Being Sued By Credit Card Company?

TL;DR

This video provides strategies and tips for dealing with debt collection lawsuits, including the importance of filing a written answer and the different approaches for lawsuits brought by original creditors versus junk debt buyers.

Transcript

• Hey everybody, John Skiba here. And if you have been sued by one of your credit cards recently you're probably feeling a lot of stress. Your mind is going to the worst place and you're not sure how to deal with it. I promise you this, you've come to the right place. If you watch this video and spend the next five minutes or so with me, I promise ... Read More

Key Insights

• 📁 Filing a written answer is crucial to avoiding a default judgment in debt collection lawsuits.
• 🏆 Debt collection lawsuits brought by original creditors are generally resolved through settlement approaches, while lawsuits brought by junk debt buyers may be contested or settled.
• 😀 Bankruptcy is a potential option for individuals facing multiple delinquent accounts or lawsuits.

Questions & Answers

Q: Do I need to respond to a debt collection lawsuit?

Yes, it is crucial to file a written answer to the lawsuit to avoid a default judgment. Most debt collection lawsuits result in default judgments because people fail to respond to the complaint.

Q: What are the potential consequences of a debt collection lawsuit?

Potential consequences of a debt collection lawsuit include wage garnishment, bank account garnishment, and home liens if a judgment is obtained against you. It is important to avoid allowing the creditor to get a judgment.

Q: Should I go to trial if I have been sued by the original creditor?

Going to trial against the original creditor is risky unless you have a strong chance of prevailing, such as in cases of identity theft. It is recommended to take a settlement approach to avoid facing additional attorney's fees and court costs.

Q: What should I do if I have been sued by a junk debt buyer?

If you have been sued by a junk debt buyer, filing an answer is still important. You may want to push the case towards trial and request documents from the plaintiff to challenge their proof. It is advisable to contest or settle the case rather than going to trial.

Summary & Key Takeaways

• Debt collection lawsuits can be resolved with planning and strategies, alleviating stress and avoiding harsh consequences such as garnishment or liens.

• Filing a written answer to the lawsuit is crucial to avoid a default judgment, as most cases result in default judgments due to people not responding to the complaint.

• The approach to dealing with a debt collection lawsuit differs depending on whether the lawsuit is brought by the original creditor or a junk debt buyer.