I Got Sued for $15k After Borrowing Money to Invest in Crypto

On a recent episode of The Debt Hotline, host George Simons met with Yale Levy, a former debt collection attorney and now Solo's Head of Client Relations, to discuss how to settle with debt collectors. A listener of The Debt Hotline, Robert from Ohio, called in to share his story.

Robert thought he had found the perfect investment strategy. With good credit and access to multiple credit cards, he borrowed heavily to invest in Bitcoin mining operations. The plan seemed simple: turn one Bitcoin into two or three through a mining company, pay off the credit cards, and walk away with a profit.

Instead, Robert found himself staring at a lawsuit from PNC Bank for $15,000 in credit card debt—money he had borrowed to chase cryptocurrency gains that never materialized.

"I took a huge gamble. I realize that and I was hoping to get some return way before this, and I wouldn't even be in the situation I'm in," Robert admitted during the episode. "I did the worst thing about borrowing money to invest. I know that's not the way to do it."

Robert's story has become increasingly common as cryptocurrency investment has exploded in popularity. According to Yale Levy, people facing credit card lawsuits after investment losses have several options, but time is critical.

If you're being sued by a credit card company, whether from crypto investments gone wrong or any other reason, here's what you need to know to protect your finances and potentially resolve your debt for less than you owe.

What happens when you get sued by a credit card company

When Robert received his lawsuit papers, he made a critical error that many people make: he sent a debt validation letter instead of filing an Answer document with the court.

"What you needed to file was something called the Answer, and the Answer is a response to a complaint," Levy explained. Without a proper Answer filed with the court, PNC obtained a default judgment against Robert for the full amount plus court costs and fees.

A default judgment gives creditors powerful collection tools, including the ability to garnish wages, place liens on property, and freeze bank accounts. In Ohio, wage garnishment can take up to 25% of each paycheck, a devastating blow for someone already struggling financially.

Respond to debt collection lawsuits fast with Solo.

Borrowing money to invest in crypto carries multiple hidden costs

Robert's investment strategy carried multiple layers of risk that he hadn't fully considered. Beyond the inherent volatility of cryptocurrency, borrowing money to invest amplifies losses dramatically.

Credit cards typically charge interest rates between 18% and 29% annually. For an investment to be profitable when funded with credit card debt, it would need to consistently outperform these high interest rates, a challenging proposition even for experienced investors.

Robert had already paid off one $26,000 credit card debt by refinancing his house. Now facing another $15,000 lawsuit, his total losses far exceeded any potential cryptocurrency gains.

You must respond to credit card lawsuits immediately

The most important step when sued by a credit card company is filing an Answer document within your state's deadline. This prevents a default judgment and gives you time to negotiate a settlement.

Robert's case demonstrates why proper legal response matters. Because he sent a debt validation letter instead of an Answer, PNC obtained a default judgment. Now Robert needs to file a motion to vacate judgment, a more complicated process that isn't always successful.

"You need to make sure that that Answer was filed," Levy advised. "If it was not filed or was filed in the wrong case, you need to go down to the court and write up something called a motion to vacate judgment."

Settlement is often the best outcome for credit card debt

Even after a default judgment, settlement remains an option. Yale Levy recommends communicating immediately with the plaintiff's attorney to negotiate terms.

"Settlement for 80% is so much better than getting a judgment taken against you and having a lien put on your house and maybe a wage garnishment filed against you," Levy explained.

Most credit card companies and debt collectors will accept settlements between 70% and 90% of the original debt, often with monthly payment plans over 12 to 24 months. For someone facing financial hardship after investment losses, this can provide manageable relief.

Let's consider an example.

Example: Marie borrowed $12,000 on credit cards to invest in cryptocurrency. When the investment failed, she couldn't make minimum payments and was sued by her credit card company. She used Solo to file her Answer within the deadline, then offered to settle for 75% ($9,000) with monthly payments of $375 over 24 months. The credit card company accepted, Marie avoided wage garnishment, and she resolved her debt for $3,000 less than the original amount.

Ignoring credit card debt leads to devastating consequences

The consequences of ignoring a credit card lawsuit can be severe and long-lasting. Post-judgment remedies give creditors significant power to collect debts involuntarily.

Wage garnishment can take up to 25% of your paycheck in most states. Unlike voluntary settlement payments, garnishments happen automatically and give you no control over timing or amounts.

Bank account attachments allow creditors to freeze and withdraw money from your savings and checking accounts. This can happen without warning, potentially bouncing checks and causing additional financial chaos.

Property liens can be placed on real estate you own. While creditors typically can't force immediate sale of your primary residence, the lien on the house must be satisfied before you can sell or refinance.

All these consequences happen involuntarily, removing your control over the repayment process.

Use digital tools to negotiate settlements

Modern debt settlement has evolved beyond stressful phone calls and emotional confrontations. Digital platforms like SoloSettle eliminate common frustrations like being stuck on hold, playing phone tag, or dealing with high-pressure tactics during emotional conversations.

Instead of relying on verbal agreements that can be disputed later, these tools document every offer and response in writing. This creates legally binding settlement agreements that protect both parties from future disputes, documentation that proves invaluable if questions arise about payment terms or settlement amounts.

Settle your debt for less with SoloSettle.

Robert's story offers valuable lessons about financial risk

Robert's story serves as a cautionary tale about the risks of borrowing money for investments. While cryptocurrency has generated significant returns for some investors, this is in the minority and not the norm. Using credit card debt to fund speculative investments can lead to devastating financial consequences.

If you find yourself in a similar situation of facing a credit card lawsuit after investment losses, remember these key steps:

• File an Answer document immediately to prevent default judgment.
• Communicate with the debt collector to explore settlement options.
• Consider your financial situation realistically and negotiate terms you can actually afford.

Most importantly, don't stick your head in the sand. As Levy emphasized throughout the podcast, "The trick to life and everything we do is communication."

