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Posted: Fri Dec 21, 2007 8:32 am Subject: What happens if suit is filed

Can anyone explain what happens when a suit is filed? also what if a judgment is placed against you? What can the CA's do at this point?

Posted: Fri Dec 21, 2007 11:13 am Subject:

If a suit is filed, you are usually served a summons to advise you of the suit, who has filed it, and what for. Somewhere on the summons it should tell you how many days you have to file an answer with the court in response to the summons. Depending on your state and local courts, some list a court date on the complaint, so you want to definitely show up if there is a date listed.

If you do not file an answer with the court in the time given, and or do not show up in court, then a judgment is automatically awarded to whomever has sued you.

If a CA sues for judgment and gets it, then they can continue trying to collect. It is best to offer some type of payment arrangement that you can pay through the court until the debt is paid off. If you don't do anything, the attorney who filed the suit on behalf of the creditor/CA can petition the court to get you to appear and disclose all of your non-exempt assets so they can determine how they can get their money from you. The court will then send you a notice to appear and give the date. The attorney handling the case can also get the court to put a freeze on your bank accounts while you're waiting for the court date to come up, and they can also ask that your wages be garnished.

So, it is best not to ignore the situation.

Posted: Fri Dec 21, 2007 11:20 am Subject:

If you wish to fight the suit there are several ways to do this. Is the debt yours?

Posted: Fri Dec 21, 2007 11:33 am Subject:

Yes the debt is mine. I am not fighting that its not. I just can't afford to pay it all at once. I have offered reasonable payment arangments to pay the balance in full but no luck. It not like I don't want to pay, I am trying to. I have sent them DV letters this morning so I will see where that gets me.

Posted: Fri Dec 21, 2007 11:36 am Subject:

Be sure to keep everything and make a strong paper trail.

Posted: Fri Dec 21, 2007 11:39 am Subject:

Thats what I am doing. I just wish I would find $15,000 somewhere and pay everyhting off. I am just so frustrated with the whole situation.

Posted: Fri Dec 21, 2007 11:40 am Subject:

Have they already filed a suit against you? If so, they should have validated the debt in the paperwork that was filed with the court, at least that was the case in my situation. Everything was there, right down to my signature.

I know exactly what you're dealing with.... seems as though some of these CAs would rather go straight for the judgment rather than accept payments. Don't give up, and keep track of all conversations you have with the CA (i.e., dates, who you spoke to, what was said) and also any written correspondence.

This way,you can at least show that you did offer to try and settle this matter before it escalated.

Posted: Fri Dec 21, 2007 11:41 am Subject:

If they already filed suit request validation in discovery.

Posted: Fri Dec 21, 2007 11:44 am Subject:

That is good info to know, JCEMT. I wish I had known what was what when this happened to me a few months back.

Posted: Fri Dec 21, 2007 11:53 am Subject:

No they haven't filed suit as of yet but I can just feel it coming. I have a laywer that will help me if it goes to the lawyrers and litigetion. I was able to work out a payment plan with one of the creditors. They are allowing me to do monthly payments over 48 months. One I am still waiting to hear from I sent a DV letter and A payment arangment letter(I know they have the debt, confirmed with OC). THe other one is working for a bottom feeder and all the want is there money, and they are racking up fees and interest as well. I just mailed out a DV letter but I have a feeling before they validate they will file suit.

Posted: Fri Dec 21, 2007 12:03 pm Subject:

If it's a junk debt buyer then chances are they won't be able to win the suit. The two most important things the judge will want to know are:
1. Is the debt yours?
2. Does the collection agency legally own the debt?

If you request validation during the discovery phase your basically telling the judge that this documentation that constitutes validation proves if the CA owns the debt, the judge will most likely approve your discovery request and will order the CA to produce documentation to show cause. Also you challenge chain of custody during discovery so that they have to show receipts where either they purchased the debt or a assignment contract was entered into with the previous owner tracing it back to the original creditor. If not, then there is no way to show that they actually have claim to this debt.

Most junk debt buyers will not have access to any of this information meaning that the case will probably be dismissed. If it is done so with prejudice then that means that they cannot sue for it again. Then you can feel free to pay on your terms without them trying to go gun ho and sue you. Chances are after they loose the suit they will probably sell your debt to another collection agency though.

Posted: Fri Dec 21, 2007 12:05 pm Subject:

I have heard of people sending a payment arrangement offer with the first payment enclosed (money order/cashier's check), and stating in the offer that by accepting and endorsing the enclosed payment, they are accepting the terms of your offer and also agree not to file suit against you as long as you stick to the payment arrangement. Request that they send you written confirmation of their acceptance.

I haven't heard of anyone who has tried this tactic having their payment returned. So, it might be worth a shot. By paying with money order/cashier's check, you can verify whether or not the payment has been endorsed.

Posted: Fri Dec 21, 2007 12:12 pm Subject:

I wish I would have found this site a year ago. I appreciate everyones help with this matter. This hole process shouldn't be so hard. I like the idea of sending them a payment with an offer letter. Would it be legaly binding if they endorse your payment? The creditor is CACH,LLC - I hear they are of the worst of the worst.

Posted: Fri Dec 21, 2007 1:06 pm Subject:

Demand strict proof from the junk debt buyer that you are contractually obligated to them. Don't offer them anything, or even admit to owing even a portion of the debt.

Posted: Fri Dec 21, 2007 1:23 pm Subject:

I had already sent them a payment arangment prior to finding this site. I have since stopped all communication and sent a DV letter to them. I have a feeling they are going to fill suit when they receive it.

Posted: Fri Dec 21, 2007 1:45 pm Subject:

If they file suit in response to a DV letter, that probably means they cannot validate and want to try to panic you into thinking that there is no chance. Thing is debt validation is something that judges like too. If you motion to show cause by requesting validation (I would also make them prove it by challenging chain of custody, make them show how it got from the original creditor to them, receipt for portfolio, assignment contracts, etc.) 9 times out of 10 they can't provide this documentation and the case gets dismissed.

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