Settle credit card debt » Debtor

Civil Summons For Credit Card Debt? Don’t Make These Mistakes!

admin — Tue, 13 Jul 2010 00:30:23 +0000

Observations on the Most Common MISTAKES Consumers Make When Faced with a Credit Card Debt Lawsuit

1. Consumers ignore notices for Court.

Never, ever ignore a notice from the court. If you suspect it’s a fake (some FDCPA Violators a.k.a. “junk debt buyers” have been caught sending out fake documents that resemble a summons) please call your local courthouse and ask them for verification. A court clerk generally answers the phone and can search by case number or by your name.

The creditor is counting on you either not receiving the notice or not responding to it thus granting them a a default judgment. A default judgment means they WIN and can now garnish your wages and freeze your assets. You may not even receive of the judgment until a wage garnishment attachment is in place.

2. Consumers fail to respond to summons.

Many consumers feel guilty about their debt(s) and fail to respond to the summons within the time-frame indicated. Even if your debt is valid, within SOL and you want to settle, YOU STILL NEED TO RESPOND TO THE SUMMONS WITH AN ANSWER within the time-frame granted (from the date of service) which is usually 20 to 30 days.

I’ve seen too many cases where the consumer works out a deal directly with the debt collector (Plaintiff) and never responds to the court placing that responsibility on the Plaintiff. Guess what? Plaintiff never withdraws their suit and now they have a default judgment in addition to whatever monies they’ve already collected from the debtor.

3. The following practice by debt collectors seem to be an increasingly common (and sleazy) occurrence. The debt collector may sue a consumer is Court. Instead of using the Sheriff to serve the summons, the collector likely will opt to use a special process server. (This is what happened to me!)

The consumer never receives the summons because of improper service (summons was left in an obscure location on the property, with a neighbor, etc.) thus the consumer never answers the complaint, and the debt collectors win a default judgment. BUT, the debt collector sits on the judgment and waits two to three years before executing on it…usually by a surprise wage attachment. The first the consumer ever knows of the suit or judgment is when their wages are garnished. The consumer will have a hard time trying to get the Court to vacate the judgment after two or three years. And the wage garnishment will stand.

This is another excellent reason to sign up for credit monitoring so you will know immediately if something like this has happened. Additionally, many district courts have websites where you can search for your name, not a bad idea to do on a monthly basis if you suspect a collector will be filing a suit against you.

4. When served with a summons (if you are even served), immediately contact an attorney. If you can’t afford an attorney, you can file Pro Se, which means you represent yourself. But by all means, file the answer within the 20 to 30 days indicated! You may qualify for legal aid AND there are resources out there to help you draft your documents, check my links for referrals.

I recommend sending a Notice Of Appearance (this instructs the Court that you are an active participant in the lawsuit and that you should be informed of all communication at a designated address.)

You need to file the Answer to Complaint, Affirmative Defenses document which answers their numbered allegations with an Affirm, Deny, or Lack the Knowledge to Answer type of statment. On the same document you then go on to assert common defenses to credit card debt lawsuits such as out-of-statute, statute of frauds, etc.

You also need to send a Certificate of Service that proves you mailed your Answer documents to the Plaintiff as well as filed them with the court. AND, I highly recommend you send a Cease & Desist Letter to the Plaintiff (read my post about How To Intimidate Debt Collectors for a great tip to use w/ this letter!) that instructs them to only contact you via written correspondence and bars them from contacting your employer, friends, relatives and neighbors.

You should also consider initiating “Discovery” by serving them with a Request for Production of Documents. Basically, you want to put them on notice that you are aware of your rights, are not going to roll over and accept a default and MAKE THEM PROVE THEIR CASE!

It’s well known that third-party debt collectors often only have an affidavit of debt to go off of. If you don’t request any documentation that is enough for them to win or obtain a judgment. However, if you request documentation they must furnish it at a hearing. If they can’t, you win!

For more information about how to fight a credit card debt lawsuit or to purchase my Word & PDF Fill-in-the-Blank templates for Notice of Appearance, Answer, Discovery, and more please visit ihavebeenserved.info.

You have nothing to lose by fighting these predatory debt collectors and everything to gain!