Solo can help you navigate credit card lawsuits

Whether your debt stems from cryptocurrency investments, medical bills, or everyday expenses, the legal process remains the same. Credit card companies have the right to sue for unpaid debts, but you have the right to defend yourself and negotiate reasonable settlements.

Solo provides tools to help consumers respond to lawsuits properly and negotiate favorable settlements without the stress of dealing directly with collectors. The platform has helped hundreds of thousands of people resolve their debt and move forward financially.

To hear the full conversation with Yale Levy's complete debt settlement advice, you can listen to this episode of The Debt Hotline wherever you listen to your favorite podcasts.

Remember: being sued doesn't mean you can't negotiate. In fact, responding properly to the lawsuit often creates the perfect opportunity to reach a favorable settlement and move on with your financial life.

Transcript

George (00:37):

Hi to folks. This is George, founder of Solo and this is the debt hotline we have with us today. Yale. Yale Levy. How you doing? Yale?

Yale Levy (00:46):

Good, George, how you been doing?

George (00:48):

Doing great. Happy to have you on the show here today. A little bit more about Yale. He is a seasoned attorney with nearly three decades of experience specializing in collections, creditor and debtor rights and civil litigation. He joined SOLO last year as the head of business development to enhance and improve solo's efforts to help consumers resolve debt with collectors. Graduated from the Ohio State University College of Law and he served as special counsel to the Ohio Attorney General's office since 2006. Is that true?

Yale Levy (01:23):

Yes, it is.

George (01:24):

Wow. Check that out. He's also the past president of National Creditors Bar Association and he founded in his own debt collection law firm. Levying Associates is a well-respected and multi-state debt collection law firm. He brings his extensive knowledge in retail, commercial and medical collections and debt settlement to solo with the help of bridging the gap between collectors and consumers to help improve the chances of settlement for all sides. Yale, thanks so much for coming on.

Yale Levy (01:55):

Yeah, you're welcome. Glad to be here. Hope I can help.

George (01:57):

Fantastic. Alrighty folks. So we are talking about how to settle with a debt collector and we'll be getting into those specifics today. We have some questions from people who've written in. First one up we have is Kim in Michigan. I had a debt in California. The last payment was made in March, 2021. I am currently in Michigan on family business and in California the statute of limitations is four years and law states that where the debt was made is where the laws are. I'm not getting sued in Michigan for this debt. What are the laws for this? So basically Kim's wondering where should she be sued for this debt.

Yale Levy (02:44):

Again, just as my typical disclaimer that I provide when I do these talk shows like this one on the dead hotline, while I am a lawyer, I am not licensed in all 50 states. I'm only licensed in Ohio. I do not have a attorney client relationship with the people that are asking the questions on this call. So all of my suggestions are hypothetical and meant to help guide people in the direction about what would happen in a hypothetical situation. I cannot provide any legal advice on the specific case that you're asking about.

The first question I had was I had a deck that was created in California and I have now moved to Michigan. I'm assuming the question is George, can they sue me in Michigan?

George (03:40):

I think the reverse she lives in Michigan can see you be sued in California for debt she had in California.

Yale Levy (03:47):

No, because the creditor needs to have personal jurisdiction over the consumer. That means that they need to sue her in Michigan because that is where she resides since she left California and no longer lives there. So hypothetically speaking, the lawsuit would probably boil up into Michigan. Again, I'm not a Michigan attorney, nor am I a California attorney, so I cannot tell you how that statute of limitations will be applied, but I think Michigan is where you would be sued if they decide to sue you.

George (04:29):

So that is where you reside?

Yale Levy (04:29):

Right.

George (04:31):

Great. And that being said, Kim, right, can't is a difficult word a little bit, right? So they can sue you should they win the lawsuit if they see you in that spot, probably not. Should they sue you somewhere else elsewhere like where you live? Yes, but the only way that anything is going to be done about that is if you bring it up to the judge, correct?

Yale Levy (04:58):

Again, you need to advocate for yourself. You either need to hire an attorney or go to court and explain to the court that you have looked into this and you believe that the debt is out of statute if the statute in California is four years and have the judge make a ruling on that to decide if the case can go forward or not. Statute of limitations is a very critical legal term, which means how long somebody has to sue you after a breach has occurred. So if your last payment as you said was in 2021, it's been probably almost five years, maybe four years since that has happened. If the statute of limitations is four years, as you said it was in California, you probably have a pretty good defense that they can no longer sue you because you are outside the statute of limitations or they not you, but they are outside the statute of limitations.

George (05:56):

Right. We're moving on to the next question.

Guest 1 (06:01):

Yes, good afternoon. I have a $11,000 amount that I owe for an unsecured credit card and I have been sued in court and I have an arbitration hearing. Unfortunately, I was laid off and have been unemployed for the last few months and I'm unable to make any arrangements now. However, I have informed them that once I am employed again, that I am willing to make future payment amounts. So I'm not sure how the arbitration will turn out. The arbitration is next month. I would appreciate your input. Thank you very much.

Yale Levy (07:05):

So that's a really great question. Unfortunately, inability to pay is not a defense, so the fact that he is currently out of work is not going to help him overcome owing the money. What he needs to do is communicate with the plaintiff's attorney and try to get a resolution via a settlement and maybe friends, family, relatives could help him get into an agreement that he can afford and he could make monthly payments on the debt to try to avoid a default judgment from being entered against him and garnishment actions being undertaken once he does get a job. Again, the trick to life and everything we do is communication. So explaining to the plaintiff and the plaintiff's attorney his current situation that he is unemployed and he doesn't have money to pay the debt today, while an impediment now could be a benefit to the plaintiff and plaintiff's attorney down the road, if he could find a way through family, friends, relatives to make some small payments until he's able to get employment and then start paying off the debt.

