Your THREE Options If You've Been Sued By A Debt Collector! | Summary and Q&A

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September 8, 2022
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Consumer Warrior
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Your THREE Options If You've Been Sued By A Debt Collector!

TL;DR

If you've been sued by a debt collector, your options are to fight the lawsuit, settle the account, or file for bankruptcy.

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Key Insights

  • 😣 Doing nothing when sued by a debt collector can have severe consequences, including wage garnishment.
  • 🧑‍🚒 Option 1 is to fight the lawsuit by contesting the allegations, either on your own or with an attorney.
  • 😘 Option 2 is to settle the account by negotiating a lower payment and getting the debt wiped out.
  • ✋ Option 3 is to file for bankruptcy, particularly Chapter 7, which stops the lawsuit and eliminates the debt completely.
  • 🤑 Settling the account can be a quick solution, but you will have to pay some money.
  • 🤝 Bankruptcy is a suitable option for larger debts or when dealing with multiple debts and lawsuits.
  • 🆘 Understanding your options and seeking legal advice can help reduce anxiety and make an informed decision.

Transcript

hey everybody Joan skiba here from the consumer Warrior YouTube channel and in this video I'm going to share with you the three options you have if you've been sued by a debt collector and I'm going to go over the pros and cons of each and over all the details but if this is your first time here to my YouTube Channel please click subscribe check th... Read More

Questions & Answers

Q: What are the consequences of doing nothing when sued by a debt collector?

Doing nothing can result in a judgment against you, leading to wage garnishment, bank levies, and property liens.

Q: Can I fight a debt collection lawsuit on my own?

Yes, you can represent yourself and contest the allegations made by the debt collector. However, it's recommended to seek legal advice if needed.

Q: What are the pros and cons of settling the account?

The benefits of settlement include a quick resolution and the possibility of deleting the debt from your credit report. The downside is that you will have to pay some money.

Q: Is bankruptcy a good option for smaller debts?

Bankruptcy, particularly Chapter 7, is more suitable for larger debts or when dealing with multiple debts and lawsuits. Filing for bankruptcy can eliminate the debt and stop the litigation process.

Summary & Key Takeaways

  • When facing a debt collection lawsuit, doing nothing is not recommended as it can lead to wage garnishment and other consequences.

  • Option 1: Fight the lawsuit by contesting the allegations, either with or without an attorney. Pros include potential reimbursement for attorney's fees, but litigation can be time-consuming.

  • Option 2: Settle the account by negotiating a lower payment and getting the debt wiped out. Pros include speed and the possibility of deleting it from your credit report, but you will have to pay some money.

  • Option 3: File for bankruptcy, particularly Chapter 7, which stops the lawsuit and eliminates the debt completely. This option is more suitable for larger debts or when dealing with multiple debts and lawsuits.

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