By: Jay M Johnson

Yes! You Can Negotiate Your Credit Card Debt

admin — Sat, 15 May 2010 15:22:39 +0000

There are many things that people fear and out of control credit card debt is not something that always comes first to someone’s mind when they think about the worst financial hardship that could happen. But, when it does happen to someone, it can feel as though it is the worst thing ever and that they are buried so far that they will never see any light. But this does not have to be true as there are many ways to go about fixing the problem including debt negotiation. What credit card debt negotiation does is take the debt you owe and either reduces the total amount that you owe or find a way to make it easier to pay it off.

Generally, when a credit account hits a collection agency, there is more room to work a debt negotiation plan. This means that if you owe a total of four thousand dollars, they may be willing to take a lump sum payment of two thousand dollars and call the debt paid off. This helps the company in that they are finally receiving money from the debtor and the debtor is helped by the reduced amount of debt. Credit card debt negotiation plans are often a win-win situation for both parties involved. And while it is true that there will be a small mark on your credit for paying less then the total due, the affect is much less then leaving the debt sit or filing bankruptcy.

What to Do

If you look at your card statement, you will see that your interest rate is listed on there in a spot that is easy to find. If your rate is over 10% then you have something you can use for negotiating credit card debt. These are arbitrary numbers set by the credit card company and you can use them when you are negotiating debt. As long as you always pay your principle you are fine. I had a friend that would call his credit card companies once a year and tell them that if they didn’t lower their interest rates he was paying the card off in full and canceling it. More often than not the rates got lowered. This also affects your monthly payment and can help you control your monthly debt.

The best and generally the cheapest way to go about tackling debt negotiation is to call each of your creditors yourself and explain your hardship. While not every single credit card company or collection agency will be able and willing to accept a deal, there is a good chance that one or even a few of those on your list that you owe will be willing to work with you. Even though you would love to see every creditor on your list cut your debt in half, the fact is, even if one or two were able to slice your debt in half, you will have been successful in your credit card debt negotiation.

If you are feeling that you are not outgoing enough or maybe you are just simply too scared or shy to contact your creditors, you may need the assistance of someone else. There are agencies that are dedicated in helping you with credit card debt negotiation and since it is their job, they may know a few tricks that you do not and this could make all the difference in getting it done. It never hurts to call in some professional help but try to stay away from those who want to charge you excessive fees for their assistance because successful credit card debt negotiation cannot be promised although the success rate for skilled negotiators is extremely high.

By: John Stevenson

Debtors, Creditors, and Debt Explained

admin — Tue, 27 Apr 2010 04:14:10 +0000

Reading through most financial institutions and lending company disclosures can be confusing. They throw a significant amount of legal terminology and often label specific individuals and groups of individuals by names such as debtor and creditor. This can make it confusing since there are so many different definitions.

These terms however are not difficult to understand and often when you understand these terms, what they mean and how they apply to the disclosure it can make it easier to read disclosures and understand your rights as a person who is obtaining credit and incurring a debt. There are a number of rights and responsibilities that people who are given the classification of debtor for the purposes of the agreement. The term or label of debtors tends to send up negative connotations in many people’s minds because of the stigma that is placed on the term debt.

Debt in and of itself and being a debtor in and of itself is not a bad thing. It simply means that a debt has been taken out and the debtor is the person who has taken this debt out. More often because of these negative connotations, you may find debtor inner changed with lendee, in other words the person to whom money was lent. Alternatively, with credit cards you may see it interchanged with the term cardholder or applicant in some cases. In most cases, however the term debtor is usually replaced with borrower. All of these terms can be used interchangeably based on what type of document or disclosure is being used.

A creditor is slightly easier to understand in any of its forms. A creditor is a lender, a credit card provider or financial institution when it comes to lending out money and providing line of credit. A creditor can also refer to a company who is attempting to collect a debt. This can be the original lender or it can be used to refer to a collection agency, which is in charge of collecting a debt. In some cases, a creditor may be a lawyer’s office or a separate company. There are a number of different types where you will find the term creditor.

As with the term debtor, there are a number of negative connotations and reflections that are made when people hear the term creditor because it is so often used as a way to describe those who collect debts. Normally, you would have only minimal interactions with your creditors and this contact usually exists simply in the form of bill and payment. It is only when debts become overwhelming that the word creditor becomes something to avoid and the word alone because of the negative connotations attached to it, cause a great deal of stress and anxiety for people who are having difficulty with their debt. It associated with a stereotype of calls that are received when people are having difficulty making payments. However, the term creditor covers a much broader base than this.

