Finding out that you’re being sued for debt can be a big shock, and it also puts you at risk for losing the things you have. We have good news for you. You can protect yourself.
Could Anything Actually Make You Glad to Get Sued by Debt Collectors?!
It’s hard to believe that could happen, isn’t it – that you could actually end up glad you got sued by a debt collector? And yet it could true.
If you’re being sued by a debt collector, chances are it’s coming at the end of a long process that started with missed bills, phone calls, letters, messed up credit reports, worry, and missed sleep at night. I don’t need to tell you how awful it is. And the lawsuit itself may seem like a nightmare. After all, if you lose, you could face new problems: garnishment of wages, seizure of bank accounts, and possibly even worse.
And you can forget about your credit report if they get a judgment, right?
So How Could Getting Sued Possibly Be Good News?
The lawsuit could actually be the end of your trouble. Instead of hanging back and destroying your credit or just bugging you to death, which you can’t do much about, they’re suing you. And there’s a lot you can do about that.
That’s because the debt collectors usually start their lawsuit without what they need to win. If you play your cards right, that may give you a chance to erase your debt for good. In the process, you can take control of your life again.
Imagine how you’ll feel when you drive the debt collector away and erase the debt. You can start repairing your credit report and get back to your life. You can answer your phone without worrying about debt collectors
Finally.
Here’s what one user of our materials said about his experience:
| Today I received in the mail an offer “Stipulation For Dismissal With Prejudice”,which basically states the Plaintiff will dismiss their Complaint if I dismiss my counterclaim. All the examples,logic and powerful arguments presented in your materials helped me beyond belief! I am eternally grateful,and right now quite ecstatic!
Thanks Ken,
Frank from Arizona
|
And another:
| Just a quick email to say THANK YOU for your well written manual! I was scared to death when I got a Summons and Complaint served on me by a debt collection attorne. I did exactly what you said though, and basically let them know I wasn’t going away.… So I filed a Motion to Dismiss, and that was pretty much it. The Attorney folded like a cheap suit, and I have to say it almost felt better than sex!
Thanks again!
Gary |
These people, and many more, could tell you the same thing: you can beat the debt collectors.
And when you do, it will feel even better than you would ever guess. It will change your life. They’ll never push you around again. You’ll never be scared of debt collectors and their lawyers again.
If you know what you’re doing – and that’s what we teach you – you can probably win the case even if the debt collector actually has or can get what it needs. And it usually doesn’t. Your job is to make them start looking for those records, make them start losing money and worrying about whether they will ever see their money again.
The trick is to fight. They’re not really set up to fight you if you know what you’re doing.
I Don’t Want to Tell You You Can Just Get Away with It (But You Probably Can)
I don’t want to tell you you can rack up debt and get away without paying, because we should all pay our debts. But these are tough times, and sometimes things happen that make it impossible to pay.
And sometimes those things are the fault of the banks – they have just about ruined the economy for all of us, after all. not having to pay them would only be poetic justice. Although poetic justice can wait – if they’re after you, you’re in a fight that you just need to win.
Find Out More
If you’re ready to think about taking on the debt collectors, look through our site and consider joining us. We can help you take control of your life and force the debt collectors to leave you alone.
Sued for Debt Action Steps
Finding out that you’re being sued for debt can be a big shock, and it also puts you at risk for losing the things you have. We have good news for you. You can protect yourself.
Could Anything Actually Make You Glad to Get Sued by Debt Collectors?!
It’s hard to believe that could happen, isn’t it – that you could actually end up glad you got sued by a debt collector? And yet it could true.
If you’re being sued by a debt collector, chances are it’s coming at the end of a long process that started with missed bills, phone calls, letters, messed up credit reports, worry, and missed sleep at night. I don’t need to tell you how awful it is. And the lawsuit itself may seem like a nightmare. After all, if you lose, you could face new problems: garnishment of wages, seizure of bank accounts, and possibly even worse.
And you can forget about your credit report if they get a judgment, right?
So How Could Getting Sued Possibly Be Good News?
The lawsuit could actually be the end of your trouble. Instead of hanging back and destroying your credit or just bugging you to death, which you can’t do much about, they’re suing you. And there’s a lot you can do about that.
That’s because the debt collectors usually start their lawsuit without what they need to win. If you play your cards right, that may give you a chance to erase your debt for good. In the process, you can take control of your life again.
Imagine how you’ll feel when you drive the debt collector away and erase the debt. You can start repairing your credit report and get back to your life. You can answer your phone without worrying about debt collectors
Finally.
Here’s what one user of our materials said about his experience:
Thanks Ken,
Frank from Arizona
And another:
Thanks again!
