When you face action from a debt collector, the threat of a lawsuit can be intimidating. If you only owe a small amount of money, the debt collector can file a lawsuit against you in small claims court. When this happens, you will have to show up in court to defend yourself.
Small Claims Court
Small claims court is a system that is administered by the state governments. Every state has a small claims court system and it is used to collect smaller debts. Each state has a dollar limit on what can be included in a lawsuit for small claims. For example, the collector may only be able to file a lawsuit if the debt is less than $5,000. If the debt is more than that amount, the debt collector will have to take other action.
Why Small Claims?
Debt collectors will try to use small claims court whenever possible to try to get their money. With this type of lawsuit, you do not have to hire a lawyer to represent you. This allows the collection agency to save a substantial amount of money on legal costs. They can simply show up to the hearing, represent themselves and then get a judgment.
The Process
When a debt collector files a lawsuit against you in small claims court, you will have to go through the correct process before the debt is enforced. You will be served a summons by the court. Then you will have to appear to the court on the specific date that is set. The clerk-magistrate will look at the facts of the case and unless you can come up with a valid reason that you should not have to pay the debt, it will be enforced. For example, if the statute of limitations on the debt has expired, this would represent a legitimate defense against paying the debt. In that case, you would not have to pay the creditor.
Legal Representation
If you believe that you should not have to pay the debt, you may want to hire legal representation to help you with the process. In many small claims courts, they have so many cases that they do not always stop and hear every detail of a case. This often pushes the case in favor of the debt collector. Without legal representation, you may not have a chance to fight the ruling by the court.
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