If you’re being sued or threatened with suit, the first thing you will have thought about was getting a lawyer. Probably the second thing you thought was that you could not afford one. Lawyers don’t all charge the same, or even the same way, but they are all expensive.
What Lawyers Charge
A lawyer with experience, in a medium to large city, will aim to make at least $100 to $300 per hour. It seems impossible, but it’s true, and that will translate into:
- A flat charge of $1,000 to $1,500 for defending your suit;
- $1,000 or more in retainer plus a contingent rate; or
- An hourly rate of $150 per hour.
- Or some variation essentially equaling the same thing.
Now, not all lawyers will charge that much, but most will – or as much as they can.
What makes it even worse is that very few lawyers are very familiar with the laws involved in defending you. That means they either have to charge you their rates while they learn what to do, eat the costs of learning what they’re doing, or NOT learn what they’re doing. And all of these things have obvious problems for a person needing a lawyer.
So it’s hard to afford a lawyer.
It’s Hard to Find a Lawyer in Debt Law
It’s also hard just to find one who does this kind of law. Many of our members have reported that they could not find a lawyer who would take their case at any price. And there aren’t many lawyers who do. Most big cities have a few – it’s hit and miss in small communities. That’s because people can’t afford them for this kind of law, considering what they have to charge, and because most lawyers haven’t actually heard of most of the laws involved – debt defense is NOT standard teaching in law schools.
Lawyers who DO know about debt law know that, if they represent you, they’ll be taking on a case against a lawyer who handles dozens, perhaps hundreds or thousands of these cases at a time, with a staff, documents, and network to support all that. It’s a tough job. It can be done, but the math isn’t real great, so not many lawyers handle debt law defense.
You Can Do it Yourself
Luckily, you don’t have to have a lawyer for debt defense. In fact, it may even be an advantage to represent yourself. And while it may seem scary, you’ll see that it really isn’t very. Let me explain.
The Number One Reason Most People Don’t Defend themselves
The biggest reason people don’t defend themselves is fear – they’re afraid of having to show up in court, stand up and talk to the judge, talk to a jury… etc.
In fact, most cases of every type never go to trial. Very few do – less than five out of a hundred, perhaps much less than that. If yours DOES go to trial, and for every appearance before a judge, you will be fully prepared. You’ll know much more than the lawyer on the other side – and you’ll know you know, and so, eventually, will the judge. There are a couple of reasons this is so.
Debt Law is Factory Law
America is drowning in debt, and debt cases are filed by the truckload. That means a few things to you.
First, it means that the people filing the suit know very little about the cases before they file them – they just don’t have time. If you talk to the lawyer before a court date, you’ll see someone utterly confident that they’ll win – without having a clue about anything having to do with your case. The lawyer probably will have never even looked at your case.
Second, it means that the companies need to keep lawyer time invested in cases to an absolute minimum. As I say, the lawyers never worry about losing your case – they worry about spending time on it. So they will conduct discovery or other pretrial preparations, if at all, in a standardized way, and they will respond to you in a standardized way. That means you can foresee what they will say and prepare (which we help you do). And it means you can disrupt them if you do things they don’t foresee, and we help with that, too.
Given all that, it means, thirdly, that most debt plaintiffs’ lawyers are not particularly gifted lawyers. They spend all day, every day, doing the equivalent of a bully walking up and down a beach kicking sand on everybody that’s smaller them. That isn’t exactly great conditioning for legal thinking, and most good lawyers regard it as a waste of their talent and don’t want to do it. That means there will be a good chance you’re at least as smart as the lawyer you will see in this case. And you should be a heck of a lot more motivated.
With our help, you will be more knowledgeable, too. The best way to get that help is by joining us as a member.
Motion to Vacate or Set Aside
If you missed the time for filing your Answer or showing up in court – even by just a few minutes, there is probably a default order or judgment against you. You will need to get that order vacated or “set aside,” the legalese for “removed.” You need the court’s initial judgment to go away, in other words, so you can start over and defend yourself from the debt collectors. You ask the court to do that by filing a Motion to Vacate. There are two parts to every motion to vacate – the part that explains and seeks to excuse your failure to answer, and the part that shows the court that you have some sort of defense to the suit.
There are two conflicting policies behind vacating default judgments: the policy in favor of hearing every case “on the merits” (rather than letting the case be decided by a “technicality”) and the policy in favor of “finality,” which is just a way of saying that when a court has decided something it likes for things to end. When you’re a “little guy,” the courts are more interested in finality than they are for bigger economic players.
At the same time, the debt collector will fight hard to keep its default judgment – that gives it a chance to raid your bank accounts or wages at practically zero cost rather than allowing you to defend. Thus while you have a very good chance to get the default judgment removed, the motion is a little tricky, and time is of the essence, meaning that any delay in filing the motion could cause you to lose it.