By doing this, by entering into a payment plan, the consumer and the plaintiff come to an agreement and that gives the consumer some control over how much and when payments are made on the debt. If you don't do that and just stick your head in the and you don't come to a settlement, most likely a judgment can be or will be obtained against the defendant, this man and then once he gets a job, there's a chance that the plaintiff's attorney will find out where he walks and start a garnishment proceeding against him if the state that he is in allowed for wage garnishments, a wage garnishment towards most people's lives upside down. Because if instead of you knowing how much and when the money is coming out of your account, it's something that you've agreed to, a garnishment takes up to like in Ohio, 25% of your pay every paycheck and as you could imagine that could be devastating to most people that live paycheck to paycheck.

There's also other post-judgment remedies that could take effect depending on your state including but not limited to a judgment lien placed on your residence. If you own real estate in the state where you got a judgment against you at as well as a bank attachment, which is also very devastating. So you put money from your paycheck into your bank account and you try to save up a little bit for a rainy day fund or for an emergency fund, this plaintiff gets a judgment against this man. If they find out where he banks at, they could file a bank attachment and take out a good part of the money that he has in the bank that he has saved for a rainy day or for emergency funding. All these things happen involuntarily. That's why at Solo Settle where I work, we really encourage people to communicate with their plaintiffs and the plaintiff's attorneys to try to come to amicable settlement terms that they could live with so that they have some input into when and how much is taken out of their pay or how much they have to pay to the plaintiff every month.

That way it gives you some modicum of control and you know that you could walk that into your budget and you know how much every month that payment will be. That's very important for so many people. They don't see that this is the long game. You'll see the short game and the short game is getting out of court, which is great, but if getting out of court means you've stuck your head in the sand and the default judgment is taken against you that one day out of the blue your paycheck might be garnish the money, new bank might be attached and there might be a judgment need placed on your house that could be devastating to you. So by taking control now and saying something now will pick dividends down the road.

George (11:45):

That's for sure. Communication is key and folks, just so you know, a good portion of solo customers report that they go to friends or family to help pay off the debt that they are in something that we've surveyed people on and that's what they tell us. Also, a good portion of people will actually use another loan if they need to get back on the right track and you have access to exclusive deals on the solo dashboard. So if you log into sosu.com and you just go to your dashboard, you can check it out. We have partnership with folks who can help you do bankruptcy if that's the right path for you. They can also get a loan that can help you build your credit even if you have bad credit right now. So you can go and check out our partners like Bad Credit Loans or Covo or Personal Loans and help yourself get back on the right track. There we have another question.

Guest 2 (12:47):

Hi. I was just wanting to ask a question real quick and I have a debt lawsuit where the debt is $2,500 and I'm being sued by LV Envy. I filed my answer which was a general denial in the case and the next thing that I got was a notice of trial and I wasn't expecting that. I was expecting I guess a chance to negotiate or something or for them to send an answer back. I wasn't prepared for the trial so I'm just wondering if that normal and what I can do to prepare. Again, it's over $2,500, so I'm just curious on what your advice on the next steps would be.

Yale Levy (13:33):

Hypothetically speaking, $2,500 debt is a great debt size to get resolved amicably, I know the solution to your problem. It is pick up the phone, call the plaintiff's attorney, use solo settle to try to make a settlement offer. Most if not all, plaintiffs will let you pay monthly payments over 12 or 24 months. You could start with a reduced amount and negotiate up and down with them to try to get the case settled. What you don't want to do is wait till the last minute and go to court. My suggestion to this call would be to tomorrow pick up the phone and call them. Come on to solo settle and make a consumer initiated settlement offer and digitally communicate with the collector if you want. Try to find an attorney to help you if you want, but what you need to do immediately is this caller needs to do is communicate, communicate, communicate with the plaintiff's attorney and get the case settled.

The $2,500 debt, I'm sure they'll take off least 10% if not 20% or 25% to get it settled. You could probably make monthly payments of $150 a month for 18 months to get it resolved and put this behind you and move on. What you don't want to do, and I see this every day when I practiced law in Ohio, is people stuck their head in the sand. They didn't respond, at least she responded to the complaint, but they wait to the last minute to make an offer and then it's too late. You need to do this now before they get a witness to come to court and I'll actually in the court mode you need to call them, talk to them or use solo settle. Solo settle is a great resource. I see it every day. I see people using it every day. It is a great frictionless way to communicate with debt collectors around the country without ever having to be stuck on hold, be playing phone tag and having emotions. It's a great resource. George and his head made this up and it's been a great service through so many thousands and thousands of consumers around the country who have been sued by debt collectors.

George (16:08):

And so we always say the best time to settle is right after filing the answer document. So you want to respond to the lawsuit, give yourself some more time, and then you can make an offer to settle on solo settle. You just go on the solo.com, click settle a debt, get started and then just answer our questions. Takes just a few minutes and then you can see what kind of deals you can get on that debt and get a settlement, start paying nothing off and have that all behind you. So that's the best time to settle. The second best time to settle is right now you can settle any time during this whole process and you can just go in and get a settlement so you don't have to go to court. I think it's not uncommon for people to be in this position. They think I'm going to file an answer and then I'm going to wait and see what happens and hopefully the other side caves, but then all of a sudden the other side doesn't cave and the person's like, crap, I should have settled earlier or something like that. But no, the best path is to file an answer and then just try to settle after you've taken that move. We have a live caller. How's it going? This is George.

Guest 3: Jaine (17:25):

Hi, this is Janie Mendoza.

George (17:27):

Janie, good to meet you. What's happening?

Guest 3: Jaine (17:31):

Well, first I would just want to take solicit because you did help me answer my lawsuit from Midland and you did try to help me to do settlement before my hearing, but then on the last, during the negotiation that Midland told you all that they're not going to accept anything because I'm on a judgment. Even at that time we didn't even have a hearing yet. So I did go ahead and went to my hearing and I did file with the help again with, so I did file for notice for arbitration. At the time, the judge doesn't know what to do. He said, okay, we'll do 60 days. Within 60 days we'll do second hearing because at that time I said, I have a question about the amount, all that. And also because during that time, regional Creditor has the general provision for arbitration anyway, so it's from bed but and beyond and they closed.

