Are you being sued by a Junk Debt buyer? A majority of debt lawsuits involve the purchase of large quantities of “Junk Debt.” Junk Debt is debt that the original creditor has given up hope on recovering from the debtor and sells to a debt collection company for significantly less than the amount of the debt.
For example, Visa may have twenty million dollars of credit card debt owed to them that is past due, which payments have not been made on them for some time. Visa will sell that debt to a collection company such as ABC Debt Collection, Inc. (“ABC Collections”) for and as little as only two million dollars. So an individual debtor whose account is included in the sale that owes visa $9,000.00 will have is debt purchased for only $900.00. ABC Collections will then sue the debtor for the entire amount of the debt ($9,000.00).
Collection companies are regulated by the Fair Debt Collection Practices Act and are limited by the means they use to collect from a debtor. Since these companies paid a fraction for the debt, they are willing to accept significantly less than the original value. In the example above, since ABC Collections paid $900 for the debt they may be willing to accept $1,500.00 for a debt that was originally $9,000.00.
Ignoring or failing to respond will result in a Default Judgement against you and allow the collection company to garnish your paychecks, bank accounts, and obtain your personal property to be sold. Even if you owe the debt being sued upon, there are many defense that will result in the lawsuit being dismissed. The Law Offices of Shaya Markovic, P.A. fights collection companies and aggressively defend against these lawsuits. There is no fee for your evaluation so contact my office now at (786)529-2176.