I received papers from the Court telling me I have been sued. How long do I have to respond?

The Summons attached to the Complaint will tell you how long you have to respond.  If you do not respond within the given timeframe, the Court may enter a default judgment against you.  A default judgment may be collected using the same means as any other judgment in Alabama.  See the FAQ “What happens if the person suing me wins and gets a judgment against me?” for more information.

 

I owe the debt.  Why do I need an attorney?

Just because you owe the debt does not mean that the Plaintiff (the person/company filing the lawsuit against you) is entitled to a judgment against you.  The Plaintiff must prove its case in Court, meaning that they must submit admissible evidence to the Court proving that you owe them money. A good collection defense attorney will make sure this happens.

In some cases, there are affirmative defenses and/or counterclaims that can be asserted. Unless you deal with debt collection defense regularly, it is unlikely that you will be aware of your legal rights. Below are examples of possible affirmative defenses and counterclaims:

  • Fair Debt Collection Practices Act (FDCPA)
  • Truth in Lending Act (TILA)
  • Fair Credit Billing Act (FCBA)
  • Telephone Consumer Protection Act (TCPA)
  • Debt has been paid
  • Debt is not owed
  • Debt is barred by the statute of limitations
  • Plaintiff is not the proper party (or cannot prove they are the proper party) to bring the lawsuit

 

I have never heard of the creditor suing me.  I don’t believe I owe them any money.  Why do I need an attorney?

Chances are that if you have not heard of the creditor suing you, it is because the company you borrowed money from sold the debt (and the right to collect the debt) to a debt buyer. The largest debt buyers in the country are:

  • Midland Funding
  • Midland Credit Management
  • Asset Acceptance Capital Corporation
  • Portfolio Recovery Associates
  • Asta Funding
  • CACH
  • Cavalry SPV
  • eCAST Settlement Corp.
  • Fourscore
  • LVNV Funding
  • Ophrys
  • Square Two Financial
  • Unifund Corporation

Most debt is not just sold once either.  It is sold multiple times to different debt buyers

It is also possible that you are the victim of identity theft or that you have the same name as the person who actually borrowed the money.

 

What happens if the person suing me wins and gets a judgment against me?

The judgment will begin to accrue interest, the amount of which depends on the terms of the judgment.

In Alabama, once the Plaintiff has a judgment, there are a number of way they may legally collect upon it.

A judgment creditor may garnish up to 25% of your paycheck.  More information on the process of garnishment and your right to claim your wages, or a portion of your wages, as exempt is available here:

A judgment creditor may also garnish your bank accounts.

A judgment creditor may also record the judgment in the probate court.  Once recorded, the judgment becomes “a lien in the county where filed on all property of the defendant which is subject to levy and sale under execution.”   Ala. Code § 6-9-211 (1975).  Basically, it becomes a lien on all your real and personal property that is located in the county where the judgment is recorded.

A judgment creditor may also seek to levy your real and personal property and sell it under execution.