Will sending a debt validation letter speed up a potential lawsuit from a collection attorney? I recently got a letter from a local CA that said "at this time, no attorney with our firm has reviewed your case, but if we don't hear from you, blah, blah, blah". At this point, I am not working and my husband is taking me off of our bank account so they don't have those 2 things to go after, BUT, I do own 3 acres of lakefront property that I inherited a few years ago. Do you think the CA knows about the property? And should I bluff the CA with a "judgement proof/collection proof"? Or would that give them a reason to further investigate my assets if they haven't already done so? What do you think?
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If you inherited the property and it's in your name, it's easy to find.All information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event....... -
If you aren't judgment proof, then don't bluff it. They can find out online if you are bluffing rather easily.
You have assets to protect. You had better go see a bankruptcy attorney.The world's simplest C & D Letter:
"I demand that you cease and desist from any communication with me."
Notice that I never actually mention or acknowledge the debt in my letter.Comment
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I can't file bankruptcy. The land I own is worth about 60k so I would have to file a chapter 13. There's no way I can pay anything. I'm not working. They would get the land. I've already been advised by an attorney to sale the land or get a loan on it and that's what I'm trying to do right now. I put it up for sale with a real estate agent this week and applied for a loan on it yesterday.
But, what about this, they're only trying to collect $2800.00. Will the judge force the sale of my property to pay such a small amount? And what about the debt validation letter? Will that put them in high gear? The real estate agend said I could probably sale the land pretty fast since I've listed it below the market value. I'm just trying to buy some time here and I'm not sure what route to take.Comment
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From the sounds of the letter you received, they are just in the first stages of trying to collect. You should have time to work on the sale of the property.
No one is going to "force" the sale of the property. If the ca sues you, wins, and gets a judgement, they might place a fifa on the property. That does nothing except place a lien on the property that must be satisfied when it is sold.
Therefore, don't loose any sleep over it. You can always satisfy the fifa when you are in better financial shape.All information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event.......Comment
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I would be careful, it is possible for a creditor to force sale of a property to satisfy a judgment, especially if you are talking about raw land (normally not a homestead).Originally posted by frogger View Post
Otherwise any busted real estate developer would just sit on land forever. Doesn't happen. Eventually the note holder takes it.
It all depends on state law.
Your best bet may be to sell the land or transfer it to someone else who wants to have it, then ride out the 2 years (for an insider preference) before you can file for bankruptcy. As long as you don't have a judgment against you it's much easier to fight a claim for fraudulent conveyance. (outside of BK)filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!Comment
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I went through collection hell, and I never sent a single debt validation letter, I honestly don't know that it does anything.Take $10 billion from the government and then sue me...nice
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I sent one to a CA collecting for the OC (GE MOney sends to collectors at the 90 day range) and they bounced it back to the OC. THe OC admitted that they do not have a signed application/contract for me. So it can be good for finding out what they do NOT have.First consult: You go now, no CH 7 for you. You spent entire buffet. 13 has a 95 percent payback. (Owwwch) On to next consult....Comment
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The OP inherited the land, therefore I am assuming that it does not have a lienholder.Originally posted by catleg View PostAll information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event.......Comment
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Yes, but the judgement holder can cloud the title and convert the judgment into a judgment lien and then foreclose on the property.Originally posted by frogger View Post
That takes quite a while to accomplish, and it sounds like the creditor is just really starting to collect. There are lots of ways to derail the collection if the OP can not pay at this time. Look at this link for a few ideas: http://debt-consolidation-credit-rep...ce.com/forums/ In that particular forum, there are quite a few people that have turned arbitration around against the creditor. The OP might want to research the possibilities.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way..Comment
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I own the land free and clear, but as of right now, I'm trying to get a loan on it and I also have it up for sale with a realtor. I'm just wondering if sending them a debt validation letter will speed up the process of a potential lawsuit. If I get the loan, I plan on settling with them so it won't really matter. If I can't get the loan or can't sale it since the market is down right now, then I guess the creditors will get the land, right?Comment
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You're not even close to that happening. There is much due process and red tape before this starts to happen.Originally posted by whyme View PostAll information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event.......Comment
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