Debt, it covers a wide range of different expenses. It primarily refers to credit purchases that are paid off over an extended period of time. For example, credit cards, mortgages, car loans, even leases can be considered debt. The biggest category of debt that is going to create problems for people is going to be credit card debt. The reason for this is that this type of debt has not only a variable interest rate but also one that can increase rapidly and quickly create a difficult situation.

Debt however if managed correctly can provide you with a number of benefits. Being debt free is often considered to be an ideal situation however there are disadvantages to this. Everyone considers debt to be a bad thing; this is because it so often becomes something that creates stress, anxiety and financial difficulties. However, debt in and of itself is not a bad thing. In fact, it can be quite useful provided that it is not allowed to take over your finances. Many organizations at credit history, the way you managed your debt before they lease an apartment or approve you for a loan.

This is because it shows a viable record that you made payments on a debt in a timely fashion. There is no way to measure this without debt and so in these situation you may end up having issues obtaining the approval you need because of a lack of history to prove that you have paid off credit cards and other forms of debt promptly and in a responsible manner. Debt can be something that overwhelms you or something that provides you with the means to lease a home or apartment purchase a car or obtain a personal loan. Many people when they first start out working with credit based purchasing do not realize the danger of credit card debt. They also do not realize how quickly credit card debt can get out of hand. It is important to ensure that debt is managed carefully in order to not allow it to get out of control. Once debt reaches the point where it overwhelms you, financially it can be difficult to get back under control and it has far-reaching effects. Many negatives stay on your credit report for years in some cases it can be more than a decade before a negative mark is removed from your credit and even more time before your credit score recovers.

This is why it is important to make sure that you know what your rights are, what debtor, creditor and what debt is. These definitions and the various replacements for them such as borrower, lender and so forth are necessary in order to ensure that you know exactly what is written in the terms and agreements that you sign when you take out a loan or credit card. This is the first step to ensuring that you make the right decisions when it comes to the types of debt and types of lenders that you borrow from.

By: John Mazzara

Debt Settlement Facts and Benefits

admin — Mon, 12 Apr 2010 01:02:28 +0000

Even if you are watchful of your budget, things do happen. Particularly tragic to a household budget is a large, sudden debt, or the loss of income which may hinder your ability to repay.

Debt negotiators may be able to help you come to equitable settlements for your debts.

Professional debt negotiators can work with your creditors to explain the situation and to negotiate on your behalf. Even if your creditors refuse to offer a repayment plan that suits you, don’t jump to the ‘bankruptcy’ mind set. Recent federal laws now require credit counseling before proceeding into bankruptcy. But there are also federal laws to help protect you from unscrupulous collection agencies.

The primary reason creditors may accept a settlement is because it is cost effective for the creditor. The degree of the discount (how much they will forgive) will vary case-by-case; therefore, a creditor will take into account many factors when determining their bottom line on accepting a settlement.

They calculate the probability of recouping the debt; either by a collection agency or via legal action, versus the amount of a settlement offer.

Before they agree to any settlement, they will often consider your income, state of residence, age of the debt, type of debt, and your assets.

Professional negotiators will appeal to your creditors that it is in their best interest to settle the debt.

Major difference between Debt Management and Debt Settlement

Debt Management

In a debt consolidation program, also known as a Debt Management Plan (DMP), the debtor pays back 100% of their debt plus interest. Interest is commonly reduced to the 8% to 10% range. Additionally, most Debt Management Companies have a monthly service fee tacked on to the monthly payment. Most people pay back about 130% of their debt over 5 to 6 year period. Debt Management has a moderate affect on a good credit file and will improve most poor credit files. But, a Certified Debt Arbitrator is qualified to explain both programs to you and will be able to provide you the differences in monthly payments as well as the pros and cons of each program.

Debt Settlement

In a Debt Settlement program, most clients pay back an average of 54% of their total debt, including all agency fees as well as accruing fees and interest. This 54% figure is based on the client’s starting balances.

Debt Settlement has a major impact on good credit but will improve credit for people that are 6 months or more past due. This improvement in credit profile is caused by bringing outstanding balances down to a ZERO balance.

Is debt settlement right for you?

Some consumers get so deep into debt, that bankruptcy seems their only way out before debt takes over their lives. Unlike bankruptcy, debt settlement is a far simpler process in comparison, and has less of a ’stigma’ attached to it.

By: Toni Phelps

Help, I Am Being Sued by a Bill Collector!

admin — Thu, 01 Apr 2010 20:17:20 +0000

If I had a dime for every time a bill collector from a collection agency threatened someone in debt with a lawsuit and actually followed through on it, I would probably be an extremely poor man. It’s rare for a collection agency to sue people but it is more common for the bill collector to threaten legal action.

