I am getting SUED for more than I owe??

TL;DR

Debt collectors may sue you for more money than you owe due to court costs, attorney's fees, post-judgment interests, and other factors.

Transcript

• Do you have a debt collector contacting you and asking you for way more money than you actually owe, or worse yet, have you been sued by a debt collector and they're suing you for more money than you actually owe. In this video, we're going to talk about why that is and what you can do about it. My name is John Skiba, and I'm a consumer protectio... Read More

Key Insights

• 🥺 Debt collection lawsuits often result in default judgments, leading to additional costs, such as interest and attorney's fees.
• 💗 Post-judgment interests can cause debts to grow exponentially over time, resulting in higher amounts being sought by debt collectors.
• 😀 It is essential for individuals to take proactive steps, communicate with credit bureaus, and seek legal guidance when faced with discrepancies in debt amounts.
• ❓ Wrongful garnishment provisions exist in many states, offering individuals the opportunity to challenge improper or excessive garnishments.
• 👾 Building a game plan and seeking clarity and legal advice can help individuals navigate debt collection lawsuits more effectively.
• 🤱 It is crucial to be aware of the potential consequences and costs that can arise from unpaid debts, as even a small amount can accumulate significant interest and fees over time.
• 🤩 Communication and clarification are key in resolving discrepancies between garnished amounts and reported debts.

Questions & Answers

Q: Why would a debt collector ask for more money in a lawsuit than the original debt amount?

Debt collectors can add court costs, attorney's fees, and post-judgment interests to the original debt, resulting in a significantly higher total owed.

Q: Can post-judgment interest cause a debt to grow over time?

Yes, judgments can accumulate interest over time, particularly when default judgments are involved. This can lead to a larger sum owed than the original debt amount.

Q: What should I do if the amount being garnished from my wages is much higher than the debt shown on my credit report?

It is advisable to reach out to credit bureaus and the party responsible for the credit reporting to seek clarification on the difference in amounts. Additionally, consulting with a lawyer or the attorney handling the judgment can provide further insight.

Q: Are there any legal avenues to dispute the discrepancy in the amount being garnished compared to the debt reported on the credit report?

In cases where interest rates, fees, or costs have been wrongly applied, individuals may have grounds for a claim against the creditor through wrongful garnishment provisions. It is crucial to examine the details and consult with legal professionals.

Summary & Key Takeaways

• Attorneys John Skiba and John Watts discuss the issue of debt collectors suing individuals for amounts greater than their original debts.

• Debt judgments can accumulate additional costs over time, such as interest and attorney's fees, causing the total owed to increase significantly.

• It is important for individuals to take proactive steps when faced with debt collection lawsuits and communicate with credit bureaus and attorneys for clarity on discrepancies.