Credit Card Debt

Question:

Recently I was part of a Debt Reduction program and our debts went into collections. I misunderstood how the program worked and after I received a notice from a law firm, I cancelled the program and began making payment to the debtors.

I made two payments to this law firm for the debt. They made many suggestions to get money to pay this off...from a retirement account, a personal loan etc. However, I was not able to secure these funds. So, I spoke with their firm 2 days ago to set-up another payment arrangement and told them I could make $400.00 payment.

They gave me their mailing address and then told me that it was their policy to collect the entire amount. I clearly communicated to them that I could not and that I could make these payments. I received a call today saying that I had 48 hours to pay in full or they would file a civil suit against me. What are my options?

Answer:

Then let them do whatever they think they have to do.

Yes, I know that bit of advice will lead you straight into a lawsuit against you which you will probably lose no matter what you do.

Yes, I know that sounds scary but there is no need to be afraid of that. All that is required of you is to learn how to fight them effectively in court and how to take them to federal court if need be.

No need to be afraid of that either because if you take them to federal court the chances that you will ever see the inside of a federal courtroom are slim to none.

The reason you need not fear any of the above is that you can learn how to defend in local court and stand an excellent chance of controlling the outcome and take them to federal court if for some reason you can't control the outcome of the local court.

You can easily learn how to do all of that. For instance I have a student here in OKC who just got started on a case with Unifund. She has prepared her validation letter and that is ready to go. Next she will prepare her response to the court and her certificate of mailing as well as her interrogatories, demand for admissions and production of documents and she will easily be ready to file with the court on Monday and send off to the attorney.

She also has a case against her for foreclosure on her home. She and her husband were both sued so they will wait until after the home is sold at sheriff's auction and then when it comes time for the confirmation of sale hearing her husband will go to the hearing and put in his objection to the sale. In the unlikely event that his objections are not heeded he will file a suit against the attorney and the plaintiff as well. They will be unable to defend against that suit and the family will win a judgment against the lawyer and plaintiff for somewhere between $25,000 and maybe as much as $150,000 or more. There is no way at this time to determine what their damages might actually end up being. But there have been many instances where defendants have had cause to go to the confirmation hearing, object to confirmation on the same grounds and the attorneys can't seem to get the sale vacated fast enough because they know what their penalties can amount to if they allow the sale to go through.

After the sale is nullified and the judgment vacated the property automatically goes back to being owned by the family so the attorneys must start the proceedings all over again which they may or may not do. They may decide to negotiate with the family allowing them to keep their home rather than fighting about it.

Of course, the family will demand that the lawyers seal the judgment so it never shows up on their credit reports again. (Hows that for credit repair??)

Families in foreclosure like this who succeed in getting the sale stopped usually end up getting a much better deal out of their lenders and that is even more likely now with all the mortgage foreclosure problems that are prevalent today.

Of course, not all families have the same reason to stop the sale as this family has but there are always other ways to get the job done.

You see, I know how to win. I know how to make lawyers cry a lot and I know how to control judges who refuse to listen to valid arguments.

All you have to do is learn how to do it so there is no reason to fear getting sued. You can learn how to do it very easily and economically without hiring expensive lawyers.