What to do if I’m being sued by a law firm that represents a debt collector?

I am being sued by a collection agency for a debt. I cannot afford an attorney. Basically, I defaulted on the debt that was charged off on 9/30/05 for $5,878.53 and interest of $3,264.63. The attorney has a copy of the original check that I signed for the loan and has requested summary judgment on 1/7/11. I had responded and sent interrogatories, admission, etc asking for the signed contract when it was with the 1st collection law firm; which stopped pursuing the case. It was then given to the 2nd law firm, which has requested the summary judgment. I responded to the request for summary judgment saying they did not have the original contract. Now these attorneys have sent me a copy. What are my options now? I cannot afford to have my wages or checking account garnished? Can I use KRS 371.050 as a defense to only pay what the collection agency paid for the debt from my initial creditor? It states the below but  don’t know if it works for debt collection. What can I do? 371.050 Assignee to aver consideration — Amount recoverable. In an action on any assignment of a writing, the consideration for the assignment shall be averred. The plaintiff shall recover no more than the consideration actually paid by him for the note or assignment.

Asked on December 30, 2010 under Bankruptcy Law, Kentucky

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Never ever agree you owe a debt when pursued by a collection agency.  Second, never do it again when the debt is sold to someone else. Indicate now the statute of limitations has run and they don't have a leg to stand on to obtain it. If the contract was assigned, you were not a third party beneficiary to that contract and not a party to it either. That was between the firm and collection agency.  What type of debt is this? If it is for a debt the initial entity had to be licensed to get back from you, make sure they were licensed.  If they were, try the statute of limitations.  If you agreed in writing you owe the debt, you may have revived the debt and the statute of limitations defense may no longer apply. Consider talking to a lawyer - -try legal aid or the state bar may have their own low cost or no cost help.


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