Tag Archive for: sued for debt

Do not get fancy when defending

As I have pointed out elsewhere, there are other products out there that will tempt you in various ways. One way is to find a shortcut. Another, equally dangerous thing, is to try to hide behind legalese. You may think you’ve found an excellent phrase, like “I know nothing about what you’re saying and therefore deny…”, but you could be burying yourself under an admission. (In this case, that you “know nothing about…” – the denial is a conclusion with no real impact, but admitting you know nothing? – that’s a fact you’ve just admitted.)

Don’t Try to Hide behind Legalese against Debt Collectors

I have recently had a customer tell me she bought a package that told her to answer requests for admissions with “after reasonable inquiry, defendant cannot either admit or deny… [each request].”

It sounds so much more reasonable, doesn’t it, to say “defendant has no knowledge to admit or deny…” or “after reasonable inquiry defendant cannot either admit or deny…” requests for admissions or allegations in petitions. The problem is, if you cannot admit or deny, and the debt collector alleges, there is nothing in opposition to the debt collector’s allegations. The debt collector just says, “defendant admits that, after reasonable investigation, she cannot deny…”

The standard for judgment on the pleadings is no genuine issue of material fact.

Just deny what you can. And you can deny anything you don’t have to admit in almost every jurisdiction. Don’t get fancy. Hiding behind fancy sounding legalese is, in the final analysis, just hiding. The judge knows it, and the lawyers know it. You know it too – or you wouldn’t try it.

You have very strong arguments to make in terms of law and justice. The debt collector has an extremely tough burden to carry. Your every effort should be to make that burden crystal clear – and to prove that the debt collector cannot do it. Legalese of any sort will simply distract from this sharp, clear mission. A clear, rigorous reading of the facts and law is your friend. Vagueness is your enemy. Products which encourage you to hide behind legalese invite you to disaster.

You Can Beat the Debt Collector

(Even If You Couldn’t Win the Lawsuit!)

If you’re being sued, I’m sure you’re scared. Everyone is. But hear this: you have a very good chance to win the suit if you stand up for yourself. Believe it or not, if you know what you’re doing, the odds are actually stacked in your favor against a debt collector. And it isn’t that hard to learn what you need to know to take them on and beat them.

And even more important, if you stand up for yourself, you will probably beat the debt collector even if you couldn’t win the suit. Read on to see why this is true.

Some Very Basic Facts You Need To Know

If people would stand up for themselves, debt collectors would have a very hard time making any money. Lucky for them, most people don’t stand up for themselves.

The Debt Collector’s Problems

The debt collector will have a lot of problems if you stand up for yourself. They usually don’t have the records they need to prove their case even if you actually did owe the money. And more often than you might expect, you don’t owe them the money because of certain time limits or because they can’t prove they own the debt. They also have certain even bigger practical difficulties that you can use to protect yourself if you know how to find them.

FEAR-The Debt-Collector’s Best Friend

Because the debt collectors would have such a hard time winning if you fight back, they rely on the terror of the collection process to scare you into settling the case or giving up altogether. This fear of the legal process is the most important weapon the debt collectors have. If you can handle that, chances are you’ll get off scott-free. That’s why YourLegalLegUp litigation materials explain how the debt collection business operates from top to bottom.

You Have Almost Nothing To Lose

Strange as it may seem, now that you’ve been dragged into this suit, most of the bad has already happened. It costs very little to fight if you do it yourself. And if the company wins, they are going to get the same thing (in almost every case) whether you fight or not. In other words, it won’t get worse if you fight.

And if you fight and win, as I explain in the section about counterclaims, not only will you not owe them anything, but they may have to pay you.

In other words, you have basically nothing to lose by fighting and everything to win!

Why You Have a Chance to Win

You actually have a very good chance of winning the lawsuit filed against you- if you stand up for yourself. Look at the lawsuit filed against you-the “Petition” it’s usually called. It may look like it was done carelessly, and it probably was. But the paragraphs of the petition say the things the debt company would have to prove to the court-if you stand up for yourself.

They have to prove the existence of a “contract,” or some obligation for you to pay. They have to prove they own the right to sue you. And they have to prove the amount you owe. You might think they could easily do that, but in fact it is difficult if not impossible for them to prove these things.

Why you should Win if Sued for Debt

What you should do if you’re worried about bills or debt collectors – real help for real people

In this article we’re briefly going to jump right in – actually all the way in – to the topic of debt collection. That’s because I want you to know, in a solid, specific way, why you have such a good chance to win if you get sued by a debt collector. You’ll see that by the time we finish this video.

There’s much more to learn, of course, and we’re even going to go back and fill in a few of the gaps from today’s discussion, but for now I want to show you that defending yourself from debt collectors isn’t – and doesn’t need to be – magical in any way. There are no secret methods here, no weird or bizarre tricks like writing things at angles or declaring that your mother sold you into slavery when she signed your birth certificate. There’s just knowing who the debt collectors are and how they operate, and knowing what to do about that in court.