However, you should be aware that when you borrow money as a loan or on a credit card you are in an agreement. Creditors use carefully worded contracts so they do not lose their money if you default in your payments. Understand that anytime you are in breach of a contractual arrangement, you are exposing yourself to a lawsuit.

It’s because of this fact that bill collectors use their seemingly endless supply of one liner’s that end with threats of “legal action”.

Below are some reasons why the threat is rarely followed by action:

Suing someone takes time, financial & human resources.

Despite that bill collector going on about being in debt and suing you for being a bad person, it’s rarely an emotional decision to sue and more of a business one. Throwing good money after bad in hopes a lawsuit will collect a debt is a colossal waste, if you know you can never do anything with a judgement once you get it.

Supporting documents are required for a lawsuit.

There are situations where actual proof that the debtor owes the debt is somehow unavailable. A judge needs to hang his hat on something when issuing a judgment to a creditor against a debtor, and they want to see proof the debt is owed.

The statute of limitations.

This is a law in place that defines the period within which legal action may be taken. This time frame varies depending on your laws so you would need to check with a licensed professional in your area.

It’s far more cost effective for a collection agency to threaten legal action rather then actually spend the human resources, time and money at actually doing it. That’s why practically everyone dealing with bill collectors is threatened with a lawsuit at some point in the collection cycle. Collection agencies are masters of empty threats.

Now, don’t rest too easy, there are situations where the threat of a lawsuit may be very real. You have to be alert to two points in the collection cycle. The original creditor and the debt buyers.

The collection cycle usually follows this order: Original Creditor –> Collection Agency –> Debt Buyers.

Some original creditors can be litigious. What that means is they are inclined to sue you if they know you have the means to pay the debt and/or you own a home with equity. They may decide to hire a law firm to sue you to secure the debt with a judgement rather then assigning the debt to a collection agency to harass you.

The collection agency is usually (but not always, some creditors skip this step) the second step. The agency is a paid a commission usually ranging from 10-25% of what is collected for the original creditor.

The debt buyers are often the last collection step. It’s usually some form of a collection agency that buys debt for a few pennies on the dollar. Because the debt buyer owns the debt, they can do what ever they want with it. I have seen some debt buyers just blindly sue people when there are no assets to satisfy a judgement. It’s a really bad business decision but it does happen sometimes. Others won’t even spend the time or money, it depends on company policy.

A debt assigned to a collection agency on the other hand is a different story. I would estimate that your chances of actually being sued by a collection agency that has been assigned a debt for collection, is about as good as being struck by a bolt of lightening on relatively clear day. However, it is also fair to say that if you are behind in your payments and owe debt then your chance of being threatened with a lawsuit by bill collectors is nearly as certain as death and taxes.

Debt is tough to deal with; there is no easy way out of it. Seek help if you need it, debt settlement is one of the best alternatives for people dealing with collection agencies because it is fast, effective and has little to no further impact on your credit rating.

By: Richard G Cooper

Tips to Stay Out of Debt – Good Debt Vs Bad Debt

admin — Tue, 16 Mar 2010 10:05:40 +0000

Let’s face it, everybody has been in debt at some time or other in their lives. Most people view debt as a bad thing. But, not all debts are bad, there is a distinction between bad debt and good debt. What is the difference?

Well, a good debt is an investment debt that creates value in the future. For example, a student loan is a good debt because you’re investing in education for your future. Another example: mortgage loan. When you take up a mortgage loan at the right time, you’re owning a home that is likely to increase in value.

On the other hand, a bad debt is a loan you take to buy something that is decreasing in value. For example, taking a loan to buy a brand new car will create a bad debt immediately. Because a car will depreciate in value the moment you drive it out on the road. If you really need a car to survive, buy a used car instead. Why buy a beand new one? Unless of course if you’ve extra cash to spend and are free of debt. There are many examples how a person can get into bad debt. Overspending on credit cards, being a shopaholic, extravagant lifestyle, poor budget planning, losing a job, etc..

Actually, there is no such thing as bad debt but rather bad debtor. As you can see from some of the examples above, it’s an individual’s knowledge and attitude that will determine whether he or she would stay out of debt or become a bad debtor. Take the right loan, it can actually help you create wealth; take a wrong loan, you will end up being a bad debtor.