They did file for bankruptcy because I said I've been paying the card, what happened? But also during that time I got sick with COVID and everything. So now I found out they closed the account or something and I never received anything from them. So then when I filed for the notice of the arbitration, within a month after the hearing, the Midland credit send me a letter, a copy of the documents. I think they're sending to the judge and they're saying, yeah, it's okay, or something like that, arbitration. But I didn't know on the last page because it doesn't have a signature of the judge, it doesn't have a date. It's blank that they're pulling that I have to put 30 days to initiate arbitration. And I never received any court stamp, like original, like a court order. I only found out like, oh, there's a court order because I filed arbitration through Jams. But then Midland Credit was claiming no that since I was on violation, that's the hearing for reviving the case. I said, I never thought it was closed or reviving the case.

George (19:57):

Hey Jan, so thanks for sharing. Thanks for giving us the spiel here. So just clarifying a few things. Sounds like, so you're being sued by Midland gone the court a few times. It's for Bed Bath and Beyond.

Guest 3: Jaine (20:09):

Yeah, one time so far. We have a second hearing this Thursday.

George (20:14):

Okay. Yeah, so Bed Bath and Beyond, right? That went bankrupt a few years ago. I recall they had like $300 million in outstanding liabilities under gift cards and such when they went bankrupt, but they also provide a lot of people. They provide store credit cards.

Guest 3: Jaine (20:31):

Credit cards

George (20:32):

Yeah. No to everyone, right? Usually, I mean if you would go through this again, you probably won't get another store. Credit card store credit cards usually aren't best cards. They're usually quite high interest. I have people get 'em right there at the point of sale to get the deal, but they aren't the best cards usually. And tell us more about your situation generally. Are you working right now?

Guest 3: Jaine (20:54):

Yes, actually I'm willing to settle. That's why I even apply to you all to settle, but that's the time they say no, they're not going to accept anything. They want a lump sum because that Midland already have a judgment on me, but I said I didn't have any judgment, so really at the time. Okay, go ahead. I'm going to go anyway, the court to the court anyway, but that's why.

George (21:22):

What's the debt? What's the loss of amount?

Guest 3: Jaine (21:23):

It's five nine, $5,900.

George (21:28):

Okay. What's your income?

Guest 3: Jaine (21:30):

Well, actually I even explained today, I just started working with me. Even when I start hearing, I start saving. I'm working on the weekends so I know I'm willing to pay, but I was caught when they say no, there's a judgment. What judgment? I was like, they're lying to, I don't have a judgment in me.

George (21:58):

Do you have other debts that you're dealing with as well or is this?

Guest 3: Jaine (22:01):

No, this is the only one. That's why I was like…

George (22:05):

How'd you fall behind on this card?

Guest 3: Jaine (22:07):

That's why I got sick with COVID and I didn't even know because my other card, that's why I even explained to my other credit card that has insurance I filed, so it's been paid by the insurance or something accuser something, the insurance. But this one I said, what happened? What happened in here? But during that year, 2023 from that time that I have surgery, I was sick, but I tried. I even have the receipt on my other card that my doctor was signing like Okay, yeah, that I was sick, so I was, yeah.

George (22:49):

Have you made a SoloSettle yet? Have you offered a deal on SoloSettle yet?

Guest 3: Jaine (22:52):

Yeah, they did and that's the one, that last part I had the email. In fact, I'm going to present it to arbitration.

George (23:00):

And they say no?

Guest 3: Jaine (23:00):

No, they're not. They're not willing.

George (23:06):

Who's the law firm? A law firm for what?Who's the law firm representing Midland?

Guest 3: Jaine (23:09):

Oh, they just put, I just know the name of the, because they put in Midland credit management and then the lawyer is one Gaga, something like that.

George (23:21):

What state did you say you're in?

Guest 3: Jaine (23:23):

Texas? Yeah.

George (23:24):

Texas. Okay. Scott and Associates is the biggest law firm in Texas, but sometimes Midland represents themselves. Yeah. What do you think?

Yale Levy (23:32):

Boy, there's so much to unpack in Janine's story. Again, I think she's doing the right things that she is going to court. She is communicating with Midland. I'm surprised they don't want to try to settle with her and take a discounted value. It sounded to me like Janine was offering to pay something on the debt because she knows she owes it, it sounds like. But I'm kind of surprised that Midland's tenacity with this case and about why it's going the direction it's going. Janine, the most important thing to do, and I think you're doing it, is you need to go to court on Thursday, which is coming up and advocate for yourself and explain to the judge what you've done, what you've tried to done, try to do and try to get him to help you convince Midland to take a settlement that you can afford and make either a lump sum discounted payment or payments on a discounted sum. Monthly payments on a discounted sum. I think that would be a win-win for you. You don't want to go to court.

That's really the true trick to debt collection is as George has taught me, both parties want the same thing, a quick settlement as fast as possible. So I would still keep banging that drum. I would suggest to you, I can't give you legal advice of course, but I'll suggest to you that you talk to the judge and you tell 'em, I want to settle and they just refuse to respond to my offer or do anything and see what he can do to help you maybe get to a win-win or you pay something and they're willing to accept what you're offering.

Guest 3: Jaine (25:25):

And the thing with me is the reasoning with me with the arbitration, I feel like I'm willing to settle, but at least it's not on the courtroom. I could, it's not formal. And I even submitted a complaint to the consumer because initially they lied that they say that there's a judgment on me when I was trying to settle and then now they're saying that I have a court order. I didn't have a court order. The one that copy that I got is there's no signature of the judge and it's no date. So how do I know what's the 30 days?

Yale Levy (26:07):

Kind of like that when you see the judge on Thursday, bring that up to him and say, this is what got and it wasn't complete.

George (26:12):

Yeah, it's Janie, what you're describing is a tactic that we see quite a bit. It is legal and it is like a fine tactic. What Midland's doing is they're sending you documents that they're proposing in court that haven't been finalized yet, so they'll send you an order for default judgment or an order for judgment. It's not signed. It looks like a real document. It is a real document, but it's not signed by the judge. It's not finalized. They're just proposing that and it does scare people quite a bit, but it's not a finalized order like you're saying. So you're totally on point there. Yep. You definitely want to show up in court and hopefully they'll settle before court. What's your latest offer? What have you offered on this thing?

