Legal Question in Credit and Debt Law in Arizona

I defaulted on a car loan back in 2005, since then It appearted to have been sold (The Debt) to multiple companies, one of which I started making payment back in 2007 and completed last year. Yesterday I was served a court summons (Small Claims Court) for a balance of $9995 from another financial institution for the same debt. My question is how should I go about this in my response, should I show the documentation of my satifaction to the other company or hold off to their response, and just deny the the debt???

Asked on 6/22/11, 11:38 am

2 Answers from Attorneys

Richard Groves Law Office of Richard Groves

Seek knowledgeable legal advice from an experienced consumer attorney before you have a judgment on your record.

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Answered on 7/11/11, 4:22 pm
Scott Hyder Law Office of Scott W. Hyder, PLC

So long as you have evidence that you completed all agreed-upon payments, you probably have a defense. However, it is common for people to make payments to try to satisfy a debt, thinking that there is a final payment in sight. Most creditors will just try to get you to keep making payments, but they will add so much interest and penalities that you will end up paying for it forever. So, make sure you have something in writing saying you fully satisfied the debt.

Depending on what other debt you have, you may want to consider filing bankruptcy.

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Answered on 7/12/11, 5:57 pm

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