Three Options When Facing a Debt Collection Lawsuit | Summary and Q&A

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July 14, 2020
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Consumer Warrior
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Three Options When Facing a Debt Collection Lawsuit

TL;DR

Learn three options for handling debt collection lawsuits: contesting the lawsuit, settling with the creditor, or filing for bankruptcy.

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Key Insights

  • 💳 Debtors should know that they will not go to jail for not paying their credit card debt.
  • 🏆 Debt collectors often sue without all the necessary evidence and documentation, giving debtors a chance to contest the lawsuit.
  • 👻 Settlement is an option that allows debtors to have some control over the outcome and reduce uncertainties.
  • 😀 Bankruptcy may be a viable option for those facing significant debt or a larger debt problem.
  • 🧑‍🎓 Student loans are often not dischargeable in bankruptcy, so it's important to consult with a bankruptcy attorney first.

Transcript

  • Hey everybody John Skiba here from the Arizona Consumer Law Group and this video I'm going to share with you three options you have when you're facing a debt collection lawsuit. But first, if this your first time here to my YouTube channel, go ahead and click subscribe and check off that little bell. That way you'll be notified each and every wee... Read More

Questions & Answers

Q: Can I go to jail for not paying my credit card debt?

No, debtors prisons were abolished in the late 1800s, so jail is not an option for not paying your credit card debt.

Q: Can I contest a debt collection lawsuit?

Yes, contesting the lawsuit is an option. Debt collectors often lack the necessary evidence and documentation to win in court.

Q: Is settlement a good option for dealing with a debt collection lawsuit?

Settlement can be advantageous as it puts some control back in your hands and reduces the uncertainties of going to trial. It's especially recommended if the creditor makes a reasonable offer.

Q: Should I consider bankruptcy if I'm being sued by a debt collector?

Bankruptcy should be a consideration if the debt collector is suing you for a substantial amount or if you have a larger debt problem. It can stop the lawsuit, eliminate the debt, and potentially resolve other unsecured debts.

Summary & Key Takeaways

  • If you've been sued by a debt collector, it can be stressful, but jail time is not a possibility. Debtors prisons were abolished long ago.

  • Contesting the lawsuit is an option worth considering, as debt collectors often lack the necessary documentation to win in court.

  • Settling the debt allows you to regain some control and reduce uncertainty. It's especially recommended if the debt collector makes a reasonable offer.

  • Bankruptcy is the nuclear option and should be considered if you have significant debt or if the lawsuit is part of a larger debt problem.

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