Discouraging or delaying debt collection lawsuits

[womanonfire]

I just noticed a soft pull from LexisNexus on my report which tells me someone is looking at me, probably trying to figure out if I'm worth the time and expense to sue. If anyone is interested, here is a link from their website: https://risk.lexisnexis.com/financia...s-and-recovery.

I wonder if there is a way to get a copy of this report for yourself? I would love to see a sample of one.

Would it be helpful to write to each of my creditors and tell them of my eventual intention to file bankruptcy because of insolvency?

[justbroke]

Yes you can get your LexisNexis report. They have a link where you can obtain a copy of your report (I think once a year). I just received mine.

The LexisNexis report has lots of information including your public records, driving records, insurance records, and property owned (including vehicles). If you are not paying your bills, then a creditor is likely looking to see if you have assets. A creditor will typically perform this type of asset check in anticipation of filing a lawsuit.

It is never helpful or advised to tell creditors that you will file soon. That just sends them running to the courthouse steps so that they can obtain a judgement and then file that judgement. When the judgement is filed, it then becomes a secured debt. Depending on the property to which it attaches (in your State), that could complicate things.

So, don't tell them! If you must talk to a creditor, only tell them that you can't pay now. Never offer a date on which you can pay, or offer to make a payment when you know that you can't/won't. They will pressure you somewhat to provide a date that you'll pay, but you should not do so. Just tell them that you're having financial difficulty and you don't know when it will be resolved. Given today's climate -- and pandemic -- just reference the pandemic and the uncertainty.

[womanonfire]

It is never helpful or advised to tell creditors that you will file soon. That just sends them running to the courthouse steps so that they can obtain a judgement and then file that judgement. When the judgement is filed, it then becomes a secured debt. Depending on the property to which it attaches (in your State), that could complicate things.

That really makes no sense because then the company has wasted time and resources suing someone that can stop the pending lawsuit in its tracks with a bankruptcy.

Should I dispute or ignore incoming letters, cease and desists I heard piss them off. Letting them know that I will fight them? Challenge them with harassments and revoke permission to call cellphone? The latter helped me settle a TCPA lawsuit before with another creditor.

Anything that might help would be useful.

[justbroke]

That really makes no sense because then the company has wasted time and resources suing someone that can stop the pending lawsuit in its tracks with a bankruptcy.

It may not make any sense on the surface, but if the creditor receives and records the judgement, it can and will attach to property. Hence the term "running" to the courthouse steps. They want to get the judgement before your case is filed. Think of it as calling your bluff.

To what extent that a judgement lien attaches and to which property it can attach is State specific. However, they become a secured creditor. Unless the judgement impairs an exemption, you are stuck with that judgement being attached to your property. First rule of bankruptcy, all liens pass through bankruptcy unless voided (with some exceptions).

That is exactly why you don't force a creditor's hand and send them running to the courthouse steps to beat you filing a bankruptcy. A judgement creditor is very different than an unsecured creditor. This means that the debtor is either stuck with the lien, or may be able to file a Motion to Void Lien of Secured Creditor where the lien impacts an exemption. One such impairment could be the exemption on household goods/furniture. But this is only to the extent that the judgement impairs the exemption. What about the exemptions for a vehicle or real property.

I have never done C&D letters but have asked that they not call my cell or work phone. That's about the extent. If you're trying to delay being sued, I can't tell you what works and what doesn't work. I know that telling them that you're going to file bankruptcy "may" send them running to the courthouse steps to obtain a judgement and then a judgement lien.