Debt Collection Suits in Colorado Dramatically Increase

Residents of the Denver metro area and in other areas of Colorado contemplating filing for chapter 7 or chapter 13 bankruptcy as a result of too much debt should be aware that Colorado courts and most courts nationwide have experienced a dramatic increase in lawsuits filed by debt collection companies over the past 12 months.

Due to ever increasing volume and defaults (particularly with credit cards), many debt collectors now use computer programs which automatically generate documents, such as a complaint and summons, without human oversight. As a result, many cases are not being properly filed and state incorrect amounts of debt owed. Because most state court civil collection suits in Colorado result in a default judgment (whereby the debtor fails to appear in court to litigate the matter), debtors are believed to be sued for debts they do not owe, which may expedite the bankruptcy process.

This is yet another example as to how creditor abuses are becoming more widespread. As such, I highly recommend that you immediately respond to any law suit immediately by hiring a experienced Denver bankruptcy lawyer, particularly if you believe that the debt collector has targeted you unfairly or if they have used illegal or abusive methods of collection.