Here at the law offices of Paul E. Smith, we know you will have many questions, and we will strive to answer all of them. But here's a few of the most frequently asked questions answered for your convenience:
- How much do you charge to defend a collection lawsuit?
While each case is evaluated independently, the general rule is that you should expect to pay a flat, one-time fee of approximately 10% of the amount being sought in the lawsuit, with a minimum of $1,000. You will also be responsible for your own litigation costs, such as filing fees and service of process fees, which requires a deposit of $350-$450 from which your case's bills will be paid. Although rare, an additional deposit in an amount between $200-$500 may become necessary for cases that are about to go to trial. - How much do you charge to sue a debt collector for violating the Fair Debt Collection Practices Act?
We do not charge any fee up front for suing debt collectors and we do not take any percentage of your recovery. The Fair Debt Collection Practices Act mandates that debt collectors pay the attorney fees of successful plaintiffs in addition to what they must pay the plaintiff in statutory and actual damages. Thus, our fee is paid by the debt collectors or we do not get paid. You may be required to cover your own litigation costs, such as filing fees and service of process fees. Additional information is available as part of our free consultation process. - I have been served with a summons for a credit card debt. What do I have to do?
Whether by hiring an attorney or doing it on your own, you absolutely must respond to the lawsuit as instructed on the summons itself, primarily by serving and filing an Answer and paying the Court's filing fee, or the Court will enter a default judgment against you. A default judgment will entitle the debt collector and/or its attorney to garnish your wages, levy your bank accounts, and/or place liens on any real estate that you own. Filing a response puts the case at issue and entitles each side to serve discovery requests and eventually the Court will set a trial date, which tends to be approximately 9-12 months after the case was filed. - I think I probably owed the debt I was sued on, so defending the case is futile, right?
Absolutely not. Each case depends on the facts of that particular case, but in general there are good reasons to defend a collection lawsuit even if you think you may have owed the debt. For example, not defending the lawsuit will entitle the debt collector to an immediate default judgment, whereas defending the case puts it "at issue" and means it won't go to trial usually for approximately 9-12 months. During this time, you have the right to make them produce all their documents and answer questions under oath. At trial, they have the burden of proof and must prove their case through admissible evidence in the form of testimony and documents. Defending the case may also make it possible to leverage a more favorable settlement, whereas allowing judgment to be entered leaves you with little negotiating power. - I notice that you are located in Los Angeles, do you take cases outside the Los Angeles area?
Yes, we handle cases throughout California. Paul will personally represent you at your trial regardless of location if we agree to take the case. Pre-trial commitments are managed through telephonic court appearances, fax filing, etc. We have experience in all four districts of the federal courts located in California bringing FDCPA lawsuits.