You may have received a letter from Alltran Financial that the company is trying to collect on unpaid debt. Such an experience can be pretty traumatizing and confusing. Alltran Financial may use another agency to take you to court to recoup the money. Chances are you’ve never heard of them before. Still, it is in your best interest to understand your rights as a consumer.
Will Alltran Financial Sue Me?
It’s possible that Alltran Financial, or a secondary agency that partners with Alltran, may sue you. Let’s go through the specifics. What is the explanation for Alltran trying to service some debts and suing for others? We have a theory that states Alltran Financial applies a multi-dimensional approach in deciding whether to prosecute or not:
Do you reside in a state that permits your employer to withhold a certain amount from your paycheck and send it to another party (wage garnishment), or allows levies and liens? In other words, in case you lose the case, can the state impose a ruling against you?
1. There are propensity scoring processes that determine that a person has a higher rating than another person. This explains why there are cases of people unwilling to service their debts, yet they are perfectly able to do so.
2. What are the chances of you losing the lawsuit? Do they have credible information to support the debt? Additionally, what is the number of debts owed, and in case the case is lost, will the court fees be recovered?
3. How old is the debt, and is it close to the statute of limitations?
What can Alltran do to me?
Alltran must abide by the Fair Debt Collections Practices Act (FDCPA). As such, there are things that it can and cannot do. You may be interested to know the debt statutes and garnishment laws vary by state, so we created the calculator below to help you understand what may happen.
If I am sued by Alltran Financial, What is the Next Step?
What I usually advise people who have been taken to court by Alltran Financial or by any creditor is that such occurrences are common, and together, we will sail through.
How does a debt collection case commence? It is when creditors or their legal representation registers a complaint at the state civil court with you as the defendant. In the charge, there will be an explanation of why you are being sued and the amount expected. In most cases, this amount covers the amount you owe, any late fees, interest, legal fees, and all court costs.
You will be served with papers, either by the creditors or their lawyers, as a notification of the case. In other words, you’ll get copies of the court summons and complaint.
If Alltran Financial has a judgment against me, what does it imply?
When you fail to acknowledge the summons, the creditor or their lawyer will appeal for a default judgment. Depending on your state you reside in, the creditor might take the following steps:
- Try to get your bank accounts frozen
- Place a lien on your property
- Garnish your income
It is crucial to honor a summons to avoid some of the scenarios mentioned above. The majority of creditors, including Alltran Financial, will partner with clients and debt settlement companies after the suit has been filed.
In this case, ensure you collect lots of information related to the debt. Usually the party suing you is not always the initial creditor.
Critically check your records and find out:
- If you were given a letter of validation
- Whether you owe the debt that Alltran Financial is stating and is it the correct figure?
- Has the debt surpassed the statute of limitation for the state you live in? If you are not aware of your state’s statute of limitation, hit your favorite search engine or contact me for help.
Apart from acknowledging the lawsuit and responding, there are alternative options you can embrace after being sued by Alltran Financial.
Dealing with Alltran Financial
If you are being pursued by Alltran Financial, you will to ensure you owe the money. Though this might sound inconsequential, it might take longer than expected, especially if the debt goes back a number of years.
It’s correct, you owe the debt:
If it is true that you are in debt, you have four options to choose from. Better yet, we have a calculator to help you select the best choice for your situation. Here are the options:
Honor the Debt in Full
This alternative is not as easy as it sounds. The fact that not many people have lots of money lying around to settle the debt in full makes this option unsuitable for many. Besides, their credit score can already have been negatively affected by this time.
In case you don’t owe much, the money is available, and it is the only debt that you have, you can pay in full. Still, many people cannot fulfill this option.
Pay the Money Before judgment
If you are sued, in most situations, most people prefer to settle the debt before judgment. On that note, you can choose either of three options. All have their benefits and drawbacks.
Before settling your debt account, it pays to take a critical look at your whole debt situation. What if you have numerous unpaid debts and another creditor lines up to be paid after you settle one debt?
In such a scenario, it is recommended that you consult an expert to analyze your credit report and find out if there are any litigious creditors that can take legal action. You can consult any advisors, but keep in mind that we offer this service free of charge. Here are your choices:
Settle the debt personally
1. Advantages: Easily the least costly because there are no bankruptcy lawyers or debt settlement fees.
2. Disadvantages: It is easy to obtain a more expensive rate than the creditor because they might have partnered with the providers in the past, and they understand how low they can charge. This disadvantage can additionally last for the whole period of the settlement because some creditors offer a longer payment duration to pay the debt.
Besides, if there is any previous data, it wouldn’t hurt during the negotiations. Also, you will be kept out of the negotiations, and this might not sit well with you.
Use a debt settlement program to settle the debt
1. Advantages: The fact that debt settlement firms consistently keep tabs on settlement data means that they know how low creditors can agree to go. Besides, a debt settlement services provider should be aware in case the creditor doesn’t want to settle. As you won’t have to pay a dime until they settle, you will not be at risk at all. Also, rather than being in the middle of the negotiations with attorneys from the other side, you can play a silent role.
2. Disadvantages: while you may obtain a substantial discount, you still have to part with some fees. If you are a superb negotiator and don’t mind the tough negotiations, then you can still get the same discount yourself.