Here are some simple but practical tips to help you stay out of debt.

o Practice some economy in your life. Meaning that set a spending budget based on your financial ability, use your common sense and then stick to it.

o Learn to keep track of your spending. Don’t leave it till the next day or end of the week. Instead, keep track of how much you are spending each time you buy something. Keeping a tally of what you spend will make it less likely for you to spend on stuffs that you don’t need.

o If you can’t resist from using your credit cards, don’t carry them in your wallet. Credit cards can be advantageous if you use them responsibly. Because there are companies that offer up to 50 days interest free on purchases. But, if you don’t have a habit to pay your outstanding balance on time, forget about using a credit card as you would most likely fall into a bad debt trap.

o If you have any spare cash lying around, don’t go and spend it on a new dress, or on an expensive dinner. Put it to better use. And if you have debt, use it to pay off your debt. Know your priority.

Staying out of debt just needs some common sense. Hope you find the tips useful. See below for more tips and info.

By: Yvonne Suzannah

Settle Unsecured Debt ASAP

admin — Sun, 14 Feb 2010 06:57:11 +0000

It is true creditors can claim much of the unsettled debt as a loss and still not take a big hurting, but in these times of recession every penny they collect from their debtors is better than none at all. Usually a creditor will charge off an account about 180 days delinquency, this means the account will be forwarded to a collection agency or sold to a junk debt buyer. Once this happens settlement percentages will change, some for the best some for the worst.

Collection agencies and junk debt buyers are now more and more buying old debt from creditors. In the past they would serve as a third party collecting on the creditors behalf and earn a percentage on the money collected from the debtor, some collection agencies and creditors still handle business in such a fashion. Others now buy the debt directly from the creditors for pennies on the dollar and claim they cannot settle the debt for less than 80 or 70%, thus making a tremendous profit for their efforts. Some of the junk debt buyers, who also buy old debt for pennies on the dollar and hire debt collection lawyers for their collection process. There are ways to get better deals from these companies, but one must know what to do to achieve them.

Some accounts depending on the creditor believe it or not are better off going to collection agencies for better settlements. There are a handful of creditors that under no circumstances will negotiate a reduction on debt owed. In this case a negotiations professional can inform you as to which accounts to negotiate with the original creditor and which ones to negotiate with a collections agency.

The debt settlement industry is forever changing, dictated by the decisions taken in the credit card company board rooms everyday. Debt negotiators are aware of these changes as their job is to speak to these very companies everyday. No debt settlement service can exactly estimate how much money anyone can save by negotiating on their debt for the same exact reasons I just mentioned, the best way to know this is to engage in negotiations. Once a negotiation is underway your debt settlement negotiator will have a better idea of the probable savings .

One fact is true the more active a person is in pursuing agreements with their creditors or collectors the sooner all the debt will be settled. Hiding for the most part will do no good as interest rates, penalties and late fees will continue to accumulate. All creditors, collection agencies and junk debt buyers will factor in this added charges when collecting on the unpaid accounts.

Therefore it is extremely important to remain proactive in the pursuit of arrangements to eliminate all debt. One of the most important decisions is to find the professional help which will help you do it as fast and as efficiently as possible.

By: Dan Delgado

Credit Card Debt Negotiation – Easy Ways to Negotiate Debt Settlement

admin — Wed, 29 Apr 2009 00:18:02 +0000

One way of getting out from under all of your credit card debt is through credit card debt negotiation. In this process, you can contact your debtor and get them to settle your debt for a fraction of what you owe.

Though this will hurt your credit rating, it is a far better option than not paying at all or declaring bankruptcy. Those two options will make it very hard for you to get decent rates on future loans and make it hard for you to get a loan period.

Credit card debt negotiation is a very delicate process, involving a bit of give and take from both sides. You don’t have the money to continue making payments over the long term, but the credit card company wants their money back.

The truth is, credit card companies would rather have you pay something and sever the relationship, rather than keep your debt with them, dragging things out with no intention of paying. They don’t want to pay collection agencies to track you down; they would rather just cut their losses.

Many times it can help to employ the services of a debt settlement company through a debt negotiation program, but sometimes you can negotiate with creditors yourself and find positive solutions. If the debt negotiation is successful, it will save you not only money due to reduction in APR but also the hassle that is associated with looking for a new credit card to transfer balance.

If you are negotiating credit card debt by yourself the first thing that you need to do is find a proper mailing address for your credit card company to send all correspondence to. Don’t use the address on your bill, as that is for payment only. Once you have an address that is where you should send all correspondence regarding your negotiations.

