NOTE TO READERS:

This publication contains the opinions and ideas of its author. It is intended to provide helpful
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Copyright 2014 by OMIT Enterprises, LLC

TABLE OF CONTENTS

Introduction
Chapter 1: Your Debt Situation
Chapter 2: Prepare yourself and your household for battle
Chapter 3: The lawsuit has been filed
Chapter 4: You were successfully served
Chapter 5: Collection on the default judgment
Chapter 6: Statute of Limitations (Time-Barred Debts)
Instructions for Appendices B, C, and D
Appendix A: Do Not Call letter
Appendix B: Defendants Answer
Appendix C: Request for Production of Documents
Appendix D: Defendants First Interrogatories

Introduction:
Greetings! If you are reading this, I am assuming that you are swamped in credit card debt that has
become unmanageable and impossible to repay. You may feel stressed, worried, depressed and afraid
of whats next. If the letters and phone harassment have started, you may feel like a victim without
options. I have been there and empathize.
When my financial problems began, I tried to manage repayment with my creditors and was
unsuccessful. I consulted with an attorney and decided bankruptcy was not helpful for my situation as a
result of the Bankruptcy Reform Act of 2005. What was I to do? I come from the school of thought
when there is a will, there is a way and got to work. I spent hours reading articles, blogs, and
discussion boards and with some trial and error I put my system together to solve my problem. What
was the problem you might ask? (1) I do not have the income to repay this debt, (2) the bank must
assume risk as well since, in my opinion, this is not a zero sum game (meaning the bank wins no matter
what and I lose), and (3) I need a fresh start and I have to make it happen without bankruptcy.
Between the harassment and unethical tactics of my creditors and the banks getting a bailout in 2008, I
made the decision to fight and to WIN! Winning means: no one gets one cent of mine. In the fight
against collection agencies winning means: THEY GET NOTHING! Since you are reading this, you must
have tried all other options (to include a lawyer) because what I propose will be viewed as radical in
terms of fighting the debt collection companies. Other people who fight debt collectors use many
tactics and I have found from my own experience that it was a waste of time. We live in a Gangsters
Paradise and you will lose if you fight by their rules. You have to make your own: GO GUERRILLA! In
order to win, you will have to fully adopt the approach I used as if it is a religion and you cannot deviate.
If you deviate, then my experiences and tactics will not help you. Its all about mind over matter.
The rest of this E-book will be an exploration of my personal situation as well as the mindset, skills, and
strategies that I used to fight the collection agencies using Debt Guerrilla Warfare tactics (DGW). I wish
you the best in your fight.

