You’re Never Too Poor To Be Sued By A Debt Collector

You’re Never Too Poor To Be Sued By A Debt Collector

You're Never Too Poor To Be Sued By A Debt CollectorDangerous assumption one — I’m too broke to be sued

“I don’t have enough money for debt collectors to sue me.”

“So and so said that collectors only sue you if your credit report shows you have a lot of money.”

I have met people who truly believe this and they are shocked when they get sued by a debt collector.

Dangerous assumption two — being broke will stop the lawsuit

But then they think “I’ll just tell the collection lawyer (Zarzaur or Nathan or Moxley, etc.) that I’m broke and they will drop the case.”

We explain “No, they will still get a judgment against you.”

This is met with “That’s crazy — what good will a judgment do against me?”

“What’s the harm of a judgment if I don’t have much money?”

Let’s think this through in case you have had these types of thoughts:

  • A judgment usually makes a lot of interest every year and will  doubling before you know it and then will keep growing;
  • Bank accounts that are yours can be wiped out unless you only have exempt funds in there;
  • Your home or car or other posessions can be sold at a sheriff’s sale for much less than the actual value of your possessions;
  • Your wages will be garnished at 25% of your after tax paycheck — can you really live on 75% of your takehome?; and
  • The judgment stays on your credit report and harms your ability to get credit in the future.

If you are sued by a debt collector or even simply contacted by a collection agency, don’t make the mistake of assuming the collectors will leave you alone just because you are going through a hard time right now.

Discover your five options when sued

When sued you have five options.  Not having much (or any) money may make some of these options harder but you still need to think this through.

First option — file bankruptcy.  This costs money and has a long term cost to it but it is possible this is a good approach if you don’t see any way or path out of your financial trouble.

Second option — fight the lawsuit on your own.  If you don’t have any money, this may be the best option.  We have some resources we can share with you if you choose this option.

Third option — settle the case on your own.  Hard to do if no money but it is possible to set up monthly payment plans.  Watch out for the consent judgment trap.

Fourth option — hire us to defend you.  The downside is the cost but if you can afford it, then it may make sense to do this.  And we have some unique programs to help make this doable for you by removing much if not all of the risk.

Fifth option — hire us to settle the case for you.  Like the fourth option — we can explain how we do this so it makes sense for you.

Contact us and we’ll help you figure out your best option

If you live in Alabama and you have been sued by a debt collector, give us a call at 205-879-2447.

Ask to speak to Randi or Carolyn in my office and they will get your information and your story so I can help you design a strategy to deal with the collectors.  

We will help you figure out which of the five options is best for you.

If you prefer not to call, you can fill out our contact form and we’ll get right back with you.

Thanks for reading, and have a great day!

John Watts

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