Make sure you use registered mail with receipt. This paper trail forces the debtor to honor anything you can verify with mail, as opposed to phone calls, which mean nothing in court, should it come to that.

Also, it is imperative that you stay calm and conduct yourself with professionalism during credit card debt negotiation. Your debtor may try to verbally bully you, but don’t fall for any of the old tricks. Simply express your desire to settle your debt, no more, no less. Don’t include any personal information, such as why you want to settle, as that will likely get you denied.

In the end, you simply need to realize that although you got yourself in this situation for whatever reason, there is a way out. Systems have been put in place for situations such as yours; you just need to avail yourself of them. Regardless, it doesn’t hurt to call up your credit card company and ask, just make sure you follow up that call with registered mail.

By: Paul Sarwana

Served a Summons Or Credit Card Debt Lawsuit – Don’t Call the Creditor!

admin — Thu, 19 Mar 2009 18:08:17 +0000

I receive e-mails every week from people who have had the misfortune of receiving a summons notice on their doorstep or the joy of having a stranger sidle up to them and say, “You’ve been served.”

Not fun. Oftentimes, these same people tell me that the first thing they did was to pick up the phone, call the collection agent or collection attorney in many cases and try to work out a payment plan or settlement agreement. This is WRONG, WRONG, WRONG.

Once you have been served a summons, this means that the collection agency is SUING YOU. You are being sued and the collection agency is now the Plaintiff and you are the Defendant. Any and ALL communication with the Plaintiff should be done via written correspondence only.

It’s too late for “I’ll send you $50 buck a month, I promise.” Way too late. Now is the time to take responsibility for your financial future and face your fears (debt) head on. Even if the collector was to agree to a payment plan, they cannot be trusted. While you are “working it out” they could be in the process of putting a lien on your property and searching for your bank account information in order to seize your assets.

Here’s what you need to do. First of all, DO NOT BE INTIMIDATED. This is difficult, after all I’m sure you feel badly about the debt in the first place and it’s probably been haunting you for years. The sad truth is that many of these debt lawsuits are brought about on out-of-statute debt and the collection agencies and debt attorneys are notorious for re-aging the DOLA or Date of Last Activity on your credit report. It’s in your best interest to dig up any old credit reports and bank statements to prove the the date of the last payment you made on the defaulted account. If that date is past your state’s statute of limitations on open credit card debt, they have the right to try and collect, but they cannot sue you and must drop the lawsuit.

Additionally, very rarely is a debtor sued for the actual amount they owe…penalties, interest, and other assorted fees are generally tacked on to the balance. Make them prove their case!

There are many other defenses that can be raised against one of these collectors. The key is that you need to communicate with them through the court system. They don’t expect you to fight back, over 96% of debt lawsuits end in default judgment. The chances of them backing off and dropping the lawsuit are HUGE if you take the time to properly format what is called a Notice of Appearance, Answer, and Certificate of Service.

It takes some time and research to properly file these documents, but it’s your financial future at stake. A default judgment can not only freeze your bank account or garnish your wages but it will also ruin your credit for a minimum of 7 years. A few states offer basic templates for the forms you will need to file with the court, a simple Google search should offer up some resources. You can purchase Word templates (w/ affirmative defenses for third-party debt collectors) for the “Answer to Complaint” document and more at www.IHaveBeenServed.Info and alternatively there are very helpful people on several internet “debt” message boards who can offer up advice when drafting your own documents.

Additionally, you should fax and mail (certified, return receipt) a Cease & Desist Letter to the creditor informing them that they must communicate you with via written correspondence only and now that they know how to communicate with you they must refrain from contacting any of your neighbors, friends, relatives or employees in an attempt to collect their debt. If they violate your request, you can threaten to sue them for an infraction of the FDCPA (Fair Debt Collection Practices Act) which allows $1,000 for each violation.

Now is the time to action. If you do nothing, the creditors will find your assets and take them. Bottom line. File your Answer and other supporting documents and wait and see. The best that can happen? They won’t want to fight you in court and drop the lawsuit (they rarely have the supporting documentation to back up their claims) or you’ll receive a courtdate and you’ll be given the chance to work out a settlement agreement at that time. Either way you will have avoided a default judgement which is looked upon as poorly as bankruptcy in many cases.

Fight back! You have nothing to lose and everything to gain.

By: Jay M Johnson