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What to Do If You've Been Sued by Razor Capital

Chloe Meltzer | March 11, 2024

Chloe Meltzer
Legal Expert
Chloe Meltzer, MA

Chloe Meltzer is an experienced content writer specializing in legal content creation. She holds a degree in English Literature from Arizona State University, complemented by a Master’s in Marketing from California Polytechnic State University-San Luis Obispo.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Fact-checked by Patrick Austin, J.D.

Patrick Austin
Attorney from George Mason
Patrick Austin, JD

Patrick Austin is a licensed attorney with a background in data privacy and information security law. Patrick received his law degree at George Mason University's Antonin Scalia Law School, where he served as the Editor-in-Chief for the National Security Law Journal.

Summary: Are you being sued by Razor Capital for a past due account? Find out how to make the right defense and win in court!

When you are past due on a debt, the original creditor eventually gives up on collecting the funds and sells your debt to a third-party debt collection agency. In many cases, this third-party collection agency is Razor Capital. Razor Capital then will bring a lawsuit against you. Whether you are confused or not sure how to respond, you must educate yourself to properly defend yourself.

The timeline of a Razor Capital lawsuit

Anytime you are being sued for debt by Razor Capital, you should understand what the process is like. The timeline will vary from person to person, but generally, the timeline is as follows:

  1. Notice of summons: You will receive a notice of either a phone call or letter regarding the debt collection lawsuit. This is at least 180 days past due.
  2. Debt validation letter: Within five days of contacting you, Razor Capital must send you a debt validation letter stating how much you owe, as well as the name of the creditor, and how to dispute the debt.
  3. Verification letter: If you do not owe the debt you can request a verification letter. This must be sent within 30 days.
  4. Response: If the debt is yours, then you will need to respond and negotiate a settlement or payment plan.
  5. Notice: If you don't repay or settle the debt, then you will be given a court date for when to appear regarding the debt lawsuit.
  6. Non-response: If you do not show up in court, then the court will rule in favor of the debt collector.
  7. Default judgment: This is when the court allows the debt collector to garnish your wages or place a lien against your property. They may even be able to take money directly from your bank account.

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Here's what to do if you've been sued by Razor Capital

Respond to the lawsuit

Regardless of if the debt is yours or not you will need to respond to the debt collection lawsuit. Do not admit fault, but respond to avoid a default judgment. If the debt collector obtains a default judgment then they can garnish your wages, put liens on your property, or even take money from your accounts directly.

If you disagree with anything that is being said in the debt collection lawsuit, then you will file a response to the lawsuit and be able to contest it. You can even ask the court to dismiss the lawsuit. In this case, you must bring documentation to show the following:

  • Who the creditor is
  • If the debt has been paid
  • If the amount is accurate
  • If the debt is past the statute of limitations

You can bring evidence if you feel your rights have been violated. Violations of the FDCPA are not tolerated and include the following:

  • Contacting a consumer at odd hours (outside the hours of 8 a.m. and 9 p.m.)
  • Harassment using profanity or threatening harm.
  • Threatening to take your property without the legal right to do so.
  • Contacting you once you are working with a lawyer.
  • Make fraudulent claims, such as misrepresenting who they are or saying you owe something different than what you do.

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Challenge the awsuit

Because debt collectors are third-party agencies hired by the original creditor, they usually have purchased your debt for pennies on the dollar. This means that you have the opportunity to challenge the lawsuit and see if they can prove it is yours. Reasons to challenge a lawsuit include:

  • Wrong person being sued
  • You already paid the debt
  • Debt amount is wrong
  • Statute of limitations has passed

Accept the judgment

In some cases, you may wish to accept the judgment and end the collection suit. There are various reasons why you may or may not accept a debt collection lawsuit. You may accept the judgment, but also want to settle out of court, or you may be considered “judgment proof.” This means that you have limited wages and so you will not be able to have your wages garnished. If your debt ends up being unmanageable, then you can eventually file for bankruptcy as a last result.

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Settle your debt with Razor Capital

If you owe debt then you can try to negotiate a settlement. This can allow you to at least obtain a lower price for your debt. This can also help you to avoid going to court, and sometimes the debt collector might rather this option.

If you do decide to settle, one tactic is to state that you plan to file for bankruptcy. Even if you do not plan to, it may push the creditor along and help you negotiate a settlement. This is because they know that if you file for bankruptcy, they lose all chance of getting paid.

Other options to look into:

  • Exempt Status: Depending on the state and how much you owe, if you have limited wages or assets then you can be exempt from wage garnishment. This means that you are judgment proof.
  • Filing for bankruptcy: If you are in a bad situation financially, filing for bankruptcy may be an option. If you file a Chapter 7 bankruptcy then all your debts will be forgiven. If you file a Chapter 13, then you can usually negotiate a lower amount to pay.

Regardless of what your decision might be, whatever you choose may follow you for the rest of your life. Be sure to weigh your options carefully, and make the decision that is right for your situation.

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