Hired a lawyer

in palnet •  5 years ago  (edited)

Turns out I'm being sued for an unsecured debt. I did some research on this and it seems to not be common practice, but funny thing is that more often times than not, the bank wins.

Why? Because the defendant doesn't answer the summoning. This of course won't be my case, but I won't lie. This feels like a bucket of cold water.

I'm always reminded of that saying "banks never lose" but I hope that this time I'm the exception.

MenO

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Let's hope for the best and we can do a better thing without including a banks in it.

Wow! Not cool! It must be a lot of money for them to go after you like that?

This kind of makes we worried because I also have a bunch of credit card debt that was picked up by collections. I let my credit rating tank from like the 700s to the 400s.

These guys buy debt at auction for like 3% of the total. Sometimes I feel like I should call them up and lowball them so I can start to rebuild my credit. Either that or I have to wait 7 years or whatever for the statute of limitations to kick in.

I was kind of doing the same, but they are doing this for 8k - Now, 8k might be a lot in some countries, but in 'merica as you know, it's nothing life changing.

Apparently it happens for even smaller amounts, its just a matter of drawing the shorter straw.

That's such bull shit because you know they bought that debt for less than $400 and they are going to pay a lawyer to come after you now? Those are some razor thin profit margins on that business model. What a dick move.

The originating bank can sue because they have standing. Debt collectors, who buy bad debts at a steep discount, cannot sue as they have no standing in court.

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So this debt wasn't sold to debt collectors is what you're saying?

Correct. Often, they prefer to sell off the bad debt and write off the loss. In this case, they are using the legal option.

Fighting and winning costs attorney fees. Most attorneys in these types of cases want payment up front.

Fighting and losing costs attorney fees and a judgement.

The attorney could easily cost more than the debt.

Simplest is to have the attorney try to negotiate a settlement and avoid court.

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meep

I'd like to live in your America where 8k isn't life changing lol. It sure would change my life!

i meant it more in the context of a Bank's business... To me 8k is big sum, more so at this point in my life.

Ahhh gotcha, makes sense 😉

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That really sucks, Meno. :( I hope everything turns out well for you. Anyone who would sue you is a jerk.

Banks don't always win. There have even been crazy cases where the cops have been called to act as liquidators for the court due to banks not paying in a timely manner after losing.

Unsecured debts typically don't go to lawsuits because the balances are low. Even if the bank wins, which like you said they usually do, the attorney costs aren't worth it.

Higher balance issues do get to the lawsuit stage.

The good news is that lenders break laws all the time, so a lot of people who do defend themselves win.

This reminds me of John Oliver's video on debt collectors:

Great photo @meno and I'm on your side in this battle with the bank!

I believe you are the defendant in this case not plaintiff.

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Thank you for that ... ;)

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Funny thing is I also just got served for a debt as well.

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you gotta be kidding me... wow...

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