Guest 3: Jaine (26:57):

The last offer that I was trying to sell is 3,500

George (27:04): On a $5,000 debt.

Guest 3: Jaine (27:06): Yes.

George (27:07):

As a lump sum. As a single one-time

Guest 3: Jaine (27:09):

Lump sum. Yes.

Yale Levy (27:10):

Yeah, I think you're definitely in the right mindset there. I would ask them to make a response to your offer and see if they can come down a little bit and try to meet in the middle. I think that'd be a win for you.

George (27:24):

Janie, thanks for coming on. Go ahead. Thank you. Go ahead and

Guest 3: Jaine (27:27):

Thank you so much.

George (27:28):

Go ahead and send your email address to Hannah on the line and we can go ahead and take a look at your account and help you out further to make sure that.

Guest 3: Jaine (27:37):

But also thank you because you helped me. I did the answer. In fact, the judge was kind of surprised that I have a formal answer and then with the arbitration, even the judge again, he was like, oh, I think the judge even got surprised that I was asking for arbitration.

George (27:57):

Glad we could do the answer. Glad we could do the answer for you. Thanks. We have one more caller coming on. Robert, how's it going? This is George.

Guest 4: Robert (28:05):

Hey George, thanks for taking my call guys. I do live in Ohio and I'm being sued by PNC credit card for about 15 grand. I fell behind on a lot of my payments. They're just one of them. I basically borrowed too much money. I had pretty good credit and I borrowed a lot of money for an investment that is still get to be paid out, so I fell behind on a lot of my payments. I paid off some the lower ones and the bigger ones. I couldn't pay the payments anymore. I did recently pay one off by refinancing my house. I paid off a $26,000 credit card by refinancing in my house, so that happened recently, but the reason I'm calling is I'm being sued by PNC Bank and I initially did a response back to 'em with the solo document and from what I can tell in the paperwork, they said they've never received anything from me, no acknowledgement or anything, which is a lie and it has gone to the Franklin County Common Court and it basically said the judgment is against me and approved and I'm basically guilty, but there's never been a date, a court date or anything on any of the documents they sent me to show up in court or anything.

So I don't know what's going to happen next. It's from this Wicker and Associates out of Independence, Ohio. They're a debt collection law firm I guess, and what kind of stinks about it is I had a PNC home equity line of credit with them and once I started going to fault on this credit card, they stopped my line of credit from my house and I called them up and I asked them, I said, if you turn my line of credit back on, I will pay the $3,000 that I'm behind in payments and we'll be back on schedule again and I can start making payments again. Well, they denied that and didn't want to do that. I guess they didn't want to extend me any more credit, I guess for obvious reasons, but that would've settled or that would've gotten me back on plan again. But they didn't want to do that. I did the so letter and then they're basically acknowledging that I never replied to this and then the court says I'm guilty and I owe them now $17,000 with filing fees and extra court costs and all that stuff. So now actually I owe 'em like 18,000 now it looks like.

Yale Levy (30:37):

So can we unpack this a little bit? When you say the solo answer, I mean the solo letter, do you mean the Solo Answer?

Guest 4: Robert (30:47):

Yeah, the acknowledgement that I had to reply back to the initial letter that I got. So I did that through solo, correct.

Yale Levy (30:55):

Have you checked the Frankton County common Plea Court Clerk of Court's records to see if that answer was actually filed in the case?

Guest 4: Robert (31:05):

I have not done that. No.

Yale Levy (31:07):

You need to make sure that that answer was filed. If it was not filed or was filed in the Ryan Case, you need to go down to the court and write up something called a motion to vacate judgment saying you did try to file the answer but that it was not properly filed.

George (31:25):

Yep. And so Robert, yes, with this, right, so it sounds like you used solo to use to do the dead answer. You want to make sure that you didn't accidentally do a debt validation letter or something else like that. You want to make sure you did a dead answer. Our answer is highly accepted by courts. That said, sometimes things happen, the error rate in filing answers for us is less than 0.05%, so it is widely accepted. If there ever is an issue, we just refile for people automatically for free.

Guest 4: Robert (31:57):

Sorry, that's one that costs like $29 or something.

George (32:01):

That letter, it sounds like maybe you did a debt validation letter. Yeah, that one we don't offer that letter anymore, but used to be $29. Yes.

Yale Levy (32:08):

What you needed to file was something called the answer, and the answer is a response to a complaint. We have lots of blogs telling people about answers and explaining to them why it's necessary to file an answer to avoid a file judgment from being granted. Do you know when the judgment was issued? How long ago was it?

Guest 4: Robert (32:27):

I'm looking at it right now and it's stamped July 24th.

Yale Levy (32:33):

Oh, so it's only been 30 days. I would suggest you go to solo, settle or solo and see if you could do a motion to vacate judgment. We have a product called Solo Ask Solo that will help you use AI to draft a motion to vacate that judgment and try to get a second fight at the Apple. It might work, it might not work. You need to provide them, Robert, with some specificity as to why you didn't file an answer with the court. Maybe you can tell 'em that you were confused at the debt validation notice that you sent was the same thing as an answer, but it's not unfortunately.

George (33:14):

So you can go on to solicit.com. They just click ask solo. You can have so AI create the document for you and get that all taken care of. So you'll want the motion to set aside judgment and then you'll also will generate an answer document and then you can get those all filed in the court and that's the rundown there. The good news for you is that motions to set aside judgment are pretty much always accepted. On some rare occasions the judge won't accept them, but that's accepted and you'll take your answer document.

Guest 4: Robert (33:52):

Okay, it says this is a final and appealable judgment, right?

