Getting Sued By A Debt Collector? DO THIS FIRST!

TL;DR

When facing a debt collection lawsuit, it is crucial to file a written answer within the specified deadline to avoid a default judgment.

Transcript

hey everybody john skiba here from the consumer warrior youtube channel and if you are finding yourself in the position where you have been sued by a debt collector in this video i'm going to tell you the number one thing you need to do very very first in order to give yourself any chance of prevailing but if this is your first time here at my yout... Read More

Key Insights

• 🛟 Being served with a debt collection lawsuit can be overwhelming and cause anxiety.
• 🙈 Ignoring the lawsuit can result in a default judgment in favor of the debt collector.
• 💼 Filing a written answer to the allegations within the specified deadline is crucial to give yourself a fighting chance in the case.
• 😨 Settlement discussions can be pursued without fear of them being used against you in court.
• 💌 It is important to file the answer on time and mail a copy to the creditor's attorney.
• 🥡 Taking early action and understanding the process can help you regain control over the situation.
• 💄 Over 95% of debt collection lawsuits go unanswered, making filing an answer a proactive and advantageous step.

Questions & Answers

Q: What is the number one thing to do when served with a debt collection lawsuit?

The number one thing to do is to carefully read the summons and find out the deadline for filing a written answer to the allegations in the complaint. Failing to do so can result in a default judgment in favor of the debt collector.

Q: Can I negotiate a settlement instead of going through the litigation process?

Yes, it is possible to reach out to the attorney representing the creditor and explore settlement options. Settlement discussions cannot be used against you in court, and it's always worth trying to find a middle ground to resolve the dispute early.

Q: How can I make sure my answer is filed on time?

It is crucial to mark the deadline on your calendar and give yourself an additional five-day notice to prepare and file the answer. It is also important to mail a copy to the creditor's attorney to ensure they are aware of your response.

Q: What are the risks of not filing an answer to a debt collection lawsuit?

Not filing an answer can lead to a default judgment, granting the debt collector everything they're asking for, including attorney's fees and costs. This can result in wage garnishment and bank levy actions against you.

Summary & Key Takeaways

• Being served with a debt collection lawsuit can be invasive and stressful, but understanding the process can alleviate anxiety.

• The number one thing to do when served is to look at the summons and find out how many days you have to file a written answer to the allegations in the complaint.

• Over 95% of debt collection lawsuits go unanswered, leading to default judgments. Filing an answer gives you a fighting chance to resolve the dispute on your terms.