Thursday Night Live - Defending Debt Collection Lawsuits, Bankruptcy & More!

TL;DR

A bankruptcy attorney discusses debt collection, defending debt collection lawsuits, and bankruptcy-related questions in a live session on YouTube.

Transcript

hey everybody welcome to thursday night live here on the consumer warrior youtube channel i am john skiba i am a bankruptcy and a consumer protection attorney in the state of arizona and each and every thursday night we try to meet and discuss all things debt related defending debt collection lawsuits bankruptcy questions uh wage garnishments all t... Read More

Key Insights

• 🌱 When drafting an answer to a debt collection lawsuit, it is important to focus on directly responding to each allegation, avoiding excessive details or proposing settlement plans.
• ❤️‍🩹 Engaging with debt collectors depends on the end goal, such as filing for bankruptcy or seeking a settlement, and obtaining written agreements before making any payments.
• 🧑 After a person's death, their debts are not automatically forgiven, and creditors can make claims on the estate through probate processes or other legal means.
• 📁 When filing for bankruptcy, maintaining full disclosure with one's attorney is crucial to ensure better advice and prevent potential issues during the process.

Questions & Answers

Q: Should I challenge the right to sue me in my answer to a debt collection lawsuit?

It is generally recommended to focus on direct responses to each allegation in the complaint and save the challenge to the right to sue for later in a motion to dismiss or during trial.

Q: When is it appropriate to hang up on a debt collector?

If the debt collector becomes abusive, using profanity, making threats, or saying untrue things, it is not necessary to continue the conversation. Contacting an attorney specializing in Fair Debt Collection Practices Act (FDCPA) cases would be recommended.

Q: What happens to a deceased person's debts if they cannot be paid off?

Debts of deceased individuals do not automatically vanish. Creditors can make claims on the deceased's estate, depending on factors such as the presence of a will, life insurance, and state laws.

Q: For a debt collection trial involving a junk debt buyer, should I go to trial or file a motion for arbitration?

Filing a motion to compel arbitration often leads to debt buyers dropping the case. However, it may be helpful to attend a trial regarding similar cases and observe the court's response to certain arguments before making a decision.

Summary & Key Takeaways

• The attorney recommends responding to each allegation in a debt collection lawsuit with a simple admission, denial, or lack of sufficient information response, avoiding unnecessary details.

• When dealing with debt collectors, it depends on the end goal: if bankruptcy is planned, there is no need to engage with them; if settlement is desired, engaging in conversation and obtaining written agreements is advised.

• After a person's death, their debts do not disappear automatically. Creditors have the right to make claims on the deceased's estate through wills, trusts, or probate processes.

• When filing for bankruptcy, it is crucial to disclose all information to one's attorney, as full disclosure helps in providing better advice and prevents unexpected issues during the process.