How to Successfully Handle a Debt Collection Lawsuit

TL;DR

To handle a debt collection lawsuit, first respond to the summons to avoid default judgment. You have options like settling the debt, disputing its validity, or filing for bankruptcy. Engaging an attorney can provide personalized guidance, but online resources and templates are available for those who cannot afford legal representation.

Transcript

hey everybody welcome to thursday night this is john skiba uh with the consumer warrior youtube channel i'm also an attorney in the state of arizona at the law firm of jackson white uh every thursday night we get together except for last thursday i missed you guys i had a scheduling conflict but uh we're back at it this week where we just discussed... Read More

Key Insights

• ❓ Hiring an attorney for debt-related issues is advised, but Skiba provides online tutorials and templates for those who cannot afford legal representation.
• ⌛ Filing for arbitration can be a beneficial strategy in debt-related disputes, potentially saving time and costs.
• 🥹 Original creditors may still hold ownership rights or collaborate with junk debt buyers in lawsuits.
• 😚 Losing a job during a Chapter 13 bankruptcy can result in adjustments to plan payments or a potential conversion to Chapter 7 bankruptcy.

Questions & Answers

Q: Is it recommended to settle a debt without hiring an attorney?

Skiba suggests considering settlement options if hiring an attorney would be too costly. He offers online templates and resources to guide individuals in negotiating settlements on their own.

Q: Is it advisable to file for arbitration before or after mediation?

Skiba recommends filing for arbitration before attending mediation, as mediation is focused on reaching a settlement. Filing for arbitration upfront can save time and avoid unnecessary negotiation expenses.

Q: Can the original creditor be a party in a lawsuit filed by a junk debt buyer?

While the original creditor is usually not a party to the lawsuit, sometimes they may retain ownership rights or collaborate with the junk debt buyer for a share of the proceeds.

Q: What happens if you lose your job during a Chapter 13 bankruptcy in Arizona?

If the loss of employment is temporary, you can request a moratorium on plan payments. If it is permanent, you may be eligible to convert the Chapter 13 case to a Chapter 7 case, or the case may be dismissed if you cannot continue making payments.

Summary & Key Takeaways

• Each Thursday night, attorney John Skiba from the law firm of Jackson White hosts a live Q&A session on YouTube to discuss debt-related issues.

• Skiba provides insights, advice, and recommendations on topics such as debt collection lawsuits, bankruptcy, and managing creditors.

• Skiba offers online tutorials and templates for individuals who cannot afford to hire an attorney but need assistance in managing their debt.