Yale Levy (33:57):

That's what they say. Once they get a default, judgment is issued. That is very common language. I do see that they filed a default judgment on six 11 and that they granted the motion on 7 24 2025. So that's what happens when you don't respond to the complaint. That de default judgment happens. We have lots of blog articles that you could come onto solo soup.com and look at and we have articles about motions to vacate judgment. We have articles on how to file an store and why it's important to file an store. I would go on our site, review those documents and see what you could do to help yourself get out of this hole.

George (34:41):

People settle with Zwicker frequently through solo. They're one of the largest debt collection law firms in the us. We also see people resolve guards with PNC. Bummer about the home equity line of credit. Totally feel you there, right? You could have paid that off and done it at a lower interest rate, but all is not lost. So again, you just want to do the motion to set aside judgment and then get that answer created and filed

Guest 4: Robert (35:08):

After that. If they do do the vacate judgment, then what would happen

George (35:14):

All at the same time? Send them in an offer on solo settle to pay off the debt at some kind of a discount.

Yale Levy (35:20):

So Rob, what the trickiest communication. You need to use solo settle. You need to pick up the phone, you need to find an attorney, but you've got to communicate with the plaintiff's attorney to try to get the case settled. It isn't your best interest to settle the case because settling for 80% is so much better than getting a judgment taken against you and having a lien put on your house and maybe a wage garnishment filed against you in Ohio, which would be, yeah,

George (35:51):

We usually see people pay at least 70% extra when they don't settle and they just try to go on and end up losing the lawsuit. Robert, what's your investment?

Guest 4: Robert (36:03):

With crypto?

George (36:05):

You've been taking out credit to invest in cryptos.

Guest 4: Robert (36:09):

For quite a few years now and it wasn't a traditional way and it was Bitcoin to make more Bitcoin and basically mining a company. Was mining Bitcoin turn one into two or three kind of thing?

George (36:29):

Was it mostly Bitcoin you were buying or anything else? Buying any Ripple?

Guest 4: Robert (36:32):

Mainly Bitcoin. Yeah, it was all Bitcoin.

George (36:36):

Okay. Well hope that turns out for you. I think you probably know this at this point. That's a very high risk, very high risk move. Taking out invest.

Guest 4: Robert (36:45):

Yeah, I took huge gamble. I realize that and I was hoping to get some return way before this and I wouldn't even be in the situation I'm in, but I did the best thing about borrowing money to invest. I know that's not the way to do it.

George (37:01):

Well, hopefully this can pan out for you still and you can get out of all of this debt and get back to positive net worth. Alright, Robert, thanks so much for calling in. Appreciate it. Glad that we can help you out.

Guest 4: Robert (37:11):

Yep. Thanks guys.

Yale Levy (37:13):

You're welcome. Thank you

George (37:14):

All. How about you? Are you taking out credit to invest in crypto Yale?

Yale Levy (37:19):

For good or for bad? I have not invested anything in crypto yet. Don't think I don't plan to.

George (37:26):

I'm definitely am definitely buying cryptos personally, but not on credit. Definitely want to avoid that, folks definitely want to avoid that. Sometimes we got to learn the hard way, that's for sure. Unfortunately. But I hope Robert gets out out of this whole, I just look at the numbers on Bitcoin, right? It's been the best investment over the last two decades.

Yale Levy (37:46):

It is a gamble.

George (37:48):

We have a question from Shirley in Tennessee. After settling with the debt collector, how is the best way to clear it off your credit reports?

Yale Levy (37:55):

After seven years from default, most debts come off your credit report. That's typically the easiest way for it to come off your credit report is seven years from the last payment date. Actually they're forced to default. So once you default, that's when the clock starts ticking.

George (38:14):

I think Shirley's thinking that after she settles it, the collector will remove it from the credit report. Is that the case? Is that what they're supposed to do or are they just supposed to leave it on and say that it's been settled?

Yale Levy (38:23):

They're supposed to make some notations on their credit file saying the account is paying and or settled. Some people do that, some people don't.

George (38:33):

Yep. So that's the right idea, Shirley. And it is the creditor who does that. It's not the collections law firm or it's the person that owns the debt, but they aren't actually supposed to take it off of your credit report, so after you pay it, they aren't supposed to take it off your report.

Yale Levy (38:56):

They are supposed to mark it as settled or paid in full or settled for less than full balance.

George (38:58):

Yeah, exactly it. We have a question from King Arthur. He says, I have 135 million in credit card debt. Should I just let it go to collections?

Yale Levy (39:11):

You really think we could have $135 million in credit card. Maybe for him it feels like $135 million, but that would be some spending spree.

George (39:23):

135 million King Arthur. That is a lot of money. Hopefully you get that wrapped up at any point in time you can try to settle it and get that paid off. This is the debt hotline. Thanks so much for coming on, Neil.

Yale Levy (39:37):

Yep, George, always fun, happy to do it.

George (39:40):

Alrighty folks, stay tuned for our next $4,700 giveaway Starting soon. In the month of September, you'll be able to enroll and sign up for $4,700 giveaway, so stay tuned for that. You may be the lucky winner of $4,700. Take care.

Yale Levy (40:02): Bye-bye.

Disclaimer: The information presented in this podcast is intended strictly for general informational purposes and should not be construed as legal, financial, or investment advice. Solo and its hosts are not licensed attorneys, financial advisors, or other certified professionals. While select guests may hold active professional licenses, their contributions are purely for educational and thematic discussion. They're not delivering professional or personalized advice. Solo is not a law firm, does not offer legal representation and must not be relied upon as a substitute for professional legal counsel. It is also not engaged in debt, settlement, credit repair, or financial counseling services. Solo provides self-directed software tools designed to support users in navigating their own legal and financial situations. Participation in this podcast does not establish an attorney-client relationship. Listeners are encouraged to consult with attorneys or licensed professionals for guidance specific to their circumstances. The opinions expressed by podcast participants are their own and do not necessarily reflect the views or official positions of SoloSuit Inc. Doing business as Solo or any affiliated organizations.

