Sued In Alabama By A Debt Collector? What Do You Do Next?
First, do not panic. While I would never suggest that you should be thrilled at being sued, because you should not, being sued is not the same thing as losing.
Being sued is not the same thing as having a judgment against you.
Being sued is not the same thing as having your wages garnished.
That is . . . if you will take action and not allow a default judgment to be entered against you. If a default judgment is entered against you, then being sued is the same thing as losing, having your wages and bank accounts garnished, credit report damaged, etc.
But keep in mind that the first thing to do is to make sure that you are not making any decisions based upon a panic state of mind. The debt buyer, and its collection lawyer, are hoping that you will panic and will not make a careful and reasoned decision.
The fact that you are here, reading this, suggests that you have already won this part of the battle by not panicking and instead you are learning more about your rights so that you know what action to take.
The second thing to do is to keep in mind that the debt buyer must prove that it owns the debt.
You see, the collection lawyers want you to have this internal conversation in your head:
“Well, I know that owed some money on some old credit card. So I guess this new company [Asset Acceptance, Cavarly; LVNV; Midland, Unifund; etc.] must own that debt now.”
Do you see the problem with that way of thinking? It is full of assumptions.
It assumes that you really do owe an old credit card debt. Are you sure? Are you sure that it was not paid off when you refinanced your house? Are you sure that you did not pay it off through a debt collector?
It also assumes that this company that has sued you, that you have probably never heard of, owns that debt.
Why would we assume this? Why not assume that a neighbor owns the debt? There’s no basis for assuming that this company, that you have never heard of, owns the debt that you may or may not owe.
We suggest, instead, that the conversation in your head should go something like this:
“Okay, I’ve been sued by Midland Funding. I have no idea if I owe Midland Funding any money because I have no idea who Midland Funding is. I seem to recall owing an old credit card debt. I wonder if this is the same debt? If it is, how in the world did Midland Funding get it? I think that I will do some investigation and check things out before assuming that this company that I’ve never heard of, Midland Funding, owns a debt that I may or may not owe.”
The difference is in the first way of thinking, we concede that this company that has sued us is entitled to win.
The truth of the matter is, however, when anybody goes into court and files a lawsuit they bear what is known as the burden of proof.
The burden of proof simply means that the plaintiff, in this case the debt buyer, must prove that it is entitled to win. You do not have to prove that you are innocent. Instead, the plaintiff, always, bears the burden of proving that you are liable to it and owe it money damages.
That is the theoretical (but true) way of analyzing any lawsuit. When you combine that with the practical reality – which is that these debt buyers almost never can or will prove that they own the debt – you can see why it is often a terrible mistake to assume that you owe this debt buyer any money.
Third, you need to take action before you run out of time.
If you have been sued in Alabama Small Claims Court, you have 14 days to respond.
If you have been sued in Alabama District Court, you have 14 days to respond.
If you have been sued in Alabama Circuit Court, you have 30 days to respond.
If you do not respond in time, then you can expect a default judgment to be entered against you.
Feel free to look around and find out what is helpful to you — we have tried to provide most information in video (or audio) format if you prefer to learn that way and also in written form so if that is the way you like to learn it will be available for you.
To set up a meeting or consultation with us about your Alabama Debt Buyer Lawsuit:
You can call us at 205-879-2447. Let the receptionist know you have been sued and give her the name of the company suing you and in what county you were sued. If we are available, you will be transferred to us. If we are with another client or in court, she will take your information and send that to us so we can contact you back as soon as possible. Tell her if you have a preference on a call or email and what times are good or bad for you.
You can contact us through our website — please let us know who has sued you, and where, and in what court and whether you prefer to be contacted by phone or by email. You will get an automatic email back letting you know we have received your contact and then we will either call or email you as soon as possible.
