How To Draft An Answer To A Debt Collection Lawsuit (2021 Update)

TL;DR

Learn how to draft an answer to a debt collection lawsuit to avoid default judgments, wage garnishment, and bank levies.

Transcript

• Hey everybody, John Skiba here. And in this video, I'm going to share with you a very vital update on how to draft an answer to a debt collection lawsuit. Whether you've been sued by a junk debt buyer, like Portfolio Recovery Associates, Midland funding, Cavalry, Unified, all the other list of horrible out there. If you've been sued by one of tho... Read More

Key Insights

• ☠️ Debt collection lawsuits have seen a significant increase due to the availability of stimulus checks and higher unemployment rates.
• ⌛ It is crucial to file a response within the specified time frame to avoid default judgments.
• ❓ Understanding the different sections of a complaint, such as the attorneys representing the plaintiff, the jurisdiction, and the body of the complaint, is essential when drafting an answer.
• 🖤 The answer should clearly state whether you admit, deny, or lack sufficient information for each allegation in the complaint.
• ❓ Avoid providing unnecessary details or explanations in the answer.
• 📁 Filing copies of the answer with the court and opposing counsel is necessary for proper documentation.
• 🥺 Missing the deadline to file an answer can result in a default judgment, leading to additional costs and complications.

Questions & Answers

Q: Why is it important to file a response to a debt collection lawsuit?

Filing a response is crucial to avoid default judgments and give yourself time to negotiate a settlement without a judgment entered against you.

Q: What should you include in your answer to a debt collection lawsuit?

Your answer should clearly state whether you admit, deny, or lack sufficient information to respond to each allegation made in the complaint.

Q: Can you provide an example of a debt collection lawsuit complaint?

The video provides a generic example of a complaint filed by Portfolio Recovery Associates, one of the largest debt buyers in the nation.

Q: What is the biggest mistake people make when drafting their answer?

One common mistake is going into unnecessary details about why they fell behind on payments or discussing settlement discussions. The focus should be on responding directly to the allegations in the complaint.

Summary & Key Takeaways

• This video provides crucial information on how to draft an initial answer to a debt collection lawsuit, whether from a junk debt buyer or a regular creditor.

• Filing a response to the lawsuit is essential to avoid default judgments and buy time to negotiate a settlement.

• The speaker walks through the various sections of a complaint and explains how to respond to each paragraph.