Case Study – Monica’s Debt Collection
Monica got sued by her bank for unpaid debt after she lost her job.
Monica applied for a credit card from Friendly Bank to build her credit. She didn’t overspend and paid on time for five years. Then, she lost her job. She continued to pay her Friendly Bank credit card bill for several months, until her pockets were empty. She moved in with her sister, and for the next six months pounded the pavement looking for a job. During that time, she tried to renegotiate the loan, but Friendly wouldn’t budge. Three weeks after she found work, the bank sued her for unpaid debt. She came to Courtroom5.
STEP 1 – Monica Gets Training
In courses and workshops, Monica learns how to analyze her case, identify the issues, and connect elements of a claim to her facts. She learns about affirmative defenses and about setting goals. Her goal is a fair payment plan without extra bank fees.
STEP 2 – Monica Forms A Strategy
Monica wants to settle. Her strategy is to raise litigation costs until the bank sees that it’s cheaper to settle than to fight. Using a template, Monica writes and files a Motion for Extension of Time and uploads her motion.
STEP 3 – Monica Makes Good Use Of Claims Analysis
Monica analyzes the claims against her and identifies several affirmative defenses. With this knowledge, she prepares a Motion to Dismiss and begins to draft her Answer and Affirmative Defenses.
Step 4 – Monica Presses Her Case
After moving to dismiss, Monica begins discovery. She doesn’t file her answer and affirmative defenses until the judge orders it. She answers and asserts a huge list of affirmative defenses and sends multiple rounds of discovery. Monica conducts depositions to keep the bank’s lawyer busy and billing his client. She responds to everything the opposition files, objects to their discovery requests, and forces them to compel discovery. During a delay in the case, Monica moves to dismiss for failure to prosecute. Eventually, the bank breaks.
The bank settles the case, offers Monica a fair payment plan, and pays her court costs.