Defense Strategies Used in Debt Lawsuits in Portland OR

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Due to the debtor’s evident liability, some collection lawsuits are quite simple, but others are more complicated. You might be able to get the lawsuit dismissed if a creditor or debt collector is suing you. There are various defense strategies used in debt lawsuits in Portland, OR. Technicalities or procedural requirements are frequently the basis of defenses in these situations.

Undoubtedly, if you’re being sued, this is a trying moment for you and your family. There are actions you may do to ease your concerns about debt; you’re not alone in this. Sadly, many people are unaware of the debt defense choices available to fight a creditor or debt lawsuit. Talk to our Portland legal team at Northwest Debt Defense Law Firm to discuss your best options.

What is Debt Defense?

Interestingly, it shares many similarities with other legal proceedings. The fundamental procedures and strategies used by attorneys to win court cases are the same. However, there are several nuances and unique factors that apply in debt collection cases.

You will be able to maintain legal representation throughout the whole case procedure if you have hired a debt defense lawyer. This contrasts with many creditors who frequently prefer to let their clients handle the problem on their own or with a less skilled attorney. The procedure of collecting money can be quite challenging and frustrating. It’s important to remember that the creditor wants your money and will stop at nothing to obtain it.

If you are being represented by a debt defense lawyer, debt collectors cannot get in touch with you. The collector will therefore be unable to call you, notify you of any debts, or make any other contact if you are represented. They must stop calling you for collections. A countersuit against the plaintiff may occasionally be possible, particularly if they violated your rights as protected by the Fair Debt Collection Practices Act (FDCPA).

What are the Defense Strategies Used in Debt Lawsuits in Portland?

The defenses that apply to your situation rely on it. Every debt-related case is different, so it’s critical that your debt defense plan be customized to your particular situation, objectives, goals, and legal rights.

Yet, in general, the following are the most frequent defense strategies used in debt lawsuits:

Mistaken Identity or Identity Theft

You can utilize mistaken identity as a defense if you have been sued for a debt you do not due because your name is the same as or very close to the name of the person who is responsible. Demand evidence proving you are responsible for the debt and urge the court to order the creditor to provide the original documents so you may demonstrate that they lack your signature, address, social security number, or other crucial details.

Remember that the burden of proving your debt for each and every charge rests with the plaintiff. P roof of non-ownership of the loan is not required. Never agree to a settlement if you’ve been the victim of identity theft or mistaken identity.

You Were an Authorized User

If you are being sued for using a credit card that you shared with another person, you might be able to use this defense. The distinction between a co-signer as well as an authorized user is key to the defense. You were an authorized user if someone else gave you the authorization to use his or her card, and you never agreed to be accountable for making payments on that card. You are not responsible for the credit card debt as you are an authorized user.

But, if you agreed to share responsibility for a credit card with another person when you signed a credit card agreement, you are considered a cosigner and are not covered by this defense. Even if you weren’t liable for any accusations, you could still be held accountable as a co-signer.

No Cosigner Notice

In the event that you’re being sued for an auto loan or other consumer loan for which you cosigned, you may be able to use this defense. The defense only holds true if you cosigned a loan on behalf of a person who is not your spouse and you did not get any of the cash, goods, or services that were the subject of the loan or acquired with its proceeds. 

Regardless of how you are listed on the loan documentation, the defense can still be applicable (i.e., buyer, co-buyer, borrower, co-borrower, etc.). That you did not personally benefit from loan proceeds is a critical element of this defense that you’ll need to prove. 

Dispute the Amount of the Debt

You have the ability to dispute the debt’s amount if you think it is inaccurate. Keep in mind that it is the plaintiff’s responsibility to demonstrate that you are responsible for the debt claimed in the lawsuit. 

The plaintiff must establish that the principal, interest, collection fees, and legal expenses were all agreed to in your contract, accurate, and legally charged. You always have the right to demand that the plaintiff produce your original contract, account statements, and in certain circumstances, even purchase receipts to demonstrate the debt amount.

A written notice stating the amount you owe, who you owe it to, and how long you have to contest the debt’s legality must be sent to you by a debt collector within five days of the first time they contact you. If you don’t contest the debt’s validity, in whole or in part, within 30 days after the day you received the notice, the debt will be deemed valid.

Payment of the Debt

Any collection action is always subject to the defense of payment. Even if you pay another party, it’s frequently a good defense. If you did not receive adequate notice of the debt transfer or sale, the new owner might be obligated to collect the payment from the original creditor if, for instance, your debt was transferred and you unintentionally paid the wrong person.

If you only paid a portion of the debt, you can still use payment as a defense. A judgment for an amount greater than what you owe cannot be granted to a creditor.

Statute of Limitations

It means that the debt is too old to be collected. Each state has a set amount of time that a creditor must wait before bringing a lawsuit against you. States have different time limits. In Oregon, the majority of debt has a six-year statute of limitations. The period normally begins to run after you make your last payment.

The burden of evidence for the defense will be on you. Even a tiny payment can reset the statute of limitations. If you wish to use the statute of limitations as a defense, you should never make a payment.

Bankruptcy Option

The debt for which you are being sued is no longer lawfully collectible if you have already filed for bankruptcy while still being sued by a creditor or debt collector. If you file bankruptcy, debt collectors cannot continue to pursue you. Furthermore, you have a complete defense to the lawsuit if a debt was discharged through bankruptcy but you were sued after the event.

Other Defenses to Collections Lawsuits

Other defense strategies used in debt lawsuits include the following:

• The debtor never obtained the service or product that the creditor is seeking payment for.
• The debtor received a damaged or defective good or service.
• In an instance of identity theft or mistaken identity, someone else incurred the debt.
• The creditor told a lie to or threatened the debtor to engage in the contract
• The contract was lawfully canceled.

We Got The Debt Defense You Need!

Discover strategies for a debt lawsuit defense as soon as a debt collector, creditor, or debt buyer files a debt collection lawsuit against you. As you see, there are a lot of potential defenses to lawsuits for debt. However, it’s crucial to consult with a knowledgeable attorney to determine which options are most appropriate for your case.

At the Northwest Debt Defense Law Firm, we thoroughly examine each client’s case to identify the debt defense strategies that are most appropriate and likely to be successful. Start now by requesting a free debt analysis from our debt defense lawyer. We assist clients in Portland, Salem, and Medford in Oregon as well as in Seattle, Tacoma, and Vancouver in Washington.