Credit Management Services has a long, sordid history of suing Nebraskans, often for unpaid medical bills and for small amounts as low as $60. Missing one doctor’s payment often landed struggling families in financial hot waters. Furthermore, Nebraska law allows creditors to sue consumers time and time again, a practice that is prohibited or considered harassment in other states.
These factors have led to companies like Credit Management Services taking aggressive action against Nebraskan consumers, including garnishing their wages and suing them. In one recent year, 79,000 debt collection lawsuits were filed against Debtors. Since CMS represents about two-thirds of the hospitals in Nebraska, as well as doctor’s offices and clinics, if you are sued by a medical debt collection company, it will probably be CMS. If you find yourself in this situation, it is vital that you know the steps you can take to protect your rights.
Review the Paperwork
Read the documents you have received carefully. Try to see if there are any noticeable mistakes, such as the spelling of your name and the amount of the alleged debt.
Respond to the Lawsuit
Many consumers make the mistake of ignoring legal notices, hoping the problem will just go away. However, this is the worst thing you can do. By not presenting any type of defense, you can allow the debt collector to get a default judgment against you, which may include payment for court costs and their own attorney fees, even if they wouldn’t have been able to prove the case against you. By responding to the lawsuit, you are holding CMS to the burden of showing you owe the debt and they have a right to collect on it.
However, responding to a lawsuit often involves several important and complex steps that can benefit from the help of a lawyer, including:
Preparing a Formal Answer
After you are sued in Nebraska, you have 30 days to file your answer with the court. This document says whether you agree or not that you owe the creditor money. You can use Nebraska’s answer and general denial form.
However, if you need to admit to certain allegations in the suit while denying others or if you lack sufficient information to accurately respond to an allegation, you may need a lawyer to prepare a formal answer for you.
Asserting Affirmative Defenses
As part of your answer, you may want to assert certain affirmative defenses that say why CMS does not have a viable claim against you. For some defenses, you must include them at the time you file your response, or you lose the right to assert them later.
Some affirmative defenses may include:
- The collection account does not belong to you, either because the account is in someone else’s name or is not you, or someone stole your identity and established the account
- You already paid the debt, such as through a debt settlement agreement
- It has been more than five years since your last payment, so the debt is no longer collectable under Nebraska’s statute of limitations for debt collections
- CMS is not the owner of the debt, which is a common occurrence in the debt collection industry because creditors often sell uncollected debt to collection agencies and may not provide accurate records to establish ownership
- The debt has already been discharged as part of your bankruptcy filing so you are no longer legally required to pay it
An experienced lawyer can carefully review the circumstances and records to determine which defenses to raise.
Filing Your Response
Once your answer is prepared, it must be filed with the court and you must provide a copy to CMS by following the appropriate legal process.
Keep a Record of All Communications
Debt collectors must follow specific rules when attempting to collect a debt. It’s possible that they could have violated your rights, which might give you your own claim to assert against them. For example, if they continue to contact you (except for certain reasons) after you have asked them not to, you may have a claim against them. While this may not completely eliminate the case against you, it may help provide some leverage in negotiations or lower the potential amount they might be able to recover from you.
Talk to a Lawyer
Going up against a powerful debt collector like Credit Management Services can be difficult. But you don’t have to do it alone. A lawyer can defend you, protect your rights, and explain your options. Contact us today to learn more about how we can help.
