How does one go about filing a lawsuit?

Question

This concern stems from a debt collector company that refuses to contact me with written correspondence after numerous attempts at contact - but still are claiming that I owe them the full amount of a debt I owed 4 years ago (in the ballpark of $6k) - and they are claiming the same debt twice on my credit report (one from the original credit - and one from the debt collector).

How expensive would it be to hire a lawyer? I would like to hire one for the purpose of communicating with them that I would pay them 10-20% of the total - as opposed to the 90% they want - basically because they are junk debt buyers that probably bought it for 2 cents per dollar owed.

Please let me know if you have any advice as to which direction I should take. Thanks.

Answer 1

Lets start with discussing what a junk buyer does. They gamble. They are betting that for $100 they can collect $5000 from you. Not bad for a Vegas bet. So why would you expect them to accept $100? That's an even money bet for them and they will obviously refuse it.

If you have any intention of negotiating a settlement, you better aim at 50% and go up from there.

Now about the lawsuit. Be aware that if you actually owe them this money, and you do sue them, they will definately countersue you. Why not? They have you in court and will probably win. The best you can hope for is to win your lawsuit, win $1000, and apply that to their debt. Sorry, facts are facts.

Even worse, a smart lawyer may counter-sue you because of a frivilous lawsuit. Be sure you have a good basis for a lawsuit before you start playing games with them.


So how do you file? You need the following:

1) A certified dispute letter to the credit repair agency.

2) A certified letter to the creditor/collection agency demanding validation of the debt.

3) A second certified letter with your intent to file a lawsuit if they do not validate the debt.

If you have this, you can now prove that they failed to follow the Fair Debt Collections Act and you can proceed with a lawsuit. See the link below for some guidance. But you need to search for your states court rules regarding small claims court.

Many states have brochures and forms available on-line. You must follow the filing rules exactly.