If you are in the “pre-suit” stage, you are at least pretty sure that you are either going to sue or be sued. Of course this is not true of most debts – a vast majority of them never get litigated at all. But you almost never know for sure whether a debt will, or will not, go to litigation. Therefore you must make efforts to protect your rights.
As soon as the possibility of litigation enters the picture – and for as long as it stays there – you must remember that you are playing by different rules than you would in ordinary life. In ordinary life, for example, people think it admirable to admit your wrongs and try to make them right. To pay at least a little even if you can’t pay it all. And above all to communicate with the other people to minimize bad feelings and maximize possibilities.
This all changes if the possibility of litigation is there. All those usual things would just hurt you then. For example, admitting the debt and trying to work out terms might – and most likely would – constitute an admission that made it easier for them to sue you. And making it easier to sue you means making it more likely. Making any partial payment would “re-age” the debt, making it start all over from the point of view of the statute of limitations.
Thus if litigation seems at all likely, you need to start acting more strategically: make them think that suing and winning isn’t likely or at least that it will be expensive. Any doubts you can encourage about their ability to get any money even if they win are good ones. And if you don’t see how you will pay it all, you probably shouldn’t pay anything.
Worried about Debt? You Are Not Alone
Sample Debt Dispute Letter
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Get Hopping – Defend Yourself when Sued for Debt
Why people don’t do the things they need to do. Procrastination is murder in debt defense, where you often have only a few days to respond to a suit. And over the longer haul, debt is a problem that tends to get worse. Why don’t people do whatever is necessary to protect themselves? Maybe you just need a little extra motivation.
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Doing Things Right When Sued or Threatened with Debt Suit
When it comes to talking with debt collectors, Silence is Usually Golden.
The biggest risk you face when dealing with debt collectors – especially when sued for debt – is that you will do or say something wrong. Be careful when talking to debt collectors, and know that anything you say could come back to haunt.
But if you have something it is in your interest to say, then say it – and hang up afterwards.
The Nature of the Debt Collection Beast
Debt collectors and their lawyers are not, of course, all the same, but the process of litigation, and the relationship between debt buyers and the people they’re chasing for money are pretty similar. It will help you to know the nature of the beast that is debt law.
Debt Collectors and Debt Law – The Nature of the Beast
What you’re facing when you take on the debt collectors
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This video was originally part of a tutorial on what people facing debt trouble should do.
For People Sued or Threatened with Debt Suit
Debt Litigation – Early Stages of Suit
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Debt Litigation Manual – Pre-suit
If you are in the “pre-suit” stage, you are at least pretty sure that you are either going to sue or be sued. Of course this is not true of most debts – a vast majority of them never get litigated at all. But you almost never know for sure whether a debt will, or will not, go to litigation. Therefore you must make efforts to protect your rights.
As soon as the possibility of litigation enters the picture – and for as long as it stays there – you must remember that you are playing by different rules than you would in ordinary life. In ordinary life, for example, people think it admirable to admit your wrongs and try to make them right. To pay at least a little even if you can’t pay it all. And above all to communicate with the other people to minimize bad feelings and maximize possibilities.
This all changes if the possibility of litigation is there. All those usual things would just hurt you then. For example, admitting the debt and trying to work out terms might – and most likely would – constitute an admission that made it easier for them to sue you. And making it easier to sue you means making it more likely. Making any partial payment would “re-age” the debt, making it start all over from the point of view of the statute of limitations.
Thus if litigation seems at all likely, you need to start acting more strategically: make them think that suing and winning isn’t likely or at least that it will be expensive. Any doubts you can encourage about their ability to get any money even if they win are good ones. And if you don’t see how you will pay it all, you probably shouldn’t pay anything.
Time line of Debt Trouble
Like most things, trouble can be analyzed as a series of discrete steps you can consider. And you can fix them one thing at a time, too.
Timeline of Trouble
This time-line probably doesn’t tell you anything you don’t already know. Our point here is to “build system” to help you approach things systematically. It’s easier to take things one step at a time and in order than to take everything on at random. So much of what makes debt troubles so hard is that they are overwhelming and dispiriting. If you break them into simple steps and allow yourself the patience to do them one at a time trusting the results to add up over time, you can handle the problems.
We also suggest that you think “strategically,” which means keeping your end-results in mind from the very beginning.
Strategic Thinking
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