Dealing with Debt | Live Q&A With Arizona Bankruptcy Attorney John Skiba

TL;DR

A licensed attorney discusses strategies for dealing with debt collection lawsuits, offering advice on negotiation and settlement.

Transcript

welcome to Thursday night hey y'all John skiba here from the consumer Warrior YouTube channel it's Thursday night we're back here in January of 2023 brand new year uh missed the last couple of weeks traveling with family for the holidays I hope you all had a great uh holiday season hopefully got a little bit of time off a little bit of hopefully no... Read More

Key Insights

• 📁 Settlement negotiations can occur even after a debt collection lawsuit has been filed by reaching out to the creditor's attorneys.
• 🔒 Bankruptcy can impact security clearances for government jobs, but discussing the situation with the employer and being transparent about resolving debts may provide a solution.
• 👨‍⚖️ Appealing judgments from justice to superior court involves filing a notice of appeal and designating the required documents to be sent to the superior court.
• 👔 Original creditors can charge off accounts and issue 1099-C forms, which may be amended by debt buyers if payments are collected.

Questions & Answers

Q: Can I negotiate a settlement with Bank of America after they have filed a debt collection lawsuit?

While it is recommended to reach out to Bank of America's attorneys rather than the bank directly, negotiation and settlement discussions are possible before filing an answer. However, it's best to avoid sharing too much financial information.

Q: Should I file for Chapter 13 bankruptcy if I'm going through financial hardship, but I have a pending security clearance for a government job?

Filing for Chapter 13 bankruptcy requires paying back some debts, while Chapter 7 may provide a better option. However, having a bankruptcy on your record may impact security clearance. It is recommended to discuss your situation with the employer and be transparent about your intentions to resolve debts.

Q: Can an original creditor charge off an account and send a 1099-C, then sell the same account to a debt buyer who also sends a 1099-C?

Yes, original creditors can charge off accounts and send a 1099-C. They can also sell the account to a debt buyer who may amend the 1099-C if they collect payments. It is advised to review the credit reports for accuracy and submit a dispute if necessary.

Q: Do debt collection attorneys need to follow the FDCPA, even if they are hired by the original creditor?

Debt collection attorneys may be subject to the FDCPA if they are primarily in the business of debt collection. While the FDCPA doesn't apply to original creditors, state laws may have similar provisions.

Summary & Key Takeaways

• The attorney recommends reaching out to the attorney representing the creditor if a debt collection lawsuit has been filed, as settlement negotiations can still occur before filing an answer.

• Bankruptcy can be a viable option, but the attorney advises considering the impact on employment, especially for government jobs requiring security clearance.

• The attorney discusses the process of appealing judgments from justice to superior court and advises being aware of the limited window to file an appeal.

• Questions arise regarding credit card debts, arbitration agreements, and the application of the Fair Debt Collection Practices Act (FDCPA) to debt collectors.