Legal Question in Credit and Debt Law in California
Legal to buy a lawsuit?
I received a debt collection letter from an attorney, BTW, the letter did not state that I had 30 days to dispute the claim which is required by Fed law I believe. Less than 30 days later the same attorney became Attorney of Record in the filing of a Complaint for Damages in Subrogation. In this filing the attorney admits that he bought the lawsuit from a thrid party. Can this attorney file a lawsuit against me for a case which he has no personal knowledge or involvement?
1 Answer from Attorneys
Re: Legal to buy a lawsuit?
Thanks for your posting.
Yes, it is legal for someone to "buy" a lawsuit, as you say, or in legalese, assign the rights to collect to someone else.
This is very common among collection agencies, who often will be assigned the entire right to collect. An attorney may also purchase an assignment to collect.
Since you are being sued, you should file an answer within 30 days or you may face a default judgment.
Thanks, and if you have other questions or want more information just call (toll free 1-877-568-2977) or email me and I'd be happy to help.