People in financial difficulty here in New Jersey often get sued
by their creditors to collect their debts. These suits usually lead
to judgments because people don’t think they can fight them or try
to fight them based on an inability to pay defense and lose.
But sometimes there is a basis to fight a lawsuit, but people
don’t know they have it. More and more in this country it has
become the practice of creditors to sell their claims to debt
buyers in order to get “half a loaf” in terms of money and avoid
the hassles of collection efforts. Companies like Midland Funding,
LVNV Funding, Cavalry Portfolio, and New Century Financial will pay
a fraction of the balance on a huge number of claims and then bring
suit to collect for large profits.
If this is happening to you, then you need to consider whether
you want to fight any claim they bring. In this episode, I talk
about what defenses you may have to a debt buyer lawsuit, and how
they can help you.