Have you received a summons for breach of covenant on an old credit card debt? Or, do you have collectors calling you daily and threatening to bring legal action? For many "junk debt collectors" bringing about lawsuits over old credit card debt (that has likely been charged off, prominent you to believe that you are "untouchable") has come to be big business.
If you are like the majority of American's out there who are being hounded by creditors you likely ignore their calls and letters reasoning they will eventually go away. Wrong. The new breed of junk debt buyers will Serve You With A Complaint Summons!
Marion County Clerk Of Court
What's a junk debt buyer?
Marriage Records, Marion County, Indiana (yr.1942, pt.13); Ministers' Returns for the Board of Health Reported to the Clerk, Circuit Court, Best
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Marriage Records, Marion County, Indiana (yr.1942, pt.13); Ministers' Returns for the Board of Health Reported to the Clerk, Circuit Court, Overview
Title: Marriage Records, Marion County, Indiana : Ministers' Returns for the Board of Health Reported to the Clerk, Circuit Court, Indianapolis, Ind. Apr. 11-May 31, 1929 to June 1944 Volume: yr.1942, pt.13 Publisher: Indianapolis, Ind. Publication date: 1929 Subjects: Marriage records Marriage records Notes: This is an OCR reprint. There may be numerous typos or missing text. There are no illustrations or indexes. When you buy the General Books edition of this book you get free trial access to Million-Books.com where you can select from more than a million books for free. You can also preview the book there.
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There are many, many of these companies and they all go by separate names and aliases. companies can buy charged off debt from your primary lender for pennies on the dollar. It's not uncommon for these debts to be bought & sold over, and over, and over again.
What does this mean?
Well, say you had an old credit card from 1999 that you defaulted on and eventually stopped paying. The primary creditor (Oc) charges off the debt, closes their books and sells Your debt to a third-party junk debt buyer (Jdb). The Jdb pays pennies on the dollar for your debt.
If you agree to decree for even half of the debt (if you are going to pay a collector, all the time negotiate down the debt, they'll often decree for 70% of the primary whole because they are still development Huge profits!) the Jdb is still development an obscene profit off of You.
However...there is Good News if you have one or more of these Jdb's after you. They are banking on the fact that the majority (some appraisal it to be as high as 97%) of Americans who are sued over old credit card debt do not show up for their hearing date and do not try to fight the lawsuit in any way. Even if you do owe the debt, this is the worse thing you can do!
Here's the scoop....
If a creditor has considered that you are a good expectation for paying on your debt and you have failed to retort to their demands for cost you will then be moved to their "legal department".
Many of these junk debt buyers or variety agencies have retained law firms that are basically variety agencies masquerading as law firms. They normally have one legitimate lawyer working for them and the rest of the employees are just plain old variety agents. All these Jdb's have to do is file a Complaint (typically for Breach of Contract) with the civil or district court in the county where you reside. They will pay a nominal fee and a process server to deliver the Summons to you in person.
You Can Be Served At Your Workplace Or Home!
You commonly only have (20) days to retort to the Summons with an Answer, which is a document that must be filed in someone at the courthouse by You and a copy sent Certified Mail, Return Receipt to the attorney representing the creditor.
If you Do Not retort With An retort Within 20 Days (Of The Date You Were Served) a Default Judgement is entered against you And this gives the accumulator the Green Light to frost Your Bank list And adornment Your Wages!
Note: Often the "collection attorneys" are junk debt buyers themselves and certainly own the debt.
Most Breach of covenant lawsuits are filed in civil court, Not small claims. The creditors are smart and know that in the civil courts You must be represented by a lawyer or you can recite yourself buy must corollary thorough rules and procedures of the court. This is called being a "Pro Se" litigant.
A "Pro Se" litigant must file permissible legal pleadings and recite themselves just as a lawyer would. It's certainly quite uncomplicated but you can understand why this scares off so many litigants and why civil judges often spend one or two afternoons a week going straight through complaints and granting default judgements because Very Few defendants know how to/nor have the time to figure out how to retort within the (20) day time-frame.
