Defending Debt Collection Lawsuits, Bankruptcy & More | LIVE Q&A

TL;DR

Consumer Warrior attorney John Skiba offers advice and resources for individuals dealing with debt collection lawsuits and bankruptcy. He discusses topics such as compelling private arbitration, negotiating settlements, filing for bankruptcy, and exemptions for low-income households.

Transcript

hey everybody Welcome to Thursday night hey everybody John skiba here from the consumer Warrior YouTube channel I am back after a couple week Hiatus uh I was gone out of town I'll talk a little bit more about that in a bit but um uh here at the consumer Warrior YouTube channel uh what I do I am an attorney in the state of Arizona I do bankruptcy co... Read More

Key Insights

• 💼 Compelling private arbitration in debt collection lawsuits can benefit debtors by bypassing overloaded courts and potentially discouraging junk debt buyers from pursuing the case further.
• 🥺 Negotiating a settlement in good faith can lead to positive outcomes, but debtors should be willing to walk away from unreasonable offers.
• 📏 Bankruptcy can discharge most unsecured debts, but exemptions and specific rules vary by state. It is crucial to seek professional advice before proceeding.
• 📁 Residency requirements and eligibility criteria for filing bankruptcy should be understood before relocating or planning to file in a different state.

Questions & Answers

Q: Have you seen junk debt buyers follow debtors into private arbitration, especially for debts under $5000?

While it is possible to compel private arbitration in debt collection lawsuits, the high filing fees for creditors often discourage their participation. In Skiba's experience, it is unlikely for junk debt buyers to pursue arbitration for smaller debts, as they would have to pay substantial fees.

Q: What should I do if a settlement offer comes back higher than the original amount requested?

If the opposing party increases the settlement amount during negotiations, it may indicate bad faith. Skiba advises questioning the change and considering whether they have a valid reason for the increase. It is crucial to be willing to walk away from negotiations if they become unreasonable.

Q: Can I file for Chapter 7 bankruptcy in Arizona if I plan to move there?

Skiba recommends checking residency requirements and scheduling a consultation to discuss your specific situation. Bankruptcy laws vary by state, and you must live in the state where you file for the majority of the 180 days preceding the filing.

Q: Can a debt collector refuse to delete a settlement from my credit report?

Some creditors may argue that they have an obligation to report settlements accurately under the Fair Credit Reporting Act (FCRA). However, Skiba points out that creditors are not required to report to credit bureaus in the first place. It is worth pushing back and reminding them of this fact if they refuse to delete the settlement.

Summary & Key Takeaways

• John Skiba, an attorney specializing in consumer bankruptcy, addresses viewer questions and provides strategies for individuals dealing with serious debt problems.

• He explains the option of compelling private arbitration in debt collection lawsuits and the benefits of removing cases from the court system.

• Skiba advises negotiating in good faith with debt collectors and settling for an amount that is reasonable and favorable to both parties.

• He clarifies the requirements and exemptions for filing bankruptcy, including limitations on the discharge of certain debts, and emphasizes the importance of discussing individual cases with an attorney.