CHAPTER 1: Your Debt Situation

We live in an individualist society; you think for yourself and the buck stops with you. So when financial
problems arise we have a tendency to beat ourselves up or others judge us as losers. We are told that
we are accountable for our financial affairs and therefore we deserve what we get. I agree to a point,
but most individuals are not aware that as we have taken on debt over the years, banks have knowingly
made foreign investments that sent jobs overseas and thereby making Americans unemployed or
underemployed. This has resulted in Americans taking on more debt to sustain their standard of living,
therefore, some Americans are now unable to repay debt taken out in the past thinking they would have
the income to repay it in the future. Further, monetary policy has caused price inflation (rising prices for
things we need).
The moment you sign the credit card receipt at the store, credit money is created with your pledge to
repay it. You must repay it with your earnings from your daily labor. However, the credit card
institution loaned you money that was created out of thin air. Banks do not have actual money on hand
to loan it out (Google Money as Debt video; also Google fractional reserve banking). That is very
different from a family member or friend making a personal loan to you. The family/friend actually had
to work to possess the money they can loan to you.
In order to grow the economy, individuals, corporations, local and state governments, and even the
Federal government have to continually go further into debt (National debt issues anyone?). So, now
that I cannot repay my personal debt that was created out of thin air when investment banks knowingly
made investments that would destroy U.S. jobs and made it harder for Americans to repay their debts
(Bankruptcy Reform Act 2005), should I really care? I think not. If I owe a debt to a friend or family
member or any person who loaned it to me from their hard work, I will repay it and it would be my first
priority. So I defaulted on my credit cards and a private student loan. After I defaulted, no one ever
received a dime and even with two successful judgments against me, they still never got a penny from
wage garnishment. The Statute of Limitations finally passed and no collection agency can sue me now.
How did I do it? It cant be done conventionally, but via Debt Guerilla Warfare (DGW).
So do not feel guilty or morally deficient. With more time, more and more Americans will be defaulting
on their debts because the economy will continue to worsen until we finally have a big reset crash. This
is about survival and you are a survivor and a winner.
TIP: Private signature student loans are treated like credit cards (Not a federally backed student loan).
What is Debt Guerrilla Warfare (DGW)?
DGW is both a state of mind as well as strategies I used that are radically different from traditional
approaches. For you to be successful, you will have to be stubbornly determined that you will beat
these collection agencies (CAs) no matter what and NOTHING ( e.g. letters, threats of lawsuits, lawsuits,
knocks at the door etc) will make you fear them. There is nothing to be afraid of because not paying
your credit card debt is NOT a criminal offense. All the scare tactics that CAs deploy are just
psychological warfare maneuvers that they commit against YOU.
All warfare is based on deception.- Sun Tzu, The Art of War.

What is winning?
A win in DGW means that the enemy does not get any money. That is the whole point of DGW. Along
the way, you will win some battles and you will lose some. But as long as they cannot collect on their
judgments, you still win. A collection agency that is determined to collect on your debt will spend two
to five hundred dollars towards that effort and if they get ZERO, yet invested money and time, then that
is a double win for you!
What does the battlefield look like?
The debt collection battlefield is an information based battlefield. Their greatest weapon is information
about YOU. You must do all that you can to protect your privacy from this point on and forever. Ideally,
you would already have a zero footprint on the internet and social media. Further, you should avoid
revealing your primary employer on documents that might get added to your credit file. I still have the
same part-time job today that I started in 2000. Over the years, out of habit I only used my part-time
job on documents that found their way to my credit file, which helped me later on in fooling the CAs.
When they see long-term employment on your credit report, they assume its your full-time job.

Protecting your bank account information

You must protect your bank account information. The moment a court judgment is rendered against
you, I advise that you immediately close your bank accounts if you have ever sent a check or authorized
a phone check with the CA that obtained the judgment. From this point on, keeping your bank account
information private is of the utmost importance.
Where is the best place to bank? Ideally, the best bank would be a small bank that is located in another
state. If you live close enough to a state line and can physically open an account in another state, then
thats your best option. You can also open a brick and mortar bank account in another state by way of
the internet or by snail mail. If a CA goes after your bank account via bank garnishment, the CA will have
to file with the court in the state where your bank account is located (even if they find it, which in most
cases they will not, it still costs them more money). At some point CAs give up when their budget is
used up. Another option is internet banking. If you can find a good internet bank, then go for it. A prepaid debit card account might also be a viable choice. Before you even set up a new bank account, I
would suggest a Pay Pal account with a debit card. (PayPal is immune from bank garnishments). Your
last option would be a small bank that is in another part of town or the next town or suburb away from
you. CAs tends to locate bank accounts by contacting all banks that are in the vicinity of your address. If
you bank with a mega bank, they will find you the easiest. This is also the case if one of your creditors is
a Credit Union that is located in your state. They collect using their own in-house staff and they have
knowledge of where you bank if you made payments to them. So if one of your creditors is a local
Credit Union and you have written checks to them, then you must close your bank account and open an
account elsewhere.
TIP: If you ever wrote a check to the CA that is suing you, they already know where you bank.