If a Default Judgement is entered (which happens over 90% in these cases because people don't have the time and knowledge to fight back!) your creditor Automatically Wins The Lawsuit!
The creditor doesn't even have to show up to court and Often Do Not! Your Failure To retort With An retort Automatically Grants The Judgement To The Plaintiff (The Creditor)!
Over 90% of credit card debt lawsuits end in default judgement because the defendant does not appear and/or does not retort with an Answer. This is a Goldmine for the creditors!
They expect you Not To Fight Back and are certainly banking on the fact that over 90% of debtors roll over and accept the judgement. Oftentimes the amounts these companies are suing over have been ridiculously inflated and they have No Records to back up their claims, additionally they are Notorious for violating the Fair Debt variety Practices Act and for trying to get on out-of-statute debts. The statute-of-limitations on debt variety can range from 3 years to 10 dependent on your state's regulations. You can certainly Google the Sol for your state.
If you retort with an permissible "Answer" within the required time-frame (generally 20 days) your chances of their Dropping The Lawsuit are Very Good! They don't want to certainly fight you in court, that costs them time & money. And, they Often don't have any kind of records to substantiate their claims.
When the Jdb's buy debts they receive minimal information. In many cases, the actual credit card covenant you signed (and statements) is unavailable as the primary creditors finished the books on your list years ago. Additionally, You never signed any kind of covenant with the variety agency.....this is other defense that you can raise.
If you're still hesitant to fight back, reconsider this:
They'll be monitoring your credit description electronically....any purchases or even requests for credit will raise a red flag. They will know if you've bought a new car, house, boat, or anyone of value that they can put a lien against.
You Need To Avoid A Default Judgment At All Costs! It Will Ruin Your credit For A Minimum Of 7-10 Years!
The Good News -
I was served with a summons for breach of covenant in May of 2007. I immediately began Researching....And Researching......And Researching.
I'm a middle-class someone who ran up some debt in my early twenties. I made sporadic payments not realizing the detrimental corollary that it was having on my credit report. All told I believe I certainly charged about ,000 on a Visa card. My list was turned over to varied collectors where I would make one or two large payments and then I wouldn't hear anything....and then other one of these collectors would crop up. I eventually stopped paying. The sporadic payments I was development weren't even development a dent as they just kept adding charges onto my balance.
With all the late fees, over limit fees, and interest charges I felt like I had probably paid them well over what I originally owed and at the time I just couldn't keep up. They pretty much dropped off the face of the earth for many years and I forgot about it. I got married, bought a house (with a terribly high interest rate), car, had kids, etc......and then last May some beater car pulls up to my house and delivers me a Summons while I'm outside watching my daughter ride her bike. It was very unsettling. I was being sued for ,000 plus legal fees and I had 20 days to retort with an Answer. The wording was such that I could tell the "collection attorney" staggering me to just accept the judgment.
So, I began my Researching, it's not easy, but So worth it. I began researching at the law library, poring over legal message boards, Nolo law books, and credit mend blogs and websites. I spoke with an highly helpful court clerk who gave me the real dirt on how these companies operate and I was fortunate enough to consult with a buyer affairs lawyer.
All of my work paid off and my creditor dropped their lawsuit.
Regardless of your exact situation, the first step is to File An Answer. Your creditor will either drop the lawsuit or you will be granted a court date. In all likelyhood, the creditor won't show up for the court-date (granting you automatic dismissal) and if they do, you'll be in a better position to negotiate a community or cost plan with them.
Utilize the internet, there are many, many folks in the same boat as yourself. There are many helpful message boards which are a good place to start.
Try to remember that even though the debt is yours, you have every right to have their claims against you substantiated. These companies are development a large profit off of hard working Americans and you owe it to yourself and your financial future to face the music and fight your lawsuit as best you can.
What Happens When You Are Sued Over Old prestige Card Debt?Senate Session 2011-09-19 (16:15:53-17:18:45) Video Clips. Duration : 62.87 Mins.Tags: C-SPAN