Anybody can do it. Really. And if you do it, you will probably win your case.

Now before I get started, I want to tell you a little bit about lawyer-speak. I do that sometimes, and I want you to know how to take it. For example, I said above that if you understand what I’m about to tell you and do it right, you will “probably” win your case. Against almost all debt collectors and except in rare situations, I mean that you absolutely should win your case. But… nothing in legal life is guaranteed. It’s drilled into us in law school and later in practice that unexpected things happen, and people do wrong – they don’t know something, pay attention, or care sometimes when they should. That stuff happens, we all know it does, and it’s why I say things like “probably” when other people might sound more certain. I have a habit of speaking more precisely. Marketing and advertising is usually the opposite of that. So don’t worry – I wouldn’t tell you stuff if I didn’t think the chances were overwhelming that it would do you good. See that? I did it again! And I’ll probably do it all through these videos and articles. Don’t worry about that.

Okay, so you didn’t know it, but we were talking about what’s called the “Rule against Hearsay.”

That’s what’s called a “rule of evidence.” Rules of evidence control what a court is allowed to consider in rendering its decision. In debt collection cases, this is absolutely critical. I estimate that fully 95% or more of every debt collection case that actually goes to trial or is resolved on motion for summary judgment, will be determined by the way the rules of evidence are applied.

We’ll go into this in more detail later. For now, I want you to understand that courts are allowed to consider only evidence given under oath in court – unless there’s a specific rule that would allow something else to be considered. Think about it – among other things, that means that business records are not allowed – because they’re not evidence given under oath in court – unless there’s a specific rule that would allow them in.

The rule that debt collectors use is the “business records exception” (to the rule against hearsay). That rule is slightly different in different places, but it always requires someone who is familiar with the way records are kept to testify to certain specific things. And DEBT COLLECTORS ALMOST NEVER CAN TESTIFY TO THE WAY RECORDS WERE KEPT BY THE ORIGINAL CREDITORS. That means that if you object and know what to say, the debt collectors can virtually never get their most important evidence in front of the court. They must lose their case then, and you must win.

We’ll talk more about the specifics later, but bear in mind that debt collectors buy vast quantities of debt at a time, and they so rarely need effective affidavits from the original creditors that they really essentially never get them. They probably won’t have them in your case, and won’t be able to get them, either. If you know how to object and (1) invoke the rule against hearsay and (2) point out their inability to follow the business records exception, you should be able to win your case.

Sometimes judges aren’t ready to listen to you, and we’ll talk about that in a later video, too. But for now: learn how to use the rule against hearsay, and you should win your case. No magic. Just the rules of evidences as they SHOULD be applied.

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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Sued for Debt – why your chance of winning is so good

Sued for Debt–Why Your Chances Are So Good

If you’re being sued on a debt by a debt collector, you have an excellent chance of winning. Debt collectors rarely have what they need to beat you – and often they can’t even get it without spending more money than the case is worth to them. If you know how to fight a little bit your chances of winning are good, and most of the time you don’t even need a lawyer to do it. Watch this video to see why your chances are so good.

 

 

Seven Steps to Take if Sued for Debt Part 2

This is the second video in this short series. In the next letter we are going to discuss the actual mechanics of answering the petition and the importance of counterclaims and possible counterclaims you may have. For the first video in the series, click here.

Things you Should Know before you Settle

Things You Should Know before You Settle with the Debt Collector

If you’re being sued by a debt collector, you’re probably worried–of course you are–but think twice before settling the case just to make it go away. Sometimes that can be a very bad idea, and if you will hang in there and fight a little bit, you’ll be in much better shape.

A Few Basic Facts about Settling Debt Cases

The lawyers for the debt collector never worry about losing a suit – they always assume they will win. And has nothing to do with the evidence, because they rarely have any idea of what the evidence is or what they could prove if they have to. Their confidence comes from two things: they don’t worry about losing a case because they have many of them and they’re cheap. And they don’t think you – a non-lawyer – have much of a chance against them anyway. So going to court and claiming they’ll win (if you try to negotiate) is nothing to them at all – and it should mean nothing to you, either.

So what do the lawyers for the debt collector fear? They fear wasting time – or spending it at all. That’s why they never do more than glance at your case before you show up. They have the business down to spending just a very few minutes per case.

They can do this because they do lots of cases at the same time and because most people give up or default.

So in Order to Settle in Any Meaningful Way

In order for you to get them to take you seriously, you will need to do a little work – and you will need to make them do a little work. Before that happens, they might knock off 20-30% of what the case is seeking if you ask (or they might not), but they won’t do serious negotiation. To settle, you have to file an answer and begin to defend yourself. Once you file an Answer and serve them some discovery, they start noticing you, and after that the chances of settling just get better and better.