Gary
These people, and many more, could tell you the same thing: you can beat the debt collectors.
And when you do, it will feel even better than you would ever guess. It will change your life. They’ll never push you around again. You’ll never be scared of debt collectors and their lawyers again.
If you know what you’re doing – and that’s what we teach you – you can probably win the case even if the debt collector actually has or can get what it needs. And it usually doesn’t. Your job is to make them start looking for those records, make them start losing money and worrying about whether they will ever see their money again.
The trick is to fight. They’re not really set up to fight you if you know what you’re doing.
I Don’t Want to Tell You You Can Just Get Away with It (But You Probably Can)
I don’t want to tell you you can rack up debt and get away without paying, because we should all pay our debts. But these are tough times, and sometimes things happen that make it impossible to pay.
And sometimes those things are the fault of the banks – they have just about ruined the economy for all of us, after all. not having to pay them would only be poetic justice. Although poetic justice can wait – if they’re after you, you’re in a fight that you just need to win.
Find Out More
If you’re ready to think about taking on the debt collectors, look through our site and consider joining us. We can help you take control of your life and force the debt collectors to leave you alone.
Objections 101
Objections – what they are and how they work
The way you protect yourself in trial from evidence that could hurt you is to object. This video discusses how that all works.
When lawsuits are tried, they are normally decided by the evidence much more than any argument. That means that you want to control what gets seen and considered by the judge or jury. At the same time, the “flow” of the action can make a difference, and so there are times a party might not want to slow things down or stop them even if what is getting said isn’t necessarily within the rules. Therefore, the courts let you waive your objections.
To put that a little differently, if you do not make an objection, a judge will normally treat your silence as a decision not to object, as a “waiver” of the right to object. An objection is the way you let the court know you want it to follow the rules of evidence.
In debt law, there is almost never any reason to waive an objection. Your case will probably be determined on the basis of a few documents, and whether those documents come into evidence will almost always depend on whether you object to them. Therefore, learn the two most important rules of evidence for debt law: the rule against hearsay evidence, and the business records exception to the rule against hearsay. Learn how to object, and be ready to shoot down their attempt to use the business records exception.
South Dakota Stats of Lims
Various South Dakota Statutes of Limitations
Contract: 6 years, (SDCL 15-2-13).
Domestic Judgments: 20 Years, (SDCL 15-2-6).
Foreign Judgments: 10 Years, (SDCL 15-2-8).
Claims of Fraud: 6 Years, (SDCL 15-2-13).
Sealed Instrument: (except real estate): 20 Years, (SDCL 15-2-6).
Actions not otherwise provided for: 10 Years, (SDCL 15-2-8).
Open Accounts: 6 Years, (SDCL 15-2-13).
An “open account” is usually what a charge or credit card is considered. Remember that the statute of limitations does not start “running” on the date the debt is incurred (in the case of credit card debt) but on the date the debt is defaulted on. It is a clock that only ticks after a “wrong” has occurred. Then you are given that amount of time to file suit. The statue of limitations does not apply to the time a lawsuit takes to develop, but only refers to how much time you have before you have to file suit or lose your rights.
Foreclosure and the FDCPA
Cease-Communication Letters
Debt collectors often try to wear down the resistance of consumers by repeatedly calling and harassing them. If this is happening, you can easily make it stop. Here’s how.
Debt Collection Strategies
Debt collection is a huge and growing industry in the United States, and collectors are notorious for some of the strategies they use to force and intimidate consumers into payment.
They’re Trying to Harass You
Debt collectors know that they people they are calling do not have much money-their purpose is to move themselves to the head of the line. The way they do this is by attempting to inflict more pain or annoyance on the consumer than other bill collectors. In other words, debt collectors know you only have so much money to pay your bills – they’re competing with each other. The company that harasses you the most “wins.” Sometimes individual debt collectors claim not to engage in abusive behavior, but rather to be the victims of it. I leave the reader to decide how much sympathy these debt collectors deserve, but my point is that, in general, the debt collectors seek emotional engagement – and, also in general – the best thing you can do is avoid it.
You Can Make them Stop Bugging You
The collectors are not concerned with your priorities or well-being, but you should be, and it is hard to keep a clear head amidst all the noise and all the people trying to use you. Luckily the Fair Debt Collection Practices Act (FDCPA) offers some help. Under the FDCPA, 15 U.S. Code Section 1692(c)c, “if a consumer notifies a debt collector in writing that the consumer wishes [it] to cease further communication with the consumer, the debt collector shall not communicate further…with respect to such debt.”
