if DV letter initiates suit, can I still negotiate

[jenmiller]

I read another post where someone sent a DV letter and in return the CA filed suit. If this happens will I lose my ability to negotiate the amount owed once a suit has been filed? I also read that it is possible to go back and attempt to settle with the original creditor. I am nervous as my debt amount is over $30K and the CA letter offered a 50% settlement, which a) I can't afford anyway and I don't want to pay since creditor had already written off debt and reported to CA's. I'd also like to know what the courts can do to collect on a judgment. Do they have rights to my assets despite the fact that this was unsecured debt? Any advise?

[LostMind]

I read another post where someone sent a DV letter and in return the CA filed suit. If this happens will I lose my ability to negotiate the amount owed once a suit has been filed? I also read that it is possible to go back and attempt to settle with the original creditor. I am nervous as my debt amount is over $30K and the CA letter offered a 50% settlement, which a) I can't afford anyway and I don't want to pay since creditor had already written off debt and reported to CA's. I'd also like to know what the courts can do to collect on a judgment. Do they have rights to my assets despite the fact that this was unsecured debt? Any advise?

Jen, I'm sure the pros will respond soon but take some time and read through the boards and you will learn that you can fight this and there is always an opportunity to settle but you need to show a strong defense so you can negotiate from a position of power.

I think one of the most surprising things I've learned is "unsecured debt" means nothing when you get to court, they can go after any non exempt assets to satisfy what you owe. I think this immediately triggers something in everyone that sends them into panic mode which is the intended effect and it probably works to the defendants advantage as it helps them focus on what they need to do moving forward to resolve these actions.

I think its pretty clear though that they pursue the debtor in this order:

1. Agree to a payment plan to resolve debt (this could be after judgement).

2. Garnish wages and or bank accounts.

3. liens on personal property and then possible seizure and sale by Sheriff.

Just keep reading and learning to empower yourself. Knowledge will give you power to not be helpless in the process.

Edited October 18, 2010 by LostMind

[tropicaljo]

It's my understanding that if you DV a CA, then they are barred from further collection activity until they provide you with validation of the debt, simply put, the name of the original creditor and the amount that the creditor is claiming you owe. Filing a suit after receiving a DV is considered, I believe, as "further collection activity".

While Lost Mind is correct in the desires of the CA's to knock you off balance and get you to react they way they want you to, however, you are a looooong way from any negotiating settlements, judgments, garnishments, or liens after receipt of the first dun letter. Stay calm and spend a lot of time reading the information you need here at CIC. This place and these people are a wonderful wealth of knowledge!

[Tootsie88]

I read another post where someone sent a DV letter and in return the CA filed suit. If this happens will I lose my ability to negotiate the amount owed once a suit has been filed? I also read that it is possible to go back and attempt to settle with the original creditor. I am nervous as my debt amount is over $30K and the CA letter offered a 50% settlement, which a) I can't afford anyway and I don't want to pay since creditor had already written off debt and reported to CA's. I'd also like to know what the courts can do to collect on a judgment. Do they have rights to my assets despite the fact that this was unsecured debt? Any advise?

you have this as your weapon

This validation, strict proof and verification are made in accordance with federal law. Should your agency respond to my request for validation, strict proof and verification requests with a summons to appear in court, I would like to inform you that there is a precedent which states that “a collection agency cannot file suit against you if they haven't validated the debt within the initial 30 day period.” Cited case below:

Spears vs. Brennan The appeals court determined: "Brennan (plaintiff collection agency attorney) violated 15 U.S.C. § 1692g( when he obtained a default judgment against Spears (defendant) after Spears had notified Brennan in writing that the debt was being disputed and before Brennan had mailed verification of the debt to Spears."

Case closed! Make sure you state that in your Answer to them and make it the 3rd or 4th numbered response.

[Recovering Attorney]

PLease drop the " strict proof" language. I know it is used in pleadings in some jursidictions, but in a DV it sounds like -no offense- someone who has spent a latet night on the computer. Second, Spears vs Brennan has no real bite after 15 USC 1692g( was amended in 2005 to explicitly prohibit collection action in the face of a timely DV. It is enough to quote the statute.

There is no "gotcha" in debt validation. Simple works just as well, in my experience.