Consumer Lawyer Gives Bad Advice on Debt Collection Case Loss
A bankruptcy attorney recently wrote an article for a legal site discussing what consumers should do if they actually lose a debt collection case (you know, other than obeying the court and paying the debt). The advice is as predictably self-serving as it is incredibly bad.
Attorney John Skiba (whom we’ve mentioned before) published an article this week on legal blog site JD Supra called “4 Strategies if You Lose Your Debt Collection Lawsuit.”
First of all, Skiba claims that any consumer losing a debt collection lawsuit deserves another chance, because any judge ruling for a creditor/collection agency/debt buyer is just probably wrong because debt buyers are the worst.
But if you should happen to lose to an ARM attorney, you should definitely appeal the decision. If you can’t formally appeal, then just ask the judge to reconsider, because they were probably wrong in the first place and you might be able to talk a judge into admitting that, according to Skiba.
If that doesn’t work, then just try to settle with the creditor/agency. After all, they’d be totally willing to sacrifice money legally owed just to get it earlier, right?
The first three bits of advice were probably intentionally bad to drive people to the last one: file for bankruptcy protection. Now, Skiba is just giving advice here. The fact that he’s a consumer bankruptcy attorney has nothing to do with this advice, I’m sure. Even if he had previously written articles titled “Debt Collection Lawsuit + Delay = Bankruptcy” and “Nuke It! Eliminate Your Debt Collection Lawsuit through Bankruptcy” that also appear on the site.
And the way he frames the suggestion of bankruptcy is just gross. He suggests that it’s the perfect way to “ruin their day,” (referring to debt buyers). Because that’s how most microeconomic decisions should be made: on the basis of which offers the best vengeance.
How often to you see consumers filing bankruptcy after a judgment is entered? Is this a common practice?
It’s been awhile, so I don’t remember the particulars, but I remember a case years ago where it was written into the decision that the award amount couldn’t be discharged in bankruptcy. I don’t think that it was anything detailed, just written and agreed to by both parties.
It is very common for a consumer to file for bankruptcy after a judgment is entered against the consumer. The bankruptcy petition stays collection of the debt and the debtor can likely discharge the underlying debt.
It seems your spin on the article is grounded in the fact that most consumers who are sued over a debt actually owe it. And, they probably do.
However, in this country we don’t have a justice system, we have a legal system.
Once a creditor makes the choice to use that system to enforce their rights, it’s only logical that they be expected to play by the rules.
In my jurisdiction, most collection cases are handled by magistrate judges, many of whom have no legal education or background. They spend their days granting default judgments by the dozens, and are often ill-prepared to oversee a case that actually does go to trial.
There are collection attorneys who are just as ill-prepared going to trial as they spend the same amount of time obtaining those default judgments.
I’m not saying that every successful collection suit should be appealed. However, if there are grounds for an appeal because someone chose not to follow the rules, or worse yet, doesn’t know what the rules are, then there should be an appeal. That’s why appellate courts exist.
All I am saying is if this is your game of choice, know the rules of the game, and be prepared to play by them.
I’m interested in a citation to Mr. Lindala’s case, because I do not believe the parties can compromise an individual’s right to file bankruptcy under Federal law unless it is excluded in general, for example taxes, student loans, child support, fraud etc.
With respect to Mr. Rowland’s comment, a bankruptcy petitioner must move the court to discharge the judgment while he simply lists the underlying debt as a creditor and it is automatically included (subject to the above examples of exclusions).
I Bought a file that originated with a credit union in the northeast.
The contracts were (signed under seal) and not dischargable through bankruptcy.
I was never sure if it was fact or fiction, although it clearly stated in the contract that both parties agreed it was not dischargeable in bankruptcy.
i never had opportunity to find out for sure if it was enforcable.
Is this what were talking about?
Is E. Normis Debtor the screen name for John Skiba? Ridiculous argument! Thanks for playing E.
@BHA: fiction