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RELIEF FROM ZOMBIE DEBT AND DEBT COLLECTION LAWSUITS

Have you been harassed or sued in court by a debt collection company for a very old debt or a debt that is not even yours? Have you been sued or received endless phone calls and letters from a debt collection company that you have never done business with or have never even heard of? Chances are, you are not alone.  The courts in Louisville and the entire state of Kentucky are flooded with debt collection lawsuits.  Attorney Ron Aslam has the skill and knowledge to fight for you and defend your rights.

Debt collectors purchase bad debt from credit card companies or other original creditors in bulk for pennies on the dollar and then sue to collect the original balance plus interest and other additional fees.  This type of debt is sometimes called “zombie debt” or “scavenger debt” and the collection of this zombie debt is a multi-million dollar industry in Kentucky and around the nation.  While zombie debt is legally valid and collectible, debt collectors have little, if any, idea about the people whose debt they have purchased and they usually have little proof that the debts are legally owed by the person that has been sued.  Oftentimes, the only proof that the debt collectors possess is a computer print-out with a name, account number, and account balance.

Without sufficient proof to establish the debt, the debt collectors may attempt to threaten or coerce you into agreeing to pay the debt or will simply sue you in court to recover the debt. Just as the zombie debt is purchased in bulk, the debt collectors file lawsuits in bulk in an attempt to make money for themselves.  In the vast majority of cases, debtors do not respond or defend themselves in court when faced with a lawsuit.  Ignoring a lawsuit is the worst possible mistake an alleged debtor can make. IF YOU HAVE BEEN SUED ON A DEBT, IT IS VITAL THAT YOU TIMELY FILE AN ANSWER TO THE COMPLAINT.  When a debtor fails to answer a complaint within the time allowed, usually 20 days after the complaint has been served, the court will grant a default judgment, which will give the debt collection company everything that they have asked for in the suit without having to provide any proof whatsoever.  A default judgment can lead to the garnishment of your wages or the placement of a lien on your home.  A default judgment gives the debt collectors many other additional options to force you to pay whether or not you could have defended yourself in court.  

For whatever reason, you may have been led to believe that there is nothing you can do to defend yourself when you have been sued for a debt.  THIS IS NOT THE CASE.  Hiring an attorney to defend you will greatly increase your chances for a favorable outcome whether it is a reduction of the amount of the debt you owe or to even have the case dismissed outright.  Depending on the circumstances of each case, there are many legal defenses available to alleged debtors.  For example, the evidence that the debt collectors present in support of their lawsuit will often be inadmissible under the Kentucky Rules of Evidence.  Also, with old debt, there is a chance that a lawsuit may be barred by the statute of limitations.  In other cases, certain debts may be discharged by bankruptcy.  Sometimes, the debt collectors sue the wrong person completely or a person who is otherwise not legally responsible for the alleged debt. While the legal process can be intimidating and confusing, a trained attorney can quickly identify the weaknesses in the debt collector’s case and use these weaknesses to save you money in the long run.

If you have sued by a debt collection company, it is vital to contact an attorney as soon as possible to avoid a default judgment, garnishment, and other adverse consequences of having a judgment entered against you. When you are served with a complaint and summons to court, you may have only as little as 20 days to file your answer before default judgment proceedings begin. Call Louisville Attorney Ron Aslam at (502) 581-1676 for a free consultation.  At the Ron Aslam Law Office, our team is professionally, ethically, and personally committed to representing the interests of our clients to the fullest extent of the law.  Attorney Ron Aslam is an experienced and distinguished courtroom litigator having worked as both a Kentucky Public Defender and a Prosecutor prior to opening his own firm in 2011. Ron always works hard to give our clients the best possible opportunity for a successful resolution. 

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