Pay the debt through a debt defense attorney/bankruptcy lawyer
1. Advantages: You now have a lawyer representing you and handling the negotiations, and if need be, the lawyer can represent you at trial. This is especially if the debt is not yours or they want to defraud you. Also, many people avoid tough negotiations. Working with a lawyer will give you the luxury of staying on the sidelines.
2. Disadvantages: You have to part with a specific fee for services rendered. Even if you get a considerable discount, we are not sure if you could get a similar discount, even if you are good at negotiating and don’t mind the battles.
If you choose any of the last two choices, knowledge of the fees is vital. The best cost is a fraction of the debt saved as it motivates them to obtain the lowest figure. Also, with a lump settlement, you can bet on getting a superb deal, and the difference can be considerable.
Find Out if bankruptcy works for you
If you are sued or are being pursued for unpaid debt, you can also consider bankruptcy. If you don’t have the money to pay the debts, you have lots of debts, or you expect other creditors to sue you, then this option is right for you.
As you consider this option, you should evaluate if you have other sources of income, assets, and liabilities that would render this alternative unsuitable or too costly. We create a Chapter 7 Means Test Calculator to decide if you are eligible, and a Chapter 13 Repayment Calculator to assist you to know the payment plan to expect in case a Chapter 7 does not work for you.
Take no step and wait for a default judgment to be taken if sued
If you don’t have or there is no chance of getting the funds to honor your debts, speaking with Alltran Financial may be a good idea. You may need additional time to consolidate the money to pay the debt.
In that case, you should file a response to the case. We are equipped and have great experience in this area. If we are not able to assist, then we will advise you accordingly.
What if you don’t owe the debt
If you can confidently prove you don’t have a debt, you can take it to the next level and fight. In other words, you are daring the creditor to prove that the debt is yours. After this, it will be up to Alltran Financial to provide proof, and if they can’t do that, this case can be dismissed accordingly.
Maybe you signed an illegal contract based on fraudulent information. This varies, but you can decide to seek additional help to determine the course your case will take.
In such a situation, you can decide to consult with a trusted debt collection firm. You can contact me if you don’t know any well-established debt collection companies, you are unable to pay for one, or if you prefer representing yourself. There are other options we can explore.
Some Few things to keep in mind
- If negotiations with a debt collection attorney become possible, ensure that you obtain everything in writing. Some creditors include a clause that states that failure to meet the payments might lead to a judgment.
- After the lawsuit is filed and your debt is in the legal system, it means that you have a case to answer. If you try to settle the debt before the claim is filed, you won’t get a lower discount.
Common questions regarding Alltran Financial
Is attempting to settle the debt my best option?
While you are expecting an emphatic ‘yes,’ this kind of situation relies on the facts at hand. For instance, assume that you have unsecured debt of $100,000, and one creditor sues for $20,000 of unpaid debt. Also, let’s assume that you can honor 75% of the debt. Will you be able to honor 75% of the charges in case 4 other creditors follow suit and sue you right after?
How might you mitigate this risk when faced with the possibility of this dilemma? I recommend looking for a person well-versed in reviewing credit reports that will enlighten you on strategies, such as whether your creditors tend to be litigious.
Besides that, never part with money to get a credit report. The government has put measures in place for clients to obtain credit reports from three bureaus once every year. You can check out this FTC government website to guide you to the AnnualCreditReport.com.
The secret to evaluating credit reports is to check particular trade lines and balances connected to the trade lines. You can check out a superb article by Experian titled ‘Understanding Your Experian Credit Report.’
In case Alltran Financial gets a judgment, can they garnish my earnings?
The answer varies depending on the state where you reside. You can learn more about state statutes and garnishment from one of our articles titled when debt collectors sue.
What should I do if a judgement is already in place?
In some cases, a creditor gets a judgment without people being aware. For instance, let’s say you didn’t get the court summons. Some creditors might still proceed to ask the court to pass a judgment regardless of whether you received the summons or not.
In this kind of situation, negotiating with the creditor can prove to be challenging, but it depends on multiple factors. These factors include whether there are chances for liens or levies against your assets or whether your state of residence permits wage garnishment. Also, it depends on the level of faith that the creditor has placed in recovering money from you.
If I am yet to be sued, how can I solve the debt situation?
There are some instances when Alltran Financial prefers to settle debt either through a lump-sum payment or a payment plan before the lawsuit. While you might be contemplating that raising a lump sum amount to pay the debt is impossible, it makes absolute sense.
We may attempt to settle with Alltran Financial to work out accommodating payment plans that will be comfortable to both the client’s pocket and Alltran Financial. You can also achieve the same. If you set up a structured payment arrangement with them today, you will protect yourself from future lawsuits. We are available to offer advice on how this kind of agreement can work in your particular case.
What does Ascend do?
Our expertise is at your disposal. Ascend has perfected the art of assisting people to resolve their debts through one-time payments and payment arrangements. We charge nothing for both emails and conversations. Without first knowing we can definitely assist you with your case, we never promise the effectiveness of any one solution. Please feel free to start a conversation by adding any questions you might have below.