When debts come due and are not repaid, debt collection lawsuits usually follow soon thereafter. These types of lawsuits occur often in California because Californians carry more debt than the national average. For instance, 4% of California automobile loans are in delinquency, with the average California resident owing nearly $14,000 dollars. The average California college graduate has more than $18,000 in student loans and just over 10% are delinquent in making their repayments.
The professionals at the Law Offices of Kenechi R. Agu handle a wide assortment of debt collection cases, including:
- Vehicle repossessions;
- Overdue vehicle loan payments;
- Credit card debt; and
- Private student loans.
When You Are Being Sued for Your Debts
Debt collection lawsuits are complex and require the experience and skills of a debt collection defense attorney. Notification that you are being sued for debt collection takes the form of a summons and a complaint indicating that you are being sued by a creditor. When this happens, you should immediately contact a debt collection defense attorney. An experienced debt collection attorney serving the Los Angeles area will be able to help you respond appropriately and within the required time limits. For example, a formal answer is due to the court within 30 days from your receipt of the summons and if you do not file a formal answer, a default judgment will be made against you.
Statute of Limitations in California
Under California law, a creditor has up to four years to bring a suit against a debtor on a breach of a written contract. For contracts that are made orally, the statute of limitations is two years. If the creditor does not do so within the statute of limitations (four years for written contracts and two years for oral contracts), the creditor forfeits the right to initiate a lawsuit for your failure to pay on that debt. When you are faced with a debt lawsuit, take a moment to determine if the four-year or two-year statute of limitations, whichever is applicable, has passed since you last made a payment to your creditor.
When there are multiple creditors seeking repayment, there is a high likelihood that the case will result in litigation. If a credit card company, a mortgage lender and a motor vehicle financier are all seeking repayment from you, it is very unlikely that you can pay all three of them. These creditors will want to have payment priority over one another.
Contacting a Debt Collection Defense Attorney in Los Angeles
Being sued by a creditor or multiple creditors can be very scary, especially when you feel like there is no practical way that you could possibly repay your debts. The professionals at the Law Offices of Kenechi R. Agu are here to help you. When you find yourself in need of debt relief and credit repair, please do not hesitate to contact the lawyers at the Law Offices of Kenechi R. Agu.