Debt Collection Lawsuits, Bankruptcy & Dealing with Serious Debt Problems (Live Q&A) | Summary and Q&A

837 views
January 28, 2022
by
Consumer Warrior
YouTube video player
Debt Collection Lawsuits, Bankruptcy & Dealing with Serious Debt Problems (Live Q&A)

TL;DR

Bankruptcy attorney answers viewer questions about debt-related issues such as defending debt collection lawsuits, dealing with bankruptcies, wage garnishments, and credit reports.

Install to Summarize YouTube Videos and Get Transcripts

Key Insights

  • ❤️‍🩹 Many debt collection lawsuits end in default judgments because most debtors do not respond.
  • 🥺 Improper service of process can lead to a default judgment being entered without the debtor's knowledge.
  • 🤝 Options for dealing with a debt collection lawsuit include settling the debt, vacating the judgment, or filing for bankruptcy.
  • 🥳 Interrogatories in debt collection lawsuits allow parties to gather information about the case and potentially challenge the creditor's evidence.
  • 👶 Debtors cannot be jailed for nonpayment of most debts, except for specific cases such as taxes and child support.
  • 😀 Creditors may issue a 1099-C if they forgive debt over $600, creating a taxable event for the debtor.
  • 💼 Bankruptcy cases can be transferred to another state if the debtor moves during the process.

Transcript

hey everybody and welcome to thursday night um i am john skiba i am your host here on the consumer warrior youtube channel i'm also a bankruptcy attorney and a consumer protection attorney in the state of arizona and if you're returning here you know what the deal is but if you're not this is your first time here every thursday night i do a live st... Read More

Questions & Answers

Q: What can be done if there was no notice of being sued for a debt collection lawsuit?

If you did not receive proper notice of the lawsuit, you can investigate the documents related to the case, such as the affidavit of service, and file a motion to vacate the default judgment if it was improperly entered.

Q: Can a credit card company file a 1099-C if debt is forgiven?

Yes, if a credit card company forgives debt over $600, they are required to file a 1099-C, which creates a taxable event for the debtor.

Q: Can a bankruptcy 13 case be transferred to another state?

Yes, you can move to another state during a bankruptcy case, as the court's jurisdiction is based on where you resided at the time of filing.

Q: Do creditors have to file a 1099-C?

Creditors are legally required to file a 1099-C if they forgive debt over $600, but not all creditors may comply with this requirement.

Q: Can a debt collector leave messages looking to deliver documentation?

Debt collectors should not disclose the debtor's financial situation or discuss debts with third parties. If a debt collector is violating these rules, a complaint under the Fair Debt Collection Practices Act (FDCPA) can be filed.

Summary & Key Takeaways

  • The attorney discusses common problems related to debt collection lawsuits, such as not receiving notice of being sued.

  • He suggests three options for those who have already had a judgment entered against them and are facing wage garnishment: settling the debt, vacating the judgment if improper service was conducted, or filing for bankruptcy.

  • The attorney addresses questions about interrogatories in debt collection lawsuits and explains that they are free-form questions that can be asked by either party to gather information.

  • He also clarifies that debtors cannot be jailed for nonpayment of debts, except in specific cases such as taxes, child support, and violation of court orders.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from Consumer Warrior 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: