Solving Debt Problems | Live Q&A with Arizona Attorney John Skiba

TL;DR

John Skiba, a consumer and bankruptcy attorney, answers questions regarding settling lawsuits with original creditors, reaffirmation agreements, rebuilding credit after bankruptcy, and more.

Transcript

hey everybody and welcome to Thursday night hey everybody John skiba here from the consumer Warrior YouTube channel it's Thursday night it's 5 15 p.m Arizona time and so we're here we're doing the live stream we do each and every week uh again my name is John skiba I am a consumer and bankruptcy attorney in the state of Arizona and uh founder of th... Read More

Key Insights

• 💦 Original creditors often require negotiations to be conducted through their lawyers, making it essential to work with them rather than contacting the creditor directly.
• ✋ Settlement offers from original creditors are generally around 50%, while junk debt buyers may demand higher percentages due to the evidence they possess.
• 💁 Financial documentation, such as pay stubs and bank statements, may be requested during the settlement process, but debtors should consider the risks before providing sensitive information.
• 🗃️ Filing a Chapter 7 bankruptcy does not automatically discharge the legal obligation to pay a car loan, and debtors should continue making payments to avoid repossession.
• 💼 Reaffirmation agreements in bankruptcy cases should be carefully considered, as they can create obligations that may have legal consequences in the future.
• 💳 Rebuilding credit after bankruptcy requires cautious handling of new credit agreements to prevent falling into risky financing situations.
• 🥺 Failure to comply with court orders to appear for proceedings such as judgment debtor examinations can result in contempt of court actions, potentially leading to civil arrest warrants.
• 💳 Disputing credit reporting inaccuracies regarding missed payments can be done through the credit reporting agencies by providing evidence of the payments made.
• 🌱 Changes in employment can be addressed in Chapter 13 bankruptcy through amended plans or conversion to Chapter 7, depending on the circumstances. It is crucial to consult with an attorney for guidance.

Questions & Answers

Q: Should I try to settle my lawsuit with the original creditor or their law firm?

It is recommended to work with the law firm representing the original creditor as they are unlikely to negotiate directly with the debtor. However, providing financial documentation carries some risks, so it is essential to weigh the potential benefits and drawbacks.

Q: What is considered a good settlement offer from Bank of America?

A settlement offer of 50% payable in 21 days is a good deal, especially when dealing with original creditors like Bank of America. It is important to consider the strength of the case and potential legal fees that could be incurred in court.

Q: Can I start rebuilding my credit before my Chapter 7 bankruptcy is discharged?

While it is possible to start rebuilding credit habits after filing for Chapter 7 bankruptcy, it is crucial to be cautious and avoid incurring new debts or entering unfavorable credit card agreements. Credit recovery may take 18 to 24 months after the discharge.

Q: Is it necessary to maintain full coverage car insurance if an auto loan is not reaffirmed after Chapter 7 bankruptcy?

The necessity of full coverage car insurance depends on state laws and the possibility of the creditor still holding lien rights on the vehicle. It is advisable to maintain full coverage to protect against potential liabilities and to ensure adequate compensation in case of accidents.

Summary & Key Takeaways

• John Skiba provides advice on settling lawsuits with original creditors, emphasizing the need to work with their lawyers rather than contacting the creditor directly.

• He discusses the factors to consider when settling a debt, such as providing financial documentation and the potential risks involved.

• Skiba explains the importance of continuing to make payments on a vehicle loan after a Chapter 7 bankruptcy, even if the loan is not reaffirmed. He also advises on the need for full coverage car insurance in such cases.