Thursday Night Live - Defending Debt Collection Lawsuits (2022) | Summary and Q&A

TL;DR

Consumer protection attorney John Skiba discusses debt collection, bankruptcy, and related legal issues in a live Q&A session.

Key Insights

• 🧑‍🤝‍🧑 The statute of limitations for debt collection varies by state and is triggered by the account's default date.
• 🥹 Debt buyers hold power due to the volume of lawsuits and individuals' failure to respond.
• 📁 Filing an answer in a debt collection lawsuit can provide leverage and potentially change the outcome.
• 🌥️ Bankruptcy may be a viable option for individuals with large debts, no job, and limited means to repay, but it should be carefully considered.
• ❓ Debt buyers typically notify consumers after purchasing the debt, offering an opportunity to verify the debt.
• 📏 Understanding the rules of civil procedure and adhering to them is important in navigating debt collection lawsuits.
• ✋ Wage garnishment can be stopped by challenging the judgment or filing for bankruptcy.

Transcript

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Questions & Answers

Q: What is the statute of limitations for debt collection? Does it start from the last payment or the beginning of the debt?

The statute of limitations for debt collection varies by state and generally starts from the time the account goes into default. Making a payment or affirming the debt can restart the statute of limitations.

Q: Can a wage garnishment be stopped by a creditor?

Wage garnishments typically occur after a judgment has been obtained. To stop a wage garnishment, one can challenge the judgment or consider bankruptcy, which immediately puts a stop to wage garnishment.

Q: Do debt buyers have power even without a signed contract?

Debt buyers assert power by claiming they have stepped into the shoes of the original creditor. Additionally, their power is amplified when people don't respond to lawsuits, allowing for default judgments.

Q: Should I settle credit card debt or file for bankruptcy if I have no job and am a full-time student?

The decision between settling debt or filing for bankruptcy depends on various factors. Bankruptcy may be a suitable option if you have no income, a large amount of debt, and no means to pay it off within the next five years.

Q: Do debt buyers need to notify the consumer when they buy the debt from the original creditor?

Debt buyers are required to notify the consumer when they have purchased the debt. They should provide an opportunity to verify the debt within a specific timeframe.

Summary & Key Takeaways

• John Skiba, a consumer protection attorney, hosts a weekly live Q&A session on the Consumer Warrior YouTube channel to discuss debt collection and bankruptcy topics.

• Statute of limitations for debt collection varies by state, typically starting from the time the account goes into default. Making a payment or affirming the debt can restart the statute of limitations.

• Debt buyers often have power due to unresponded lawsuits and the assumption of the original creditor's power. Filing an answer can provide more leverage and change the power dynamics in resolving debt collection cases.

• Filing for bankruptcy may be a suitable option for those with large debts, no job, or limited means to repay. However, the decision should be carefully considered, as there are consequences and alternatives to bankruptcy.