Debt Collection Lawsuits, Bankruptcy | Live Q&A with Arizona Attorney John Skiba

TL;DR

Consumer protection attorney addresses common debt-related questions, including statute of limitations, vacating default judgments, car repossession, and filing bankruptcy.

Transcript

foreign it's Thursday night welcome back to the consumer Warrior YouTube channel I am John skiba I am the founder of the consumer Warrior YouTube channel I'm also a bankruptcy and a consumer protection attorney in the state of Arizona I help people that are dealing with serious debt problems so each and every Thursday night what we do here on the c... Read More

Key Insights

• 😒 Debt collectors often use unethical tactics and may threaten to sue for debts that are outside the statute of limitations.
• 🦮 Vacating a default judgment requires a legitimate reason, such as improper service of process, and there are resources available to guide individuals through the process.
• 😨 Bankruptcy can discharge deficiency balances from repossessed cars and other debts, offering a fresh start for individuals facing overwhelming financial burdens.
• 🏆 The means test in Chapter 7 bankruptcy determines eligibility based on household income in the six months before filing and is not recalculated after filing.

Questions & Answers

Q: Can a debt collector sue me for an old debt that is outside the statute of limitations?

In most cases, debt collectors cannot sue for debts that are outside the statute of limitations. If it has been more than six years since the debt went into default in Arizona, it is likely illegitimate and a violation of the fair debt collection practices act. You can consider calling their bluff and asking them to serve you with a lawsuit.

Q: Can a judgment be reversed if I didn't respond to it in time?

It is possible to vacate a default judgment if there was a legitimate reason for not responding in time, such as improper service of process. You can file a motion with the court to request a reversal if the correct legal steps were not followed during the lawsuit.

Q: Can bankruptcy discharge a deficiency balance from a repossessed car and other debts?

Yes, filing for Chapter 7 or Chapter 13 bankruptcy can discharge the deficiency balance from a repossessed car as well as other debts such as credit card debt, personal loans, and medical bills. It is a viable option to consider when facing overwhelming debt.

Q: How does the court calculate the means test in a Chapter 7 bankruptcy if there are changes in household income?

The means test for Chapter 7 bankruptcy looks at the household income for the six months prior to filing. If there are changes in income after filing, they do not recalculate the means test. The income stated at the time of filing will determine eligibility for Chapter 7.

Summary & Key Takeaways

• The attorney discusses a case where someone received a debt collection letter for a 20-year-old debt, advising that it is likely outside the statute of limitations and may be an unethical tactic to collect payment.

• He explains the process of vacating a default judgment and provides resources for viewers to learn more about it.

• The attorney advises on the possibility of filing bankruptcy to discharge a deficiency balance from a repossessed car and other debts.