The Motion to Vacate or Set Aside Default Judgment Packet consists of 9 Documents:
Although this is not “cut and paste” you will find this document, along with the directions, just what you need to file your Motion to Vacate and to get started defending yourself so you can keep the debt collectors from garnishing your wages or raiding your bank account.
Rule against Hearsay Evidence
The Rule against Hearsay is as close to a silver bullet as you get in debt litigation. I’ve often said that debt collectors don’t have and can’t get (cost effectively) what they need to beat you. The rule against hearsay is the rule that lets you keep the records they do have out of evidence.
A Critical Definition
Hearsay is an out of court statement offered for the truth of whatever was said. That is, a statement that was made (or written, usually in debt cases) somewhere other than a courtroom, under oath.
For example, if you testified that “Mr. Smith said the dog was white,” this would be hearsay if you wanted the jury to believe the dog was white. That’s because in order to believe that, the jury would have to believe Mr. Smith – and he hasn’t testified under oath in the presence of the jury.
If you testified that “Mr. Smith said the dog was white” would not be hearsay if you wanted to prove that Mr. Smith could talk, though, because in that case the jury could evaluate your statement that he did talk and would not need to form a belief as to whether the statement was correct.
In debt collection cases, the debt collectors often seek to use affidavits or business records that say the debt was a certain amount, that certain procedures were followed, etc. But these are only helpful if you believe the records – and thus the records are hearsay. To keep the judge from allowing the records to count, you must object to their admission. And you will probably have to be prepared to argue they aren’t subject to the “business records exception.”
Business Records Exception
The Rule against Hearsay is as close to a silver bullet as you are going to get in debt litigation, but the debt collector will try to get in their often bogus records using what’s called the “business records exception.” You need to understand this rule and prepare to defend against it. In this video we discuss this rule of evidence.
This should be obvious, but it’s easy to forget things in the rush of trial or argument. In order to argue the rule against hearsay or the business records exception, you must know those rules for your state. You should also have a copy of a court decision stating the rule (and ruling the way you want it to) WITH YOU at the argument or trial. You want to be able to hand the judge the case and point to specific language in it highlighted in bright yellow ink. That way there can be no mistakes.
Otherwise, mistakes are easy to make, and it’s easy to ignore the arguments of pro se defendants.
Entry of Appearance
The way you let the court and other side know, formally, that you are going to defend yourself, is by filing an “Entry of Appearance.” This video discusses this requirement and some other “red tape” like how days are counted.
The Entry of Appearance is important because once you do that, the court and other side must provide you notice of anything that is happening. Before that, you are subject to default without notice. You CAN enter a case without answering it, but you’re still subject to default. So enter your appearance AND answer the petition at the same time – even if you aren’t required by the court to do so.
In the lower courts in Missouri, people often show up for court and announce their presence when called. But if they don’t file an answer, if they miss another hearing they still get defaulted. Don’t let this happen to you.
Click here for a sample Entry of Appearance.
Affidavits by Debt Collectors are often False and Deceptive
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Affidavit – what it is and how to make one
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How to Answer a Petition when Sued for Debt
When you’re sued for debt, one of the first things you have to do is write and file an answer. You could lose the case very easily until you do. Luckily, it isn’t hard, and this video will show you how. For more detailed information and help on fighting and winning your suit against the debt collector, get the Debt Defense System. If it hasn’t come to litigation yet and you hope to keep it from doing so, you can get the Debt Negotiation and Settlement System.
Answering a petition in a debt law case is actually very simple. Keeping in mind that it is up to the plaintiff to prove its case if you deny a part of the petition, there is little incentive to admit anything. Pro se defendants also quite frequently overestimate the things they should admit. For example, you may know that you borrowed some money or used a credit card, but do you really know how much you borrowed or whether all the charges were legitimate? Do you know for sure that you did not pay some of the debt or that you truly, legally, owed every amount claimed? And do you know with certainty even that the company suing you owes the debt at all?
What to Do If You’ve Got Debt Troubles
If your bills are adding up and the bill collectors are beginning to bug you, you need to start taking action to protect yourself.
This video goes through the reasons you should win if you get sued for debt and begins the discussion on how to send the right signals to the debt collectors to leave you alone.
Why you Need us if you’re Being Sued for Debt
If you’re being sued or threatened with suit, the first thing you will have thought about was getting a lawyer. Probably the second thing you thought was that you could not afford one. Lawyers don’t all charge the same, or even the same way, but they are all expensive.
What Lawyers Charge
A lawyer with experience, in a medium to large city, will aim to make at least $100 to $300 per hour. It seems impossible, but it’s true, and that will translate into:
Now, not all lawyers will charge that much, but most will – or as much as they can.
What makes it even worse is that very few lawyers are very familiar with the laws involved in defending you. That means they either have to charge you their rates while they learn what to do, eat the costs of learning what they’re doing, or NOT learn what they’re doing. And all of these things have obvious problems for a person needing a lawyer.
So it’s hard to afford a lawyer.
