An Unifund lawsuit is a tactic that is being used more by debt defense attorney. It is a contingency-based lawsuit in which the plaintiff (the person who is suing) pays the defendant (the party sued) only if they win the lawsuit. The plaintiff is protected by this type of lawsuit because the defendant does not have to worry about paying anything if they lose. This type of lawsuit is very successful for most people because it puts the burden of proof directly on the debtor. Therefore, it is usually easier to settle an account with a debt defense attorney because it is a much simpler process to prove their debt is unsecured.
Unifund Lawsuit
First, what is an Unifund? An Unifund is simply a lawsuit where the plaintiff and the debt collector don’t have to pay anything if the case is lost. There are two main ways this works. If the debt collector’s complaint states that the debtor owes them money and they can get this money through legal means then the Unifund will hold up the collection efforts. However, if the account is in collections the lawsuit must take place.
This means that the original debt collector is now the defendant in an Unifund.
It is important to note that the original plaintiff does not go away because the original lawsuit still exists. It only stops when the original plaintiff either pays the debt or stops contacting them. Once the original plaintiff has stopped communicating with the debt collector the lawsuit will continue. In addition to the original plaintiff there is now another person who can sue the defendant.
Some of the benefits to these types of lawsuits are that they can be very easily won.
This is due to the fact that states do not require that debt collectors provide any evidence that a person owes a particular debt. This means that insurance companies can sue for punitive damages and not have to worry about proving the case beyond a reasonable doubt. While this may make the unified lawsuit favored by many attorneys, it does not benefit all of them because some of them could end up paying the original creditors for their part in the collection process.
On the other hand some attorneys do benefit from these types of lawsuits because it is a great way to collect on outstanding debts.
These individuals are usually the ones who are doing the collection efforts. These individuals will usually try to get their money from the best debt buyers possible. This means that they will try to acquire the full amount rather than simply settling for a percentage of the original outstanding balance.
If you think that you may be a victim of Unifund lawsuit then you should contact a good debt defense attorney who has experience in getting sued for these types of actions. An experienced attorney will be able to evaluate your situation and determine if you should proceed with a lawsuit. A good lawyer will help you get a free case review so you know whether or not you may proceed.