However, the collector may inform the consumer that it’s efforts are being terminated, or notify the consumer that it “may or will invoke specified remedies which are ordinarily invoked” (i.e., suing or reporting to the credit agencies). Many people fear that by invoking this rule they will cause the debt collectors to sue them – but this fear is probably misplaced (it is according to my experience). The debt collectors have their own guidelines based on what they expect to collect. If anything, writing a cease communication letter may reduce your chance of being sued because it keeps the debt collector from gathering more information about you.
What to Do to Make Debt Collectors Stop Harassing You
Crucially, if the notification is made by U.S. mail, the communication is complete “upon receipt.” In other words, to make sure the debt collector is forced to cease communications, it makes sense (although it is not required by the law) to send the letter by certified mail. That way you have proof that the debt collector received the letter. Any further communication would be in violation of the FDCPA.
When the phones stop ringing off the hook, you will be freer to make decisions according to your own best interests and priorities.
For More Help
Our Debt Collections Pack can give you a sample cease-communications letter and the guidance you need to keep the debt collectors off your back.
Debt Collection Laws – Debt Collectors and Creditors
If you are being threatened with a debt collection lawsuit, or if you are being harassed or sued over a debt by either a debt collector or an original creditor, you should know that there are some laws in place that could help you. This article will briefly discuss a few of the sources of legal rights you may have.
The difference between “Debt Collectors” and “Original Creditors”
First, a distinction that is very important in the law: the difference between debt collectors and original creditors. An “original creditor” is an entity (the law calls it a “person,” but it could be a human or a business) that extended credit to you in some way. For present purposes, it could also mean someone you owe money to in a non-credit transaction, and also means “servicers” of loans. Debt collectors are “persons” a significant part of whose business is the collection of debts due to other people.
Laws pertaining to Original Creditors
Because original creditors have some connection with the public other than debt collection and are therefore at least somewhat vulnerable to negative public opinion, the law gives them much more latitude in dealing with people who owe them money. They are not, however, permitted to assault you, obviously, or engage in other extreme and “outrageous” behavior. Where that line is drawn, however, differs from place to place. Some jurisdictions have allowed original creditors to post your name on a “hall of shame” board, for example, but I’ve never heard of anyone being allowed to chase you down the street calling you names. It’s vague, I know.
Laws do prevent anybody from defaming you (publication of false, seriously derogatory information), and this would include the publication of false information to your credit report. By and large the rule is, that all the basic rules apply to creditors, but very few special ones do. There might be particular laws in your jurisdiction, though, so you must take that with a grain of salt.
Laws pertaining to Debt Collectors
Debt collectors don’t have the “civilizing” connection to the community that most businesses do, and so the law is much more stringent regarding them. The rule there is that the Fair Debt Collection Practices Act makes “unfair” or deceptive debt collection techniques illegal. Again, the law is rather vague, but this time its vagueness is in favor of debtors. Debt collectors try many sneaky and underhanded tricks, and many shockingly abusive and outrageous tricks too, and the law is designed to try to cover them all. For further discussion, please see other articles.
Other sources of legal protections include state merchandizing practices acts (which mostly apply to marketing techniques) the Federal Truth in Lending Act, the Uniform Commercial Code, and the Federal Trade Commission. Other resources could also include the Better Business Bureau and State Attorneys General.
For a much more complete understanding of the debt law – especially if you are being sued, check out the Debt Defense System. If you are still in negotiations and want more information about what that might mean or how to go about it, check out the Debt Negotiation and Settlement System. And of course this website has a wealth of information available for free. Be sure to contact me if you have questions.
Garnishment of Assets
what to do when sued for debt
If you’re being sued for debt by debt collectors – and even by original creditors – there are some basic things you need to know. This video tells you how to start defending yourself and why you have such a good chance to win if you do.
There is an epidemic of debt litigation. Partly this is because debt of all kinds is at historic levels – there’s never been so much consumer, auto, credit and other debt around. And there’s never been so much of that debt that isn’t being paid. To complicate this picture and make it even worse, identity theft (and resulting unpaid purchases and bills for people whose identity has been stolen) is also at historic levels – and getting worse.
In short, things are bad and getting worse for a lot of people.
If you get sued, you should not panic. One good thing to come out of the debt epidemic is that the debt collectors use factory-type collection methods. If you know what you’re doing, your chance of successfully defending yourself – whether or not you ever actually owed anybody on the debt – are extremely good. That’s because the debt collectors find it more profitable to go after people who don’t fight back. Fight back, and you’re making yourself much less attractive as a defendant – and making it much more likely they’ll drop the suit. Plus, you have a very good chance of winning even if they don’t drop the suit.
Our company exists to help people fight back intelligently. That way, you don’t just hand the debt collectors and easy win, and they’ll probably move on. Or you’ll win.
