Debt Defense: How to Win
the Fight Against Creditors

See also: Understanding Loans and Savings

It's difficult to be in debt, but it might be even more challenging to owe money. You might start thinking about how you will get out of debt.

The best way to do this is by consulting a reputable debt lawyer who can help you find your options and get the best possible outcome.

What Is Debt Defense?

Debt defense is a legal strategy that helps people whose creditors are suing. It's a way to fight against unfair debt collection practices and can help you get the relief you need to get on track with your finances.

Creditors try to collect from you in various ways, including lawsuits and wage garnishments. When they do this without following proper procedures or respecting your rights as a consumer, it's called "unfair debt collection."

Suppose creditors have harassed you, or you believe they've violated the law somehow. In that case, you can file a claim against them with your state's attorney general or local consumer protection agency.

Debt defense can apply to either of these scenarios:

  • Debt settlement: This is where you negotiate with your creditors to pay them less than the total amount you owe. Of course, Debt Relief Attorneys Houston can help you settle all the legalities regarding your debt. You can pay the debt in installments or through a lump sum payment.

  • Debt negotiation: This is similar to debt settlement, except that it involves negotiating with creditors willing to accept less than what you owe them in exchange for taking on new debts from other lenders or investors.

  • Bankruptcy: This legal process allows you to eliminate certain debts and reorganize your finances. It's only sometimes the best option, but it can help if you've been struggling with debt for a long time and need help making payments.

Why Should I Go for Debt Defense?

There are many reasons why you should consider the option of debt defense.

  • The first reason is that you can fight many different types of debt, and each situation is unique. You may have considerable debt or are just starting your career and must build up your credit score.

  • The second reason is that you must fight back if creditors have wronged you. Creditors only sometimes want to help you; they want their money and are fearless in taking it from you if necessary. If they try to sue you, then it's time for action!

  • The third reason is that there are many benefits to debt defense—not only financial but also emotional. You might feel guilty that your creditors are taking advantage of your situation, but don't let that guilt keep you from fighting back!

Who Can Help Me Fight Creditors?

If you're having trouble with creditors, you're not alone. Millions of people are struggling to meet their financial obligations every day.

But if you're one of them, don't despair; there are ways to fight back.

You can start by finding out who can help you fight creditors. You may have heard about debt defense attorneys and thought finding one might be too expensive or complicated. That's not true. Many lawyers specialize in this work and will work with people with little money for legal fees.

Another option is a credit counselor who works with debtors to help them develop budgets and payment plans to get out from under their debt load more quickly and efficiently than trying to do it alone (or even through bankruptcy). Credit counselors can also help determine whether or not filing for bankruptcy would be beneficial for your situation.

How Do I Get Started Fighting My Debt?

You can take a few simple steps to get started fighting your debt.

  • First, you'll want to determine your debt and how much it's worth. If you need to know how much you owe, this can be confusing--but it's essential! You need to know how much money is owed before deciding where to start paying it off.

  • Second, consider whether it makes sense for you to work with creditors or if it would be better for someone else to handle the negotiations, like an expert lawyer.

Suppose there are any extenuating circumstances (like if your income is low or English isn't your first language). In that case, it might make sense for someone with more experience with these situations to negotiate with creditors on your behalf.

Building a Strong Defense

The first step in building a solid defense is to gather evidence that supports your position. This may include:

  • Statements from the creditor and previous attempts to collect on the debt.

  • Statements from credit reporting agencies about debts that should have been paid off but were not.

  • Evidence that you had paid off other debts, such as credit cards or medical bills when you said you would.

  • Proof of your income, including tax returns and pay stubs.

Proof of any payments made towards the debt since it was charged off by the creditor, such as payments made by wage garnishment or bank account seizures.

Are you facing a lawsuit from a creditor? Don't panic—you can win the fight.

Tips for Responding to a Lawsuit

  • Do: Keep calm. It's essential to keep your cool and be prepared but try not to let the situation get you too upset or angry.

  • Do: Have all of your files ready. If you need to go back and gather evidence, do it now so that you don't have any trouble at trial.

  • Don't: Respond immediately. You want to ensure that your response is well thought-out and accurate, so take some time before responding to the lawsuit by hiring an attorney, gathering evidence, and mentally preparing yourself for what's ahead.

Final Thoughts

It is essential to be proactive and understand what debt is legitimate and what is not.

Debt collectors have been known to harass people over the phone, try to take unlawful amounts of money out of their paychecks, sue them, and even garnish their wages to collect a debt they may or may not have.

If you find yourself in this position, you need legal representation that knows how to handle your situation.

About the Author

Writer Tracy Gomez has been honing her talent for more than ten years and has a track record of creating engaging content that appeals to her target audience and clients.

Tracy ensures that when she writes, people will get nothing but relevant information to help them when needed. And when not writing, she uses her spare time to travel and gather great memories with family and friends.