And so do your chances of winning outright.

So hang tough for a bit and do a few things – they’re easy to do and not really scary. And if you want to settle eventually you can be sure that you will have made that easier and better. Or keep fighting and see if you can make them give up.

What to Do if Sued for Debt

What to Do if You’re Being Sued for Debt

If you are being sued for a debt, you may be intimidated or even feel panicked. You may be considering giving up, but there is really no need for you to do that. You have an excellent chance to win if you will just fight a little bit. If you’re being sued on a  debt and want to know what your options are, watch this video.

If You Are Already Being Sued

If you are already being sued, you probably should not wait for anything. You need action now. You should be doing things to protect yourself NOW. You can beat them – it’s mostly a question of knowing what you need to do and doing that thing throughout the lawsuit, while at the same time not doing the things you should not do, until you either make them go away or win at trial. It sounds simple, and it is – if you know what you’re doing.

The purpose of our debt defense memberships is to help you know and do the things you need to do. And avoid the things that might hurt you.

I have had a great deal of experience both as a litigator and web master and have realized that almost every person representing himself or herself in a debt case would do much better if

  1. they have an opportunity, preferably on a regular basis, to talk to other people who can help them with insights and information; and
  2. a lot of the work done for them.

Our membership and resources do that. They certainly will not take all the work, or much of the learning, out of it, but any of our memberships will dramatically increase your chances of winning and reduce the amount of work you have to do.

If You Are Not Already Being Sued

If you are not already being sued, and want to try to negotiate with the debt collectors or creditors to clear up your credit report or make sure they do not sue you, then you may want our Debt Negotiation Membership.

Not all negotiation and settlement happens in court, you know. It is possible to contact many creditors and debt collectors to work things out without a law suit. But – whether there is a lawsuit or not, all negotiations occur “within the shadow of the law.” That is, in order to negotiate effectively, you need to know what their rights are, and what your rights are, in the law. What can they do to you if you do not settle? And what can you do to them? Knowing the answers to these questions helps you handle the fear and uncertainty that haunts so many people as they try to get a grip on their financial lives. You can find the answers you need.

And after you find the answers that lie behind the debts, you still need to know what to say and how to say it. You’ll find plenty of help with that, too. You see, it makes a large difference who you’re talking to and where in the debt collection process you are. We do not offer empty formulas, but rather solid understanding of what they are after, what you might want or get… and a few suggestions about how to say things so you’ll get them.

Four Sneaky Tricks to Get You to Default

Four Sneaky Tricks by Debt Collectors to Get You to Default

Debt collectors make their money by scaring, or tricking, people into forfeiting their rights to defend themselves. Often they will let you think you have come to some sort of agreement with them to avoid court (and judgment), they won’t work with you to accommodate your schedule, and general try to intimidate and scare you into staying away from court. Here are some of their more common tricks. Check out the Debt Defense System and materials for things you can do if debt collectors try these on you.

 

 

Four Dirty Tricks and What to Do about Them

Debt collectors use many dirty tricks to try to scam, threaten, trick, or intimidate you into paying. This video goes into a few of those, and what you can do about them.

In this video, we discuss four tricks and point you to the sections of the Fair Debt Collections Practices Act that makes them illegal.

It is illegal for the debt collector to threaten to take legal actions that it cannot legally do. This would include threats of imprisonment, public humiliation, or garnishment or seizure of your wages.

It is also illegal for them to communicate untrue information or, where you have disputed the debt, to report the debt without mentioning that you did dispute.

Sometimes debt collectors will pretend to be various types of authority figures – and sometimes they will send a collection letter that looks either like a lawsuit or a judgment or other information from a court. Any form of deception about who is sending the letter to you, whether that deception takes the form of an actual lie or simply deceptive looking information, would also violate the Fair Debt Collection Practices Act.

If you think the debt collector has violated the law, or if you need to defend yourself from a lawsuit, be sure to check out our Debt Defense System – it will give you what you need to understand what you are facing and the help you need to defend yourself effectively from the debt collectors.

Check out our Guide to Legal Research and Analysis

If You Are Already Being Sued

 

If you are already being sued, you probably should not sign up for the course and wait for anything. You need action now. You should be doing things to protect yourself NOW. You can beat them – it’s mostly a question of knowing what you need to do and doing that thing throughout the lawsuit, while at the same time not doing the things you should not do, until you either make them go away or win at trial. It sounds simple, and it is – if you know what you’re doing.  You can no those things with the Debt Defense System and get help doing the right things while avoiding the worng ones.