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont; Vermont (Small Claims court)
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

• 11 Charter Communications
• AAA Collections
• Aargon Agency Inc
• Absolute Resolutions Investments LLC
• ACEI Collections
• Account Services
• Accredited Collection Services
• Accredited Collection Services
• Advanced Recovery Systems
• AES NCT
• AFNI Collections
• Alco Capital Group LLC
• Aldous and Associates
• Alliance Collections
• Alliance One
• Alliant Capital Management
• Alpha Recovery Corp
• Alltran Financial
• Alltran Health
• Alorica Inc.
• Amcol Clmbia in Court
• American Coradius International
• American Profit Recovery
• American Recovery Service
• Americollect
• AmSher Collection Services
• Apelles LLC
• AR Resources
• ARC Collections
• ARM Solutions
• Arrow Financial Services
• ARS National Services
• ARSC Debt Collectors
• ARS National Services
• ARstrat
• AscensionPoint Recovery Services
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Atlantic Credit and Finance
• Atradius Collections
• Automated Collection Services, Inc.
• Autovest LLC
• Avante USA
• Avantus
• AWA Collections
• Balekian Hayes
• Bay Area Receivables
• BCA Financial Services
• BC Services
• Benuck and Rainey
• Berlin-Wheeler
• Bluebonnet Financial LLC
• Bonneville Collections
• Bull City Financial
• Bureaus Investment Group
• Cach LLC
• Caine and Weiner
• Capio Partners
• Capital Accounts
• Capital Collections
• Capital Management Services
• CardWorks
• Carmel Financial/New Coast Direct
• Cavalry SPV I LLC
• CBCInnovis
• CBCS Collections
• CBE Group
• CBV Collections
• CCB Credit Services
• CCS Collections
• CCS Offices
• Central Mediation Services
• Central Portfolio Control
• Cerastes LLC
• Choice Recovery
• Choice Recovery Inc
• CKS Financial
• CKMS Financial
• Client Services
• CMRE Financial Services
• COAF
• Coast Professional
• Comenity Bank Debt Collection
• Commonwealth Financial
• ConServe Debt Collection
• Consumer Collection Management
• Contract Callers Inc
• Convergent Healthcare Recoveries
• Convergent Outsourcing
• Couch Conville & Blitt
• Covington Credit
• CRDT First
• Credco in Court
• Credence Resource Management
• Credit Bureau Systems
• Credit Control Corporation
• Credit Management Company
• Credit Management LP
• Credit Systems
• Credit Systems
• CSIEZPay
• CTC Debt Collector
• CVCS Debt Collection
• Cypress Financial Recoveries
• D&A Services
• Daniels, Norelli, Cecere & Tavel P.C.
• DCM Services
• Debt Recovery Solutions
• Delanor Kemper & Associates
• Department Stores National Bank
• Direct Recovery Associates
• Discover Collections
• Diversified Adjustment
• Diversified Consultants
• Diversified Recovery Bureau
• DNF Associates, LLC
• Dodeka LLC
• DRS Credit
• Dynamic Collectors
• Eagle Loan
• Eagle Accounts Group, Inc.
• Eastern Account System
• EduCap
• Ellington and Associates Collections
• Encore Capital Group
• Enerson Law
• Enerson Law LLC
• Enhanced Recovery Company
• EOS CCA
• ERC Collections
• ERSolutions
• Estate Information Services
• Equable Ascent Financial
• Everest Business Funding
• Executive Credit Management
• Faber and Brand
• Factual Data
• Falls Collection Service
• FBCS
• FCO Collections and Outsourcing
• FIA Card Services
• fin rec svc (Financial Recovery Services)
• First Federal Credit Credit Control
• First Financial Bank
• First Portfolio Ventures LLC
• First Progress
• FirstPoint Collection Resources
• Firstsource Advantage
• FMA Alliance
• FNB Omaha
• Forster & Garbus
• Franklin Collection Services
• Freedom Plus
• Freshview Solutions
• Frontline Asset
• Frost Arnett
• Fulton Friedman & Gullace LLP
• Galaxy International Purchasing, LLC
• GC Debt Collection
• GC Services
• General Revenue Corporation
• GLA Collections
• Glass Mountain Capital
• Glasser and Glasser
• Global Credit Collection Corp
• Global Trust Management
• GMAC Financing
• Golden 1 Credit Union
• Grant and Weber
• Grant Mercantile Agency
• Gulf Coast Collection Bureau
• Gurstel
• Halsted Financial Services
• Harris and Harris
• Harvard Collection
• Harvest Credit Management
• Helvey and Associates
• Hollis Cobb
• Holloway Moxley
• Hosto Buchan
• Howard Lee Schiff
• H&R Accounts
• HRRG
• Hudson & Keyse LLC?
• Hunter Warfield
• IC System
• Impact Receivables Management
• Innovative Recovery
• Integras Capital Recovery LLC
• Javitch Block
• JHPDE Finance 1 LLC
• JP Receivables Management Partners
• JPMCB card
• Kenneth Eisen and Associates
• KeyBank student loans
• Kinum
• Kirschenbaum, Phillips & Levy P.C.
• KLS Financial Services
• Kramer & Frank
• Lakeside Collection
• Lending Club
• Lincoln and Morgan Kabbage
• Linebarger Goggan Blair & Sampson LLP
• Lockhart Collection Agency
• LJ Ross Associates
• LTD Collections
• Malcolm S. Gerald and Associates
• Malen & Associates
• Mandarich Law Group
• Mannbracken
• Marcam Associates
• MARS Inc. Collections
• MBA Law
• MCA Management Company
• McCarthy, Burgess & Wolff
• Meade & Associates
• Medicredit
• Mercantile Adjustment Bureau
• Merchants Credit Association
• MGM Collections
• Michael J Adams PC
• Midland Funding LLC
• Mid-South Adjustment
• Monarch Recovery
• Monterey Financial
• Moss Law Firm
• Mountain Land Collections
• MRS Associates
• MRS BPO
• MSW Capital LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Nathan and Nathan PC
• National Collegiate Trust
• National Credit Adjusters
• National Credit Care
• National Credit Systems
• National Enterprise Systems
• National Recovery Agency
• National Recovery Solutions
• Nationstar
• Nationwide Credit
• Nationwide Recovery Services
• Nationwide Recovery Systems
• NCEP LLC
• NCO Financial Systems Incorporated
• North American Recovery
• Northland Group
• Northstar Capital Acquisition
• Northstar Location Services
• NPAS
• NRC Collection Agency
• Oliver Adjustment Company
• Oliphant Financial, LLC
• Oportun
• P&B Capital Group
• PCB Collections Agency
• Palisades Collection LLC
• Pallida LLC
• Paragon Contracting Services
• Paragon Revenue Group
• Payday Loan Debt Collectors
• Pendrick Capital Partners
• Penn Credit
• Perdue Brandon
• Persolve LLC
• Phillips & Cohen Associates
• Phoenix Financial Services
• Pioneer Credit Recovery
• PMAB LLC
• PRA Group, Inc.
• Pressler, Felt & Warshaw LLP
• Prestige Services, Inc.
• Prince Parker and Associates
• ProCollect
• Professional Finance Company
• Progressive Management Systems
• Provest Law
• PYOD LLC
• Quaternary Collection Agency
• RAB Collection Agency
• Rash Curtis and Associates
• Radius Global SOL
• Radius Global Solutions
• Rawlings Company
• Razor Capital
• Real Time Resolutions
• Receivables Performance Management
• Regents and Associates
• Reliant Capital Solutions
• RentGrow
• Resurgent
• Resurgent Capital Services and LVNV Funding
• Revco Solutions
• Revenue Enterprises LLC
• Revenue Group
• RGS Financial, Inc.
• RMP LLC in Court
• RMP Services
• RS Clark and Associates
• RSIEH
• RSIEH
• RTR Financial Services
• Rubin & Rothman
• Salander Enterprises LLC
• Samara Portfolio Management
• SCA Collections
• Scott Parnell and Associates
• Second Round Collections
• Second Round Sub LLC
• Selip & Stylianou LLP
• Sequium Asset Solutions
• Sessoms and Rogers
• Sherman Acquisition
• Sherman Financial Group
• SIMM Associates
• Source Receivables Management
• Southern Management Systems
• Southwest Credit Group
• Spire Recovery Solutions
• SRS Company
• Stark Collection Agency
• State Collection Service
• Stenger and Stenger
• Stillman Law Office
• Summit Account Resolution
• Sunrise Credit Services
• Superlative RM Debt Collector
• Suttell and Hammer
• Synergetic Communication
• Synerprise Consulting
• The Law Office of Michael J Scott
• Trellis Company
• Troy Capital
• TRS Recovery Services
• TrueAccord
• Tulsa Teachers Credit Union
• UCB Collection
• UHG 1, LLC
• Unifin
• Unifin Debt Collector
• Unifund
• Universal Credit Services
• US Bank Collections
• USAA collections
• USCB America
• Valentine and Kebartas
• Valley Servicing
• Vance & Huffman LLC
• Van Ru Credit Corporation
• Velo Law Office
• Velocity Investments
• Viking Client Services
• Wakefield and Associates
• Waypoint Resource Group
• WCTCB
• Weinberg and Associates
• Weltman, Weinberg & Reis
• Westwood Funding
• Williams and Fudge
• Wilshire Consumer Credit
• Wolpoff & Abramson
• Worldwide Asset Purchasing
• www.AutomotiveCredit.com
• Zarzaur & Schwartz
• Zwicker & Associates

