How Do I Validate the Debt Midland Funding is Suing Me Over?


Dear Steve,

I am being sued by midland funding. I hoped to settle with them, but was unsuccessful and have been given a hearing date. My hearing is being via teleconference because of the current global situation. My Court hearing is in about 30 days.

How do I handle this? How do I know if this company actually owns the debt? Can I ask the court for proof that Midland Funding actually owns my debt?



Dear Michael,

This is an issue that must have been brewing for a long period of time. Debt doesn’t go from delinquent for a day to court. Clearly, this has been a festering situation. And since I’m a huge fan of never wasting a perfectly good mistake, this situation can be a great teachable moment on what not to do in the future.

I am not a lawyer. For legal advice, you must talk to an attorney that is licensed to practice law in your state.

The best time to raise the issue if a debt is valid is when you are first contacted by a debt collector that makes a claim you disagree with. The Consumer Financial Protection Bureau provides advice on how to do this.

The process is relatively easy to do but it is time-limited from the moment you receive that first notice or contact from the debt collector.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

The situation you describe has proceeded past that point and you are now being sued by Midland Funding.

This adds a new level of disadvantage and complexity since there are rules of the court that you now need to comply with. You just are not experienced in these issues. Midland Funding attorneys have the upper hand now.

And while you can certainly raise the issue that you don’t think the debt is valid at court, what are the rules Midland Funding has to follow to satisfy the court it is real?

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To raise the most comprehensive defense, which might include consideration for issues like the Statute of Limitations or validation, there is absolutely no substitute for the assistance of a competent attorney that is licensed in your state. One place to find such an attorney is here.

You should be aware that if Midland wins the case against you in court there is still a second chance to settle the debt afterward unless they garnish your wages or true to levy assets.

The settlement might not be as good as what could have been obtained previously but some agreement may be possible. However, you will have that public record of being sued and losing.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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