I have had a great deal of experience both as a litigator and web master and have realized that almost every person representing himself or herself in a debt case would do much better if (1) they have an opportunity, preferably on a regular basis, to talk to other people who can help them with insights and information; and (2) a lot of the work done for them. The Debt Defense System does that. When you buy the Debt Defense System, you will also get a membership which both allows you to use the full resources of Your Legal Leg Up’s website and participate in our weekly teleconferences where members speak to each other and Your Legal Leg Up’s staff.

Just think about how it will be, first when you walk away from the debt collectors who have been making your life miserable, and then as you move towards a life of greater freedom and happiness – free from debt, and free to build your future.

The Debt Defense System is a service designed to give you all the materials and support you will need to defend yourself from either the debt collectors or original creditors without having to hire a lawyer.

If You Are Not Already Being Sued

If you are not already being sued, and want to try to negotiate with the debt collectors or creditors to clear up your credit report or make sure they do not sue you, then you will want our Debt Negotiation System.

Not all negotiation and settlement happens in court, you know. It is possible to contact many creditors and debt collectors to work things out without a law suit. But – whether there is a lawsuit or not, all negotiations occur “within the shadow of the law.” That is, in order to negotiate effectively, you need to know what their rights are, and what your rights are, in the law. What can they do to you if you do not settle? And what can you do to them? Knowing the answers to these questions helps you handle the fear and uncertainty that haunts so many people as they try to get a grip on their financial lives. You can find the answers you need.

And after you find the answers that lie behind the debts, you still need to know what to say and how to say it. You’ll find plenty of help with that, too. You see, it makes a large difference who you’re talking to and where in the debt collection process you are. We do not offer empty formulas, but rather solid understanding of what they are after, what you might want or get… and a few suggestions about how to say things so you’ll get them.

Should you settle or fight with debt collectors

If you’re being sued by a debt collector and just received the “summons” (your notice to appear in court), you may be tempted to call the company and make a deal or not to go to court at all. People do this because they’re afraid, feel guilty, or think they can protect their money or credit reports if they are “reasonable” with the debt collector. It’s usually a mistake.

Let’s take these “reasons” one at a time.

FEAR

As you will see, there is little to fear if you stand up for yourself.

The Good

With a little help, you have a good chance to win the lawsuit even if it goes to trial. But whether or not you could actually win the suit, you may be able to raise the debt-collector’s cost of suing you to the point where it gives up long before the case goes to trial anyway. As one person put it:

Today I received in the mail an offer of “Stipulation for dismissal with prejudice,” which basically states the plaintiff will dismiss their complaint if I dismiss my counterclaim. It’s a done deal. Your litigation materials were clear, vital, and necessary tools for me to win…

Frank

And if your fear is that the debt collector will suddenly take your bank accounts or garnish your wages, then you should know that they cannot do that without a judgment, which they can only get by formally winning the lawsuit against you and getting a judgment.

The Bad

If you look at the “Petition” (the suit itself), you will see either that it does not seek attorney’s fees at all, or that it seeks about 15% of the overall amount for fees. The debt collector is seeking this amount whether or not you fight, and if you do fight, the amount will hardly ever go up. That’s true with all the other amounts being sought, too. Chances are, the suit is already asking for the most you could lose. Therefore you have little or nothing to lose by fighting.

And since you won’t have to pay the debt collector anything if you win, and you have a good chance of winning if you fight-if you know what you’re doing- then you have everything to win.

The Ugly

The debt collectors love to get people to sign “consent judgments.” That judgment means they could take the money in your bank accounts and start garnishing your wages if you miss a single payment. If you fight and win, there will be no judgment against you, and even if you lose or settle, chances are it won’t happen for many months. And usually the debt collectors will make a better deal with you later on than they will at the beginning. Again, you have little to lose, and much to gain, by fighting.

GUILT

Many people feel guilty about not paying the bill they’re being sued for if it looks anything like a bill they know they didn’t pay. Most people want to pay their bills. They want to do the “right thing.”

Remember that you never borrowed anything from the company that’s actually suing you, and they never did anything for you. The company you borrowed from sold the debt to debt collectors, usually for a very small fraction of the face amount. Therefore, giving the debt collector money does not help the people you actually borrowed from. And the people you’d be giving your money may or may not actually own the debt. Lots of people have been sued by people who didn’t even own the debt.

Debt collectors are scavengers who feed off the troubles of people having hard times. If you have some extra money, couldn’t you think of a better way to spend it?

CREDIT HISTORY

You may think that making a deal with the credit card company will help your credit score or make another creditor look on you more kindly. Unfortunately, this is probably not true. By the time the debt goes to the debt collector, most of the damage has already been done to your credit report. Just about the only bad thing left that could happen is a judgment. And most people who settle with the debt collector give it a judgment.

CONCLUSION

In reality settling is usually the worst thing you could do to your credit history. We think you should fight. But even if you do want to settle, the Debt Defense System will tell you how to do so without harming your credit history more than necessary.