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

• American Express; American Express – Debt Collection
• Bank of America
• Barclay
• Best Buy Credit Card
• Capital One
• Chase
• Credit One Bank
• Old Navy Credit Card
• PayPal Synchrony Card
• Regional Finance
• Retailers National Bank
• Reunion Student Loan Finance Corporation
• SYNCB/PPEXTR
• Synchrony Bank
• Synchrony Walmart Card
• Target National Bank
• Webbank
• Wells Fargo
• Can I Pay My Original Creditor Instead of a Debt Collection Agency?
• Can I Settle a Debt with the Original Creditor?

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

• Am I Responsible for My Spouse's Medical Debt?
• Do I Need a Lawyer for Medical Bills?
• Do I Need a Lawyer to Fight Medical Bill Debt?
• Does Bankruptcy Clear Medical Debt?
• How Much Do Collection Agencies Pay for Medical Debt?
• How to Find Medical Debt Forgiveness Programs
• Is There a Statute of Limitations on Medical Bills?
• Medical Debt Statute of Limitations by State
• Summoned to Court for Medical Bills — What Do I Do?
• Summoned to Court for Medical Bills? What to Do Next

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

• How Arbitration Works
• How to Find an Arbitration Clause in Your Credit Agreement
• How to Make a Motion to Compel Arbitration
• How to Make a Motion to Compel Arbitration in Florida
• How to Make a Motion to Compel Arbitration Without an Attorney
• How Credit Card Arbitration Works
• Motion to Compel Arbitration in California
• Sample Motion to Compel Arbitration

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

• 1-800-390-7584
• 800-289-8004
• 800-955-6600
• 8009556600
• 877-366-0169
• 877-591-0747
• 800-278-2420
• 800-604-0064
• 800-846-6406
• 877-317-0948
• 888-899-4332
• 888-912-7925
• 202-367-9070
• 502-267-7522

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

• 15 USC 1692 Explained
• Does the Fair Credit Reporting Act Work in Florida?
• FDCPA Violations List
• How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
• How to Make a Fair Debt Collection Practices Act Demand Letter
• How to Submit a Transunion Dispute
• How to Submit an Equifax Dispute
• How to Submit an Experian Dispute
• What Debt Collectors Cannot Do — FDCPA Explained
• What Does Account Information Disputed by Consumer Meets FCRA Requirements Mean?
• What does “meets FCRA requirements” mean?
• What does FCRA stand for?
• What is the Consumer Credit Protection Act