The Proper Proof of Debt When Being Sued
When debts are not collected before the statute of limitations expires, creditors may seek legal recourse. In a court proceeding, if the debtor does not agree to the debt, there must be proof of debt provided.
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Signed Contract
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The original signed agreement between the creditor and the debtor is the most definitive proof of debt the creditor can produce. The only recourse a debtor could have is to provide evidence that his signature is not on the document.
Account Statements
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Credit card statements often list purchases made on the credit card until they are paid off. A statement can show that there was evidence for months on end that the debtor knew a particular item or set of items were due for payment. For the creditor, this also shows the debtor had ample time to dispute the bill.
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Collection Agreement
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If a collection agency tries to sue a debtor in court, the debtor can argue that the collection company does not have the right to pursue the debt in such a way. The collection company would have to produce a contract agreement between the collection agency and the original creditor proving the collection agency owns the debt, not just the right to collect it.
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References
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