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This is not legal advice not should it be construed as such. If you would like legal advice, please considering scheduling a free consultation with a local attorney.

Have you been served with a Midland Credit Management lawsuit? Are you wondering how you got here and what to do now? Debt collection lawsuits can be frightening. This is especially true if you aren’t aware that your debt was handed over to a debt collection agency. To know how to respond, let’s take a look at what MCM is, what your options are, and what might happen if you lose the lawsuit.

What Is Midland Credit Management?

Midland Credit Management is like many other debt buyers and collection agencies. Their business model is to buy delinquent debt accounts from primary creditors. They then work on collecting on that debt from the individual borrowers. There are a few different ways they go about collecting on the debt they have acquired. Typically, they initially contact the borrower daily, reminding them of the debt and attempting to get a payment that way. Then, they may move on to sending notices of intent to file. Finally, if no resolution has been made, they may file a lawsuit. If you are facing a Midland Credit Management lawsuit, you may be wondering what your options are.

Why Is Midland Credit Management Suing Me?

In short, a Midland Credit Management lawsuit typically comes from a lack of payment on the debt that you owe. If you continue to keep up with your normal debt payments, they would not have a case or a reason to sue you. However, if you are not keeping up with your debt payments, then it is likely that Midland Credit Management will begin trying to collect on your delinquent debt. This process tends to end in a lawsuit if no attempt to make payments on the account is made. 

Why Does Midland Credit Management Even Have My Debt Information?

You may be wondering why Midland Credit Management even has your debt information when you owed money to a different institute entirely. The answer lies in what Midland Credit Management is. MCM buys debt accounts and collects the money that comes in from payments. Typically, MCM buys delinquent accounts and use collection practices to get payments. This is the most likely reason that MCM has your debt account instead of your original creditor. 

What Can Come Out of a Midland Credit Management Lawsuit? 

One of the scariest parts of a debt collection lawsuit is not knowing what might happen once the lawsuit is done. Here are a few of the things that can come out of a Midland Credit Management Lawsuit:

Garnished Wages

This is one of the most common and most likely outcomes of a debt collection lawsuit. Most of the time, the individual that has fallen behind on their payments does not have the cash reserve to pay back their debt immediately. Because of this, many creditors will ask the court to grant them a wage garnishment. A wage garnishment simply means that, every time you get paid, a portion of the money that you make will be withheld from your check and will be sent directly to your creditor. This will continue until the entirety of the debt is paid off. Once the debt has been repaid, the garnishment will end, assuming there are no other garnishments or owed accounts. 

Liens On Your Property

If you have property or other assets that represent a significant dollar amount, there is a potential that your creditor will request a lien against that possession. When a lien is placed on your property, this means it is available to be sold in an attempt to pay off what you owe. If you have a lien on your property (whether that is your car, house, etc.) then you are not legally allowed to sell that piece of property without consulting the individual who the lien has been granted to. 

Bank Account Freezes

Midland Credit Management may request that the court orders your bank account to be frozen. This means that you will not have access to the money that is in your account. Typically, if a bank account freeze is granted, then any account that has your name and social security number tied to it will be frozen. Sometimes, you might have limited access to the account, such as the ability to make deposits or check the account status. However, you will not be able to make withdraws, any companies that directly pull money for payments will be blocked, and checks from the accounts will bounce. 

Involuntary Bankruptcy

Sometimes, if the creditor knows that you have the means to pay back your debt (or at least the assets that could cover your debt), there is a chance that involuntary bankruptcy may be requested. For an individual, the only bankruptcy you can be forced to file is Chapter 7.  Chapter 7 bankruptcy is often called liquidation bankruptcy. In Chapter 7 bankruptcy, an individual’s assets are liquated in an effort to repay owed debt. MCM can request this be the outcome of the lawsuit, though this is one of the rarest outcomes of a debt collection lawsuit.

Ruined Credit Score

Regardless of what the monetary outcome of the lawsuit is, it is almost guaranteed that your credit score will see a drastic impact. One of the biggest things that impacts your credit score is your timeliness with payments. If you are at the point where you are being sued for your debt, it is likely that you have missed many scheduled payments. This alone is enough for your credit score to take a hit. On top of that, many of the possible outcomes of a debt collection lawsuit affect your financial situation. These can further impact your credit score. While this is definitely something you can recover from, be aware that your credit score will likely suffer after your debt collection lawsuit.

How Can I Respond to Midland Credit Management?

So what can you do if you have a lawsuit pending from Midland Credit Management? Well, you have a few options. One of the most important things to remember, however, is that it is always best to respond in some way. If you ignore a debt collection lawsuit it will not go away. There are some scenarios where ignoring a notice or request for payment might be advisable, but a debt collection lawsuit is not one of those scenarios.

If you ignore the lawsuit, it is most likely that the court will make an automatic judgement against you. This means that the court will make a decision in your case without any input from you. This also means the case won’t need to go to court. At the very least, you need to respond to the notice and decide how you want to continue. Here are just a few of the most common options: 

Challenge the Lawsuit

If you have a reason to believe that the lawsuit notice you received contains incorrect information (either wrong amount, wrong person, etc.), then you should challenge the validity of the case. You can do this when you send in your answer to the court. 

Request Documentation of Proof

Because Midland Credit Management is a debt collection agency, they were not the primary originator of the debt itself. For a lawsuit to be valid, the agency must be able to prove the following

-They own the debt

-You owe the debt

-In possession of the original credit agreement signed by the individual

-Chain of custody of the debt account

If they are unable to prove any of these things, then the case will likely be dismissed. 

Consider Suggesting Alternatives

Oftentimes, the goal of the debt collector is simply to recoup as much money as they can. They want to expend the least amount of effort or expense. Because of this, going through with a trial is likely not a debt collector’s first choice in course of action. It is likely that Midland Credit Management will be open to another debt repayment option. This can include debt settlement, a debt repayment plan, or even a temporary break in payment before resuming normal payments. Whatever you are able to do, consider reaching out to Midland Credit Management and offering an alternative to going to trial. It may be intriguing enough for MCM to consider and can save you time, money, and headache. 

Hire An Attorney

If you believe you do not have any of the above options available to you, but you still want to fight the lawsuit, consider hiring an attorney. While not required, an attorney can help you fully understand the scope of the lawsuit. They can make sure you know what is happening and what effects you will have. If you are accepting the fact that the case will go to court, hiring an attorney can help protect you from exorbitant judgements. 

Get In Touch

Regardless of how you decide to respond, know that you have options available to you when you receive a Midland Credit Management lawsuit. If you are not sure what the best option is, consider giving us a call! At Ascend, we’ve made it our mission to make sure that everyone has unbiased financial information. This can help you make informed decisions based on your specific situation. If you would like to talk through your options, we are available to talk!

Post Author: LincolnE

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