you may have gotten a letter in the mail trying to collect that debt and interest, and saying you have to go to court. Debt collection agencies usually sue in small claims court when the claim is $7,000 or less.
It is important to know your rights and the steps to follow. Also, sometimes what the lawsuit claims may not be right. Or the person or company you owe money to did not follow the law in their steps to sue you.
Remember: The plaintiff is the person or company bringing the lawsuit. The defendant is the person or business being sued.
What papers do I get?First, you get a Statement of Small Claim and Notice of Trial form in the mail. This is a summons to small claims court. It means you have to go. It also has other important information:
Look at the section that says, “ Plaintiff 's Information.” If you don’t recognize the plaintiff’s name, the plaintiff may be a debt buyer. A debt buyer is a collection agency that buys the debt from the original creditor . The original creditor is the company that gave you the loan or credit. Once they buy the debt, the collection agency owns the debt and can collect it.
If the plaintiff is a debt buyer, you may have extra defenses in your case. For example: if the original creditor did not sell your debt to the debt buyer in the right way. See “How do I defend myself in my case?”
Look at the plaintiff’s claim section on the Statement of Small Claim and Notice of Trial form. It says why the plaintiff thinks you owe them money. The claim section lists:
When you get the Statement of Small Claim and Notice of Trial, do these things:
Look at the top section of the Statement of Small Claim and Notice of Trial form. It has the court and division where the plaintiff filed the claim, which is where you need to go. The court is in the district court where either you or the plaintiff lives or works. The bottom right section of the form lists the name and address of the court.
It is important to call the court before your scheduled hearing to:
Look at the bottom right section of the Statement of Small Claim and Notice of Trial form. It tells you:
Call the clerk’s office for the court listed to get information on how the hearing is held and where to go in the building. You can find the phone number here.
Go to court or connect via Zoom on the date and time of the hearing. If you don’t go, you will lose your case.
before-court What can I do before going to court?What you do before court depends on who is suing you: a debt buyer or an original creditor .
“Debt buyers” are debt collection agencies that “buy” debt from creditors. They buy it for a small percentage of what it is worth. The main goal of a debt buyer is to get as much of the debt paid as possible. They often harass people nonstop to get them to pay the debt. There are ways to stop the harassment.
Debt buyers often call you even after they sue you, to try to get you to pay all of the debt or make a payment plan. Stay strong! Don’t give them any financial information. If you admit a debt is yours, you could restart an old debt. Never say a debt is yours, even if you know it is.
Without saying the debt is yours, get information from the debt buyers before you do anything else. You can do this when they call you or in a letter. (You can get their address from letters they have sent you.) See the sample Letter to a Creditor Requesting Verification of Debt. Ask:
Also, ask for statements, a copy of the original contract, and a “chain of title” (documents that say who the debt was sold to each time it was sold). If the statute of limitations (6 years) 1 has expired, the debt collector can no longer sue you to collect the debt.
If the debt buyer sends you documents and you don’t recognize the debts they say you owe, the debt may not be yours. This could be because of fraud or identity theft. You will want to dispute the debt. Ask the company how to dispute the debt and ask for a Fraud Affidavit.
Once you get a summons to court, call or write to the original creditor to ask for information about the debt. When you contact the original creditor, it’s important that you let them know that you missed payments because of a financial hardship. This helps them know you can’t pay the full amount. They don’t need to know the full story but give them a few key statements that show your situation. For example, “I became ill” or “I lost my job” or “my hours were cut” etc.” Don’t be shy about your financial situation. Tell them if you are getting Social Security benefits, SNAP, MassHealth or any other government assistance. If you are “collection proof,” tell them this. If you don’t have the ability to pay, be honest about it.
Be careful how you communicate. Don’t be rude. Debt collection lawyers are more likely to be flexible with you if you seem sincere and polite. Also, many debt collectors are willing to create a plan that helps you pay your debt.
Make sure you write down the debt collectors' name in case you have to file a complaint against them for violating any laws.
If you’re dealing with a debt collector on the phone and things aren’t going well, don’t be afraid to hang up and call back. You might get a different person to talk to that you have an easier time with. Getting creditors to work with you can be frustrating. It may take several calls until you get someone who is willing to work with you and accept the amount that you’re willing to pay. Keep trying and don’t get frustrated!
What is an Answer, and do I have to file one?An Answer is a written statement that tells your side of the story. Your Answer explains:
In small claims court you don’t have to file an Answer to the summons . But it can help to file one because:
To file an Answer, you can fill out the Small Claims Answer form or write it in a signed letter. You might include in your Answer:
You file your answer with the clerk-magistrate and send a copy to the plaintiff. The plaintiff must get a copy of the Answer within 20 days of you getting the complaint.
If you do not file an Answer, you can tell the clerk-magistrate your defenses and claims during your hearing.
counterclaims What are counterclaims?You can file a Small Claims Counterclaim form if you have claims against the creditor suing you, like if you think they owe you money. But it is not required. You must also send a copy of the form to the plaintiff .
In a counterclaim , you are saying, “Even if I do owe the creditor money, the creditor owes me money because the creditor did something wrong.” When you put a counterclaim in your answer, you are asking for money for damages from the creditor. If the creditor owes you for damages, it may mean you should pay the creditor less than the amount you owe. Sometimes the damages equal as much as you owe or more. It is likely that you have counterclaims, even if you do not think you do.
A counterclaim is you suing the creditor. If you go to trial, you have to prove the things you say happened in your counterclaim.
Yes. You can file a motion to transfer a small claim to a regular civil court. You need to file the motion before the small claims trial. You may want to do this if you have a counterclaim . This is when you have a claim against the creditor .
Important
In small claims court, plaintiffs can’t appeal cases that they lose. But the creditor would be allowed to appeal in civil court.