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About Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

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Collections Law - credit

Expert: Regan Shinski - 10/29/2009

Question
i have been in a debt settlement program for a year now, and have settled my largest and smallest debts. While saving money for other settlements one of my creditors are suing me. I was kind of under the impression, after talking to several companies, that i really needed to complete these settlements before the 3 year mark, because after that I may be sued. Well its only been 1 year and I'm already being sued. I'm more than a little unhappy because I still have 4 accounts to settle. I have been assitted in preparing the answer, although it was not by an attorney. The debt settlement company told me to answer but also said they would start negotiations with this creditor in the next couple of days, I would do almost anything to make this go away, including monthly payments. I was advised by debt settlement company that would defeat my purpose as far as saving for settlements and I would pay full amount due with no interest charges, as opposed to a settlement. What should I do? I am very tired of making bad decisions with good intentions and need advice how to proceed. I thank you for any help and appreciate your time volunteering to help people like me!

Answer
Hi Laurie:

Let me start by saying congratulations on the attitude and determination to get this fixed and your success so far. There will be bumps in the road but you usually have options, so don't get discouraged.

Some of this really depends on amounts and your ability to pay them back and how fast. If you are talking about $50,000 in debt and you make $30,000 per year, I still think bankruptcy would be the answer. This is an extreme example, but I hope you get my point. If the debt is large and income not enough to rapidly pay them off, you can still consider this option - as unappealing as it may be. I'm guessing your credit is already hurt badly. BK would at least allow you to start rebuilding immediately as opposed to keeping delinquent accounts reporting monthly for several more years. I'm assuming that's not the case here but I had to throw it out there. In general, I am NOT a fan of BK except in cases like I outlined above.

I am also not a fan of debt settlement companies because they only do what you can easily do yourself - and charge you for it. As an owner of a credit REPAIR company, I cannot tell you how many times I'm had to patch up the credit reports of people that used these companies. However, it sounds like you have had some success with the one you are using, so you may be a rare exception. I wouldn't want to talk you out of their services if you are comfortable with them.

You can choose to fight the lawsuit. This is a complicated process but it has worked fairly well in the past. It involves a combination of delay and countersuit techniques. Filing motions to dismiss based on how you were served, the use of depositions, interrogatories, and related procedural maneuvers are used. Countersuits under the FDCPA, FCRA, and state laws are also used. The idea is two-fold: First make it so cumbersome for them legally that they spend more time, effort, and money than it is worth to collect your judgement. Secondly, to use THEIR violations, and the penalties and damages that come with them, to offset any debt you owe. I can't answer what the next steps would be in your case without knowing more details but at least know it is an option. You would have to start this fairly quickly.

Another option is to use the time before the court date to negotiate a deal. This is not the best time, but it is the best time you are going to get right now that they have filed. Because they have filed, they have spent time and cost to do you. You are going to need to put a decent amount down to at least cover their court costs and enough to give up their big hammer - which is the threat of a judgement. If you are in a position to give a decent down and some terms, it can be done. The threat of filing bankruptcy is your biggest threat against them. If they think you may file bankruptcy, you have a better chance because in BK they would get nothing. Make sure any agreement is in writing to dismiss the court case BEFORE sending any money. Follow-up and make sure the court case is actually dismissed. If it's not, show up to court and show the agreement and it should be dismissed.

You can do nothing. A judgement will be entered against you. This gives them the option to collect it which may include garnishing wages, placing liens on property, attacking bank accounts, and even taking personal property for sale at auction. All these collection techniques usually have restrictions, but they are possible. Therefore a judgement is not really recommended.

When you say you filed out court paperwork I'm assuming you are just talking about your reply for the court to the complaint. If it is the plaintiff asking you written questions, you should find out if that is legal at this point in your jurisdiction. In ANY document, you should be very careful about admitting guilt. Some documents you complete become stipulated fact that you cannot argue with down the line. So be careful in your answers. You should also be careful in what you say or write if you are trying to negotiate a settlement.

I don't which option is the best for you since I don't know all the details. You really have to make that decision anyway but I hope I gave you some options and insights to how you can proceed.

Good luck,

Regan
mbscompany@aim.com
813-454-1459

p.s. I'm a credit repair guy, so I belive strongly in it but you REALLY should start that immediately on all accounts. Credit repair can lead to FDCPA violations, which lead to fines for the creditors, which lead to the offsetting of YOUR debts. They also clean up your credit faster. Please call or e-mail me if you are interested. Services range from $49 and are never more than $299 for a full year. Results guaranteed with money-back, written contract.

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