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Tuesday, June 22, 2010

Protection From Debt Collectors: Part 3

This is Part 3 of a multi-part series.  Part 1 focused on identifying the applicable Federal Law; Part 2 focused on allowable communications from FDCPA debt collectors.

Can a Creditor (Lender) or Debt Collector File a Lawsuit Against a Debtor (Consumer) to Attempt to Collect a Debt?


1. As a general rule, yes, a creditor or debt collector working on behalf of a creditor can file a lawsuit against a debtor to attempt to collect a debt.


a)  This is usually, but not always, true. If you are being sued over a debt, or have been threatened with a lawsuit over a debt, you should seek advice from a qualified attorney.

2. If the debt was secured with property belonging to the debtor or property belonging to someone on the debtor's behalf, a lawsuit to  recover the debt owed might be able to be filed in the jurisdiction where the property is located.


3. Unless number two above applies, the general rule is that a lawsuit filed by a creditor or debt collector must be filed in the jurisdiction in which the debtor lives or the jurisdiction in which the original contract creating the debt was executed.


MR. MCGRATH PROVIDES A DEFENSE AGAINST DEBT COLLECTORS BASED ON APPLICABLE FEDERAL AND/OR STATE LAW.  CLICK HERE TO FIND OUT MORE.