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During these high-inflation times, many Americans are struggling to pay their debts and obligations, ultimately leading collection agencies file lawsuits against them. If you find yourself in a similar situation, the first thing you might be wondering is how you can get your lawsuit dismissed.
Getting a debt lawsuit dismissed can be challenging, but it’s possible if you follow the correct legal procedures and have a strong defense. Here’s a step-by-step guide to help you navigate this process:
1. Understand the Lawsuit and Deadlines
Carefully review the lawsuit paperwork to understand the creditor’s claims, including the amount of debt they say you owe and any supporting evidence they provide.
Know Your Deadlines: You typically have a limited time to respond to the lawsuit, usually 20-30 days from when you’re served. Failing to respond in time can result in a default judgment against you.
2. Respond to the Lawsuit
To avoid a default judgment, you must file an “Answer” with the court. In your answer, you should either admit, deny, or state that you lack sufficient information to respond to each allegation in the complaint.
In your answer, include any defenses you have. Common defenses include:
- Statute of Limitations: The debt is too old to be legally enforceable.
- Lack of Standing: The plaintiff doesn’t have the legal right to sue you (e.g., they can’t prove they own the debt).
- Improper Service: You weren’t properly served with the lawsuit.
- Debt Was Paid or Discharged: You already paid the debt, or it was discharged in bankruptcy.
3. File a Motion to Dismiss
Depending on the specifics of your case, you may be able to file a motion to dismiss the lawsuit. Common grounds for dismissal include:
- Lack of Jurisdiction: The court doesn’t have the authority to hear the case (e.g., you were sued in the wrong state).
- Failure to State a Claim: The complaint doesn’t contain sufficient legal grounds to sue you.
- Supporting Evidence: When filing a motion to dismiss, include any evidence or legal arguments that support your request. For example, if you’re claiming the statute of limitations has expired, provide proof of the last payment date or account statement showing when the debt became due.
4. Request Debt Validation
Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request validation of the debt. If the creditor cannot provide sufficient proof that the debt is valid, you can use this as a defense in your lawsuit.
File a Motion for Summary Judgment: If the creditor cannot validate the debt, you may file a motion for summary judgment, asking the court to dismiss the case because there is no genuine dispute over the facts.
5. Negotiate a Settlement
If you don’t have a strong defense or prefer to avoid the stress of going to trial and fighting your collectors, consider negotiating a debt settlement with the creditor. You can also contact a debt consolidation company. This could involve paying a reduced amount or setting up a payment plan. Ensure that any settlement agreement is in writing and that it includes a dismissal of the lawsuit.
6. Attend Court Hearings
If your case goes to court, it’s crucial to attend all hearings. Failure to appear can again result in a default judgment against you.
At the hearing, present your evidence and arguments to the judge. Be clear, concise, and professional.
7. Consider Legal Representation
If the amount of debt is significant or you’re unsure about handling the case yourself, consider hiring a debt defense attorney (Some popular ones in the U.S. include Oak View Law Group or Vlahakis Law Group). They can help you navigate the legal process, identify potential defenses, and increase your chances of getting the lawsuit dismissed.
8. File for Bankruptcy
If you’re overwhelmed by debt and have no viable defenses, filing for bankruptcy may be an option. Filing for bankruptcy triggers an automatic stay, which temporarily halts all collection activities, including lawsuits. Depending on the type of bankruptcy, some or all of your debts may be discharged.
9. Monitor the Outcome
If the court grants your motion to dismiss, ensure that you receive a copy of the dismissal order. Keep this document for your records.
Monitor your credit report to ensure the debt is not improperly reported as still owed or in collections after the lawsuit is dismissed.
Key Takeaways:
- Act Quickly: Time is critical when responding to a debt lawsuit. Missing deadlines can lead to a default judgment against you.
- Know Your Rights: Understand your legal rights and defenses, such as the statute of limitations or improper service.
- Seek Help: Don’t hesitate to consult a lawyer if you’re unsure about the legal process or your defense strategy.
There you go. By following these steps, you can increase your chances of getting a debt lawsuit dismissed or achieving a more favorable outcome.
Mark Turner is an author and editor at Sophisticated Investor. He has over two decades of experience in the financial industry as a broker in both Chicago and New York and has written for several top tier publications. He currently covers the topics of alternative investments, geopolitical events, US economy, portfolio diversification and others.
