Why is it so important to get a dismissal with prejudice in an Alabama debt collection lawsuit?
When the case is dismissed, there are two options:
- Dismissal without prejudice
- Dismissal with prejudice
What is the difference and why does it matter?
Without prejudice means it is as if the lawsuit was never filed. The collector can sue you again.
They may serve and there is an issue and they can’t get you served so they may want to simply drop the case.
They must still follow the statute of limitations and all applicable rules.
When the case is dismissed with prejudice, this means it is over.
This is final.
It is like winning.
They can never sue you again for this debt. They cannot turn around and sell the debt.
They know if they do it is a violation of the law.
Because if you do not owe the debt, because you won your case with a dismissal with prejudice, then what does the collector have to sue you for? Nothing. No reason. It would violate the FDCPA (Fair Debt Collection Practices Act). It also will likely mean you have false credit reporting.
It is vital when settling with a debt collector, however you settle, to do so with prejudice so they can never bother you again.
After a dismissal with prejudice, I would consider disputing any credit reporting on the account.
The case is over. You won.
So if Midland Funding or LVNV Funding or some other debt buyer is still reporting the debt, after the dismissal with prejudice, then consider sending a dispute to the credit reporting agencies. This includes Equifax, Experian, and TransUnion.
Explain you got sued, you got the case dismissed with prejudice, and you want this off of your reports.
If they don’t delete, then investigate to see if you have a claim under the FCRA (Fair Credit Reporting Act).
We hope this is helpful to you!
If you live in Alabama and you have any questions, feel free to get in touch with us.
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