Parents being sued. But debt under dads Name - Oregon

[torrocks]

Got a letter from some bankruptcy attorney, that my parents are being sued for a debt that my dad incurred. The letter literally came the day the docs were filed in court. We live in Oregon. The bankruptcy firm nearly has the same name as the firm that is sueing them. I wonder if this is some kinda of predatory tactic. They have not been served yet.

I read that Oregon is not a community state, so if one person created the debt, and the other person was not on the contract, they shouldn't be held liable? I checked my mom's credit history, and her credit score is in the 800's. My dad's is in the gutters. All his discharged debts don't show up on my mom's account history.

I want to protect my mom from this, how do I proceed? I'll help them respond to the summons, and probably will work on discovery to figure out if she is indeed on the contract. If she is not, is there a way to throw the case out, because they included my mom's name in the lawsuit? Some kinda error on their part. Or I am assuming I can use this, to get the upper hand probably settle on my dads debt at a huge discount.

I am dealing with a company called Andersons and Associates Credit Services LLC. Likely a junk debt buyer.

[BV80]

6 hours ago, torrocks said:

Got a letter from some bankruptcy attorney, that my parents are being sued for a debt that my dad incurred. The letter literally came the day the docs were filed in court. We live in Oregon. The bankruptcy firm nearly has the same name as the firm that is sueing them. I wonder if this is some kinda of predatory tactic. They have not been served yet.

I read that Oregon is not a community state, so if one person created the debt, and the other person was not on the contract, they shouldn't be held liable? I checked my mom's credit history, and her credit score is in the 800's. My dad's is in the gutters. All his discharged debts don't show up on my mom's account history.

I want to protect my mom from this, how do I proceed? I'll help them respond to the summons, and probably will work on discovery to figure out if she is indeed on the contract. If she is not, is there a way to throw the case out, because they included my mom's name in the lawsuit? Some kinda error on their part. Or I am assuming I can use this, to get the upper hand probably settle on my dads debt at a huge discount.

I am dealing with a company called Andersons and Associates Credit Services LLC. Likely a junk debt buyer.

Before your parents can make any decisions, they need to be served so that they can get details of the debt from the complaint.  Read the OR laws to determine what constitutes proper service in your state and what documentation, if any, must be attached to the complaint.  

[Clydesmom]

9 hours ago, torrocks said:

I am dealing with a company called Andersons and Associates Credit Services LLC. Likely a junk debt buyer

Not likely.  A quick google search reveals that it is a small company with 3 employees and about $100k in assets.  More than likely this is either the law firm representing the creditor or a collection agency or both.  Some law firms are registered as collection agencies as well as litigation firms.

Until you see who the Plaintiff is and how the case is filed you won't know for certain.

9 hours ago, torrocks said:

I want to protect my mom from this, how do I proceed? 

Since you are not listed on the lawsuit you are free to go down there and review the case file(s) and possibly get copies without their being served.  It could be helpful in developing a strategy by seeing what they have now.  The other primary thing to do right now is get Mom's name off all joint accounts.  She needs to start banking somewhere different than Dad and without his name on the accounts.  That way if he does get judgments their money is not co-mingled and they cannot levy her accounts for his debts.

9 hours ago, torrocks said:

I read that Oregon is not a community state, so if one person created the debt, and the other person was not on the contract, they shouldn't be held liable?

While Oregon may not be a community property state as far as assets go that doesn't mean there are not statutes on the books that make debt acquired during a marriage a marital problem.  There are some states that have laws on the books that state debts acquired during a marriage that are in support of the home, health and maintenance are the responsibility of both husband and wife regardless of who opened the account.  That said, if the creditor suing is Bob's Bait Shack where Dad opened a store credit card for his fishing gear, bait and trips then that would not be a marital debt as it has nothing to do with the home, health care, or maintenance of the family.  If the debt(s) are for health care, food, clothing etc. it gets more difficult and could require the assistance of a good consumer attorney to get Mom fully protected.  As you said first you need to determine that they are not joint accounts.  If Dad listed her as an authorized user she is not responsible for the debt.  

9 hours ago, torrocks said:

If she is not, is there a way to throw the case out, because they included my mom's name in the lawsuit?

ALL of this is hypothetical at this point but if it was not a joint account or Mom didn't sign any contracts for loans etc. then that is a basis for dismissing HER from the lawsuit as not being a party to the debt.  It would not be a basis to have the entire case dismissed.  If it were me and all documentation points to this being a one party problem I would get Mom dismissed then turn attention to getting Dad as much help as possible once Mom and her assets were protected from the creditors.  

[HueyPilot]

11 hours ago, torrocks said:

Got a letter from some bankruptcy attorney, that my parents are being sued for a debt that my dad incurred. The letter literally came the day the docs were filed in court. We live in Oregon. The bankruptcy firm nearly has the same name as the firm that is sueing them. I wonder if this is some kinda of predatory tactic. They have not been served yet.

 

I am dealing with a company called Andersons and Associates Credit Services LLC. Likely a junk debt buyer.

1 - These lawsuits in Oregon are not really much fun and are time consuming, however is most cases are winable. I would first contact Bret Newtson, who is a bankruptcy attorney and credit card lawsuit attorney who has a passion for filing Oregon caselaw and fighting junk debt buyers. (503) 846-1160. He will charge you a minimal amount for a consultation and help you with strategy.

2 - It's critically important to get a jump on these cases immediately. If there is a suit in place get the case number from the Court Clerk. File an answer immediatly to let them know you are serious going to oppose any action and deny all allegations. Most JDB's are looking for a quick motion for summary judgment to start attaching assets. Depending on the kind of debt this is and/or the amount, there may be provisions for settlement by arbitration with AAA or Jams. See forum for procedures. 

3 - This forum currently favors private arbitration and will help you with ideas on how to craft your answer to the complaint and suggestions on best practices to eliminate this suit or settle for minimal amounts. Additionally we all have had similar legal challenges and have won. One thing here in Oregon is the Courts have manditory court applinted arbitration and you want to avoid that if any way possible. Most importantly - DON'T ADMIT ANYTHING!!!!