As a debt relief attorney, I get many calls asking me what to do if sued by Cavalry Portfolio Services. My recommendation is almost always to fight a Cavalry Portfolio Services Lawsuit. More often than not, the Winn Law Group is the law firm who will sue you on behalf of Cavalry Portfolio Services. If you are dealing with Cavalry Portfolio Services and need debt lawsuit help, it’s important to know that there is a way out.
Our client owed Bank of America in excess of $20,000 on a credit card. The debt eventually got sold to Cavalry Portfolio Services, a third-party debt buyer. Cavalry eventually retained the Winn Law Group to assist with the debt collection or a lawsuit if collection efforts failed. Our client also owed the IRS about $500,000. We explained this to an attorney at Winn and he agreed to accept $2,000.00 to fully settle this account. We saved our client over $18,000 (approximately 90% of the balance claimed due) on this debt.
What to Do If Sued by Cavalry Portfolio Services
If you are sued by Cavalry Portfolio Services, then you might be wondering who they are and why is Cavalry Portfolio Services threatening a lawsuit against you? Cavalry Portfolio Services is an enormous debt buying company. They buy debt from credit card companies and banks, such as Capital One, Wells Fargo, Citi Bank, Chase and Bank of America. So let’s say you took out a credit card with Chase, but you haven’t been able to make your payments for 180 days. At that point your credit card account is considered in default and “charged off”. Cavalry Portfolio Services purchases these charged off credit card accounts for pennies on the dollar. Now that they own your account, they will come after the full debt (plus any late and overdraft fees, attorney fees and interest) with their vast resources. At this point, you probably want to stop the debt collection harassment.
The fact is that you do have recourse. For one thing, Cavalry Portfolio Services buys so many of these debts, that they basically have a spreadsheet of data with just your name, number and the amount of debt you owe. Cavalry has the burden of proof under the law to prove that they now own your debt, that the debt amount is correct, that your information in the lawsuit is correct, that the statute of limitations hasn’t passed and other technicalities. If Cavalry Portfolio Services can’t meet the burden of proof, then there is a good chance your lawsuit can be dismissed.
How to Negotiate a Settlement With Cavalry Portfolio Services
If the lawsuit is legitimate, then your next step is to negotiate a debt settlement with Cavalry Portfolio Services. A debt settlement is a negotiation made between the credit card borrower and the owner of the debt (Cavalry Portfolio Services in this case) that the borrower will pay back a (usually greatly) reduced amount of the overall debt in a lump sum or over a period of time. Debt buyers, such as Cavalry Portfolio Services, like debt settlements because it saves them money having to fight the lawsuit, plus they would rather receive some funds from you than have you declare bankruptcy and receive nothing.
Our client owed $12,763.93 on a credit card with Citi Bank. He defaulted in payment when he took a cut in pay at his job. Citi failed to collect on the debt and eventually sold the debt to Cavalry Portfolio Services. Cavalry initially demanded that our client pay $10,211.14 to settle the debt. Through a series of back and forth negotiations, Cavalry Portfolio Services finally agreed to accept $6,381.96 to fully settle this account. We saved our client 50% of the total amount of his credit card debt.
If you are served with a Cavalry Portfolio Services lawsuit, you need to act immediately or else a default judgement will probably be entered against you. In this case, you automatically lose and Cavalry can try to recover the debt you owe them by garnishing your wages, putting a lien on your property and/or levy your bank account – not to mention the significant damage to your credit. I offer a 100% free consultation, so give me a call at 858-217-5051 if you need help settling or defending a debt collection lawsuit. I am in the business of helping people get out of debt and saving my clients money, as you can see from my client success stories. The savings I offer my clients far outweigh my attorney fees. If you are in need of debt help, give me a call or submit a question via my “Ask A Debt Question” page.
Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego, CA. For more information, please contact Daniel Gamez at 858-217-5051, daniel@gamezl