TIP: Be wary of cashing those nominal refund checks you get in the mail (e.g. $2.96 refund for
overpayment). Unless you know that you overpaid with a particular institution then cash the check,
otherwise it could be a CA using a front that is, in fact, issuing the refund check as a way to find out
your bank information when you deposit or cash it.
TIP: Have all of your deposits go into a Paypal account and use the Paypal debit card for your purchases.
If you need to write checks, then deposit those funds into your checking account from Paypal. This way,
if youre ever caught off guard by a bank garnishment, the CA only gets the few dollars you keep in the
checking account (CAs cannot garnish Paypal accounts).

Psychological Warfare: Fear, Intimidation, and Embarrassment

CAs engage in various forms of psychological warfare to force you to pay. In this current economy, they
are focused on cash flow. Using psychological warfare to scare you into repaying is cheaper for the CA
than utilizing the courts; therefore, do not fall for their tricks!
Most of their intimidation and fear tactics are done over the phone. The uninformed person that does
not know his or her rights will fall for CAs lies and will lose. Your best weapon? Playing dead! The CAs
are predators and they see you as their prey. Just as in the wild, playing dead works; therefore, you
must have ZERO contact with CAs. Do not ever answer their phone calls. They record all calls and any
piece of information -no matter how innocent you may think it is- will be used against you. So, no
phone contact EVER! If you accidentally pick up, just hang up.
If you receive calls on your smartphone, block them. If you have a land line and they call, block them as
well. Allowable numbers to block tend to be limited on the land line. I utilize a program called
Phonetray Pro. One can block unlimited calls with a message that says this number has been
disconnected. Further, it logs all incoming calls. Check them out and see if its something for you.
If they cant get you at home, they will try and call you at work, contact your neighbors, and even family
members. Although they do not fully disclose the reason for locating you, everyone knows whats up.
So develop tough skin and do not feel embarrassed when it starts. CAs harassed my neighbor and it was
embarrassing. I was most ashamed when they called my job and called every extension in the office
trying to get a hold of me. I put on my DGW attitude and am no longer embarrassed.
TIP: It may go against your employers policy, but remember, you are a DGW. Change your voicemail to
a message that sounds like its a home answering machine instead of an office voicemail. If you cant
get away with that (I got away with it, my job did not involve phone work and luckily the boss only called
when I was at my desk and never got voicemail) at a minimum do not leave your name in the message.
Thats how they will confirm your work number then put it on your credit report for other CAs to see.
My work number was listed on my credit report as my home number. How did this benefit me? They
never were able to find out and confirm my full-time job (which kept it off the credit report as an
employer) because the CA assumed it was my home number. Remember, you have to lead them on
wild goose chases, the more they chase the more money it costs them to collect. When they reach their
budget, they give up.

The letters will arrive before the phone calls. Develop a filing system for each credit card/loan you have
defaulted on. As the letters arrive, read and save them all in your files. Once you find out who the
collection agency is, Google them. Find out as much information as you can about them. There are
plenty of discussion boards out there and individuals share their experiences and you can learn from
them. You will find out how aggressive the CAs are and how far and how low they will go to pursue you.
He who has the most information wins and the key is for your enemy to know as little about you as
possible.
To know your Enemy, you must become your Enemy.
Sun Tzu, The Art of War.

The DO NOT CALL LETTER

The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates the collection practices of
debt collectors. You can review the entire law for yourself and there are many things you as a consumer
can do but I have found most of them to be of little use in my personal situation. So as a DGW, I did a
lot of reading and found ways of throwing monkey wrenches in terms of procedures etc that CAs use
and thats how I won. The debt collection industry is like one big machine and sometimes its the little
things that can break it down when they pursue you. If you work with a lawyer, he/she will never tell
you the loopholes and ways that you can use. By understanding the law you can throw monkey
wrenches at the machine that is after you and win. So, I will only focus on those parts of the FDCPA that
was most useful for me.
There is no law that says one must talk with a CA on the telephone. The only communication I ever had
was the Do Not Call letter. I sent the CA a Do Not Call letter Certified (that lets the CAs know that you
know FDPCA) and they stopped calling within 30 days; even Sallie Mae stopped calling! Some CAs will
continue to call because they are desperate for revenue but they will be breaking the law. Some debt
victims have logged the CAs calls and proceeded to sue them for compensation under the FDCPA.
See Appendix A for a sample Do Not Call letter

