I am broke and have a lot of credit card debt. Should I fight?

If you have credit card debt that exceeds $100,000 and you’re insolvent or have very little money, should you fight debt collectors, try to settle, or just give them a judgment?

If you’re in this position, it might make sense to fight. In fact, in a way you are in the perfect position to fight and win. This is why. Although the amount owed is large, a victory for debt collectors will likely bring them little or nothing. That means they have to invest a lot to get just a little, even if they win. Oddly enough, if you spell it all out for them and offer them the most you can pay or what they can charge (probably less than five cents on the dollar), they almost certainly won’t accept. It’s too little for them to let him go for that amount. On the other hand, if you fight and they have an idea of ​​what your assets really are, they will probably drop the case for nothing. Like I say, weird, but that’s exactly what clients tell me all the time. It may have more to do with the lawyer’s ego than anything else, as no one wants to settle for such a paltry amount; however, it is even more useless to spend thousands of dollars for nothing.

But from your perspective, it makes a lot of sense to fight. You have nothing to lose at this point. It is almost certain that the defense will not even increase the amount of the judgment, much less the amount collectible. But if you don’t fight, you will have a great judgment hanging over you for ten or twenty (or even more) years. You’ll never get your head above water. In many states, that judgment automatically results in a lien on all real property (land). So that could be a huge hassle for you, even if it gained them little to nothing. And it’s always worth noting that if the wrong company is suing you and you give them a judgment, you’ll probably still be liable to the company that had the right to sue you (you need to make the company show that they have the right to sue you). ). Even on legitimate debt, debt collectors often add illegal fees or charges.

Since your assets are so low, a lawyer may be out of the question, so it might make sense for you to handle this on your own. And this is not rocket science: you can do it. The dollar amount MAY (but surprisingly not always) make the company a little more reluctant to drop the lawsuit if you fight, but the same economic considerations of a case seeking a much smaller amount of money will come into play eventually. . And there’s a not inconsiderable chance that they don’t even have (and can’t get) the things they need to beat you. That is, you can have a good chance of winning even if they fight.

Of course you’ll want them to know you don’t have assets at some point, but I’ve always found it more effective to have them work for it. Perhaps this is because they will believe you more if they have to pay (their lawyers) to get the information than if you give it to them for free.