispute with aggressive debt collectors can be a source of major problems for you, and it is important for you to understand this process to makes sure that you are not taken advantage of by these creditors. Knowing the consequences of ignoring a lawsuit from these collectors and how to fight collections on debts you have already paid will help you have more of the knowledge you need to fight these actions. 

For professional legal help, contact a company such as Brackett & Strunk LLC.