Being Sued for Debt
Being Sued for Debt
If you’re already being sued for debt – that is, they’ve filed suit against you and served you (or you have found out in some other way) – you have an immediate decision to make. You could give up and let them get a judgment and take your money if they can find it. Or you could defend yourself.
It makes all the sense in the world to defend yourself.
You may think that lawyers wouldn’t file a law suit if they didn’t have the evidence to prove it, and in most kinds of cases that would be correct. Lawyers don’t want to waste their time on bad lawsuits. But in debt law it’s different. In debt law, the debt collectors take hundreds of alleged debts and file suit in all of them (if they want to) without ever looking to see whether they have any evidence that’s any good. They do that – and you might even say the HAVE to do that – because they know that almost all of the people they manage to get served with the lawsuit will give up. When you never have to fight to win, making sure you could win the suit is a waste of time. So they don’t.
As a matter of fact, you have an excellent chance of winning if you fight the debt collectors, and you can do that in one of two ways. You can either hire a lawyer or represent yourself (this is called “pro se” representation).
Going “Pro Se”
While I have always considered hiring a lawyer who understands debt law and will be aggressively on your side as the best way to defend yourself if you can afford it, there are two problems with it. First, it is almost always pretty expensive, and it can be very expensive sometimes, And secondly, it can be difficult to find the right lawyer – and it isn’t always easy to tell who is the wrong lawyer.
It can make sense to represent yourself. This type of law is not extremely complicated, and the debt collectors are often lazy or simply do not have and cannot get what they need, to beat you. If you want to take this route, then I suggest that you get one of our memberships. That will give you information and backing you can use all the way through your defense.
Hiring a Lawyer
I have always considered hiring a lawyer who knows debt law as the best option when you’re sued for debt if you can afford it. As I mention above, the challenge can be finding a lawyer who is experienced in debt law defense and who is not too expensive. I believe I have found a good option for that – a prepaid legal plan specializing in debt defense. If you think you would like to hear about this plan, check out our information on prepaid law.
About the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) is the centerpiece of legal protections for debtors against debt collectors. The law was passed in its essential form in 1977, and its goal was to protect debtors against the abuses of debt collectors. This article discusses what makes this law great, and some of its limitations.
The Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) was enacted to put an end to some of the worst practices of the debt collection industry. It’s been a very good law, but the debt collectors are still doing many of the things the law was designed to present. You may be able to sue them or prevent them from suing you..
The Debt Collection Industry
Before the act, the debt collection industry was routinely engaging in the most abusive sorts of behavior imaginable, from calling debtors at all hours of the day or night and subjecting them to streams of cursing and name-calling, to discussing their debt with children, neighbors, and employers. Debt collectors frequently misrepresented themselves as attorneys and often threatened legal action which they were powerless to initiate. And they often attempted to, and did, collect debts that either never existed or were long unenforceable because of statutes of limitation or bankruptcy.
Whatever the staid spokespeople of the debt collection industry may say, this is the background of their industry. The Fair Debt Collection Practices Act, 15 U.S.C. Section 1692, et seq., was enacted to put a stop to these extreme behaviors in 1977. Because the people intended to be protected by the act are underrepresented by lawyers, and because of the explosion of debt litigation over the past decade, many of the old abuses still continue, and as people increasingly defend themselves from the debt collectors, they develop new tricks all the time.
The FDCPA: A Pretty Good Law
Nevertheless, the FDCPA is in many ways a model piece of legislation. What makes the law so powerful is that, in addition to making certain enumerated acts illegal, the Act also more generally makes acts that are “oppressive,” “false or misleading representations,” or “unfair practices” illegal. This means that, whereas in most laws, the would-be wrongdoer is free to craft his actions around the specific language of the law and find “loopholes,” under the Fair Debt Collection Practices Act, at least, the consumer may argue that these actions are still unfair or oppressive. The Supreme Court has ruled that an “unfair” act can be shown by demonstrating that it is “at least within the penumbra” of some common law, statutory “or other established concept” of unfairness.
That’s pretty broad. The price for this flexibility, however, is that the remedies—what you get if you prove the case—are less powerful. And this may be why the practices are still occurring today.
As mentioned above, there are specific actions enumerated in the FDCPA, and these include most notably, suing on expired debts, filing suit in distant jurisdictions, publishing certain types of information regarding the debtor, calling outside of specified hours. And the list goes on. If the debt collector is acting in some highly offensive way, chances are he’s within the specific provisions of the Act. These can be found at 15 U.S.C. 1692c, d, e and f. You can find the specifics by Googling the Act or provision and determining whether the specific action you’re concerned about is within one of these provisions.