If you’ve gotten a summons and complaint saying that you’re being sued by an Arizona debt collector, you shouldn’t waste any time looking into your options. There is not a one-size-fits-all solution with collections lawsuits. Here are some of the most popular ways to put this nightmare behind you as soon as possible.
Settle with the Debt Collector
You can always choose to settle with the party that’s suing you. This involves paying them less than the amount they are asking for in the lawsuit. If you go through the litigation process, there are more unknowns and you’ll have less control. When you settle, you’ll know exactly how much money you’re paying ahead of time. Because of this, even if you think you have a good case against the party that’s suing you, often you can save time and stress by just settling.You can negotiate with the creditor about how you will pay them which could be with a lump sum or with a payment plan. Typically, it will be in your best interest to go with a lump sum.
Fight Back in Court
Most of the time, if a debt collection lawsuit has been filed against you in the U.S., it’s by a junk debt buyer who has bought an old account of yours. Usually, their cases won’t be well put together at all. They most likely don’t have the evidence or the documentation they need to win. They want a default judgment so they can garnish your wages. And the numbers are in their favor. The vast majority of people in the United States don’t respond in a debt collection lawsuit, leading to a default judgment.When you know these facts, fighting back against the debt collector may be the obvious choice. You can challenge the lawsuit for a variety of reasons including:
- If you’ve already paid off your debt
- The amount of debt they are suing you over is incorrect
- The statute of limitations on your debt has passed
- You are not the correct person to sue
File for Bankruptcy
You can also resort to filing for bankruptcy. This is usually the best option if you have a larger amount of debt that could come to the surface even if you are being sued by an Arizona debt collector for a relatively small amount. If you are being sued for a large amount, opting for bankruptcy is usually in your best interest.Bankruptcy automatically halts the lawsuit against you. It also eliminates most of your debt including medical bills, personal loans, and credit card debt if you go the route of a Chapter 7 bankruptcy. However, if you’re being sued by a student loan lender, bankruptcy is likely not in your best interest since student loans aren’t dischargeable in bankruptcy.
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