Debt Busting Thursday | Live Q&A with Attorney John Skiba

TL;DR

Consumer protection attorney John Ska answers debt-related questions, including debt collection lawsuits, consumer bankruptcy, and wage garnishment, offering legal advice for residents of Arizona.

Transcript

hey everybody John ska here welcome to Thursday night here on the consumer Warrior YouTube channel each and every Thursday night we here answering questions going over topics of all things debt related whether it's debt collection lawsuits consumer bankruptcy wage garnishment we deal with all the horrible things out there as far as debt goes uh aga... Read More

Key Insights

• 🐕‍🦺 Debt collection lawsuits can be lengthy and require proof of proper service to have jurisdiction.
• 👽 If a default judgment is vacated, steps must be taken to remove the lien recorded against the property.
• 😀 Proceeding with arbitration may offer a fresh perspective and benefit individuals facing debt buyer lawsuits.
• 👻 After a Chapter 7 bankruptcy, debts will show zero amounts owed, but mortgage payments should still be made to retain the property.

Questions & Answers

Q: If there is no certificate of service, is a debt collection judgment considered void?

Yes, the plaintiff must prove that they served you correctly, and without a certificate of service, they may not have the proof required for the court to have jurisdiction. If they cannot prove service, the default judgment should be set aside.

Q: If a judge grants a motion to set aside a default judgment, is the lien against property automatically removed?

While the judgment will still be recorded with the County Recorder as a lien against the property, if the default judgment is vacated, the plaintiff should file a release with the County Recorder to remove the lien.

Q: Should one proceed with arbitration if demanded by a debt buyer like Midland?

If you file a motion for arbitration, you should be prepared to move forward with the process. It gives you a fresh perspective and may benefit your case. However, you must be prepared to present your defenses in arbitration.

Q: Is it normal for a mortgage servicer to show a closed account on a credit report after a Chapter 7 bankruptcy?

Yes, after a Chapter 7 bankruptcy, all debts, including mortgages, will show zero amounts owed. However, it's important to continue making mortgage payments as the bankruptcy eliminates liability on the promissory note, but not the lien on the property.

Q: What are the consequences of selling large assets like cars or boats before filing for bankruptcy?

Selling assets before bankruptcy is not problematic if it is an actual sale for the fair market value. However, if you transfer an asset for less than its value, the bankruptcy trustee can consider it a fraudulent transfer and undo the transaction.

Summary & Key Takeaways

• John Ska is a consumer protection attorney in Arizona who specializes in defending people facing debt collection lawsuits and consumer bankruptcy.

• The legal process for debt collection lawsuits can be lengthy, and individuals should be prepared for the slow pace of civil cases.

• Questions from viewers include whether a debt collection judgment is void if there is no certificate of service, whether a judge granting a motion to set aside a default judgment automatically removes a lien on the property, and more.