Creditors can be very intimidating and persistent when it comes to debt collection. They may threaten wage garnishment or legal action. While some creditors do go as far as obtaining a court order to collect on the debt, a recent report suggests that these lawsuits are often flawed and full of holes.
Most people are easily scared by creditors, especially when the idea of being sued comes into play. The New York Times recently reported that “90 percent of credit card lawsuits are flawed and can’t prove the person owes the debt.” Poor record keeping, inability to provide adequate documentation of prior collection efforts and even fraudulent signing of documents by company employees are major grounds for consumer dispute and victory in court.
While consumers tied up in litigation may now have more of a leg to stand on, defending against a lawsuit can be costly. A lot of time and money is required to fight a lawsuit in court, especially if the consumer loses and is still liable for the repayment of the debt. However, filing for bankruptcy can be one option for quickly halting lawsuits while efforts are made to verify and resolve any debts under a new court order.