It’s Hard to Find a Lawyer in Debt Law
It’s also hard just to find one who does this kind of law. Many of our members have reported that they could not find a lawyer who would take their case at any price. And there aren’t many lawyers who do. Most big cities have a few – it’s hit and miss in small communities. That’s because people can’t afford them for this kind of law, considering what they have to charge, and because most lawyers haven’t actually heard of most of the laws involved – debt defense is NOT standard teaching in law schools.
Lawyers who DO know about debt law know that, if they represent you, they’ll be taking on a case against a lawyer who handles dozens, perhaps hundreds or thousands of these cases at a time, with a staff, documents, and network to support all that. It’s a tough job. It can be done, but the math isn’t real great, so not many lawyers handle debt law defense.
You Can Do it Yourself
Luckily, you don’t have to have a lawyer for debt defense. In fact, it may even be an advantage to represent yourself. And while it may seem scary, you’ll see that it really isn’t very. Let me explain.
The Number One Reason Most People Don’t Defend themselves
The biggest reason people don’t defend themselves is fear – they’re afraid of having to show up in court, stand up and talk to the judge, talk to a jury… etc.
In fact, most cases of every type never go to trial. Very few do – less than five out of a hundred, perhaps much less than that. If yours DOES go to trial, and for every appearance before a judge, you will be fully prepared. You’ll know much more than the lawyer on the other side – and you’ll know you know, and so, eventually, will the judge. There are a couple of reasons this is so.
Debt Law is Factory Law
America is drowning in debt, and debt cases are filed by the truckload. That means a few things to you.
First, it means that the people filing the suit know very little about the cases before they file them – they just don’t have time. If you talk to the lawyer before a court date, you’ll see someone utterly confident that they’ll win – without having a clue about anything having to do with your case. The lawyer probably will have never even looked at your case.
Second, it means that the companies need to keep lawyer time invested in cases to an absolute minimum. As I say, the lawyers never worry about losing your case – they worry about spending time on it. So they will conduct discovery or other pretrial preparations, if at all, in a standardized way, and they will respond to you in a standardized way. That means you can foresee what they will say and prepare (which we help you do). And it means you can disrupt them if you do things they don’t foresee, and we help with that, too.
Given all that, it means, thirdly, that most debt plaintiffs’ lawyers are not particularly gifted lawyers. They spend all day, every day, doing the equivalent of a bully walking up and down a beach kicking sand on everybody that’s smaller them. That isn’t exactly great conditioning for legal thinking, and most good lawyers regard it as a waste of their talent and don’t want to do it. That means there will be a good chance you’re at least as smart as the lawyer you will see in this case. And you should be a heck of a lot more motivated.
With our help, you will be more knowledgeable, too. The best way to get that help is by joining us as a member.
Sue Bad Debt Collectors
Debt collection isn’t always a “pretty” business, and if you owe money – or if a company thinks you owe it money – they can get pretty rough. The law is practical, in general, and recognizes the importance of businesses getting paid. But there are limits. You have rights against rogue debt collectors.
Most of these rights can be found in the Fair Debt Collections Practices Act. We talk a lot on this site about defending yourself from collections suits. And this defense can often take the form of making counterclaims, as well. But what if you want to sue them? Can you do so? and why would you? This video explores those questions a little bit.
Be Aggressive: Sue the Debt Collector
There are a lot of reasons you might want to sue the debt collector. Doing so allows you to choose the time and court of the suit. Also, because debt collectors frequently sell the (your) debt, the one currently bugging you might not want or be prepared to sue you. Filing suit means you catch them unprepared, and they will be more likely to settle with you and cancel your debt. The Debt Defense System will guide you through the process.
It is easier to sue a debt collector than an original creditor for debt law violations. You have a fairly clear, broad set of rights against debt collectors under the Fair Debt Collection Practices Act (FDCPA). In general, they are required to be fair with you, and this means they must inform you of certain of your rights (like verification, for example), must not deceive or attempt to deceive you, cannot harass you beyond certain limits, and in general must treat you with fundamental fairness. If they violate any of these rules, you’ll have a claim against them under the FDCPA.
It’s a little different with original creditors. Businesses that have a relationship with you other than simply as collectors are somewhat vulnerable to getting bad reputations – they are “accountable to the market.” That puts certain natural limits on their actions as to how roughly they can treat you. Therefore, the FDCPA does not need to give you as many rights against them. Still, there are limits, and behaviors so extreme as to be “outrageous” will give you a right against original creditors.
So a critical distinction will be whether the company is a debt collector within the meaning of the law or not. That used to be easier to prove than it is now. If the company bugging you owns the debt it’s bugging you about, you will need to allege and prove that its “principal business” is debt collection. If it can show that it does other things (like lending or servicing accounts, or possibly even it it’s a subsidiary of another company that does other things), it may not be a debt collector. The biggest debt collectors are probably still within the FDCPA, but some others may not be.