TIP: When you send a Do Not Call letter do not use your personal, work, or address of a family member.
Use a previous address or an address of a friend that rents and relocates often. By using your address,
you just verified to the CA where they can serve you with a lawsuit. Also, this will throw them off and
they will update your credit report with the other address which will confuse other CAs that might be
after you.
TIP: Should you move to a new address at any time during the DGW process, do not leave a forwarding
address with the Post Office. CAs will find out your new address and it will make their job to collect
easier.

CHAPTER 2: Prepare Yourself And Your Household For Battle

Now is the time for you to prepare yourself for battle. At this point, you are committed to winning and
have fully adopted the DGW attitude. If you are single and live alone, the fight is much easier. If you
live with roommates or live with family or have a household to manage, it gets trickier. Whatever your
living situation might be, it will be to your advantage if you have good relationships with those you live
with. Roommates, family members (especially children) will get upset from constant collection calls and
knocks at the door when lawsuits are filed. Always reward them for their patience.
Treat your men as you would your own beloved sons. And they will follow you into the
deepest valley. -Sun Tzu, The Art of War.
You cannot fight these CAs in secret if you do not live alone. You will have to inform your roommates,
spouse, children, and family members of your situation and what will happen during this process of
fighting the CAs (outlined later in the book), and what they must do to help you win. They must:
1. Never answer the phone to an unknown caller.
2. Never answer the door when you are not expecting a visitor.
3. If a family member or roommate is approached by a process server, they are not to
acknowledge that they know you.
Those rules are easy to follow, rule 1 and 2 make good common practice for life in general. The phone
harassment will be heavy the first two months but with the Do Not Call letter and using phone blocking
services, calls will be greatly minimized to almost non-existent.
The war has begun: You have defaulted and collection begins
A process flowchart of the collection process is located on the following page. Every step of the way, I
will provide you with DGW tactics to mess up their collection attempts so that you can win!

COLLECTIONS PROCESS CHART

Default on Debt

Third party CA
obtains
judgement

Third party CA sends

demand letter for
collection of
judgement

Original creditor
attempts to
collect

Third party CA files

lawsuit

Collections are
unsuccessful so
original creditor
charges off debt

Third party CA
purchases debt

Third party CA
attempts to collect
via phone calls

Third party CA
sends demand
letters

Third party CA files

for garnishment

Charged-off Accounts: Your credit account begins with the original creditor (OC). This is where the
origination of your account occurred. When one defaults, the OC will attempt to collect themselves by
calling you and sending demand letters. Because they are the original credit issuing institution, the
FDCPA laws to not apply. You cannot send them a Do Not Call letter; just block their calls and file away
all written correspondence in case you need to refer back to them at a later date. After 180 days of
delinquency, credit card accounts are charged-off. Installment loans (e.g. private signature student
loans-not federally backed) are charged off after 120 days of delinquency. Once you are delinquent,
never pay towards that account ever again with any CA. The date of your last payment starts the Statue
of Limitations (SOL). If you ever make a payment again, it will start the clock all over. More on SOL in
Chapter 5.
TIP: Always save every piece of correspondence that you receive.
TIP: FDCPA does not apply to original creditors
What happens next? A combination of things can happen:
Third-party debt collection agencies: They are hired to collect on behalf of the original creditor.
Sometimes, the original creditor sells the account at a discount to a third-party CA. The third-party CA
collects on its own behalf. Here, FDCPA applies. When the letter arrives, just file it away. Some debt
warriors suggest that you request a debt validation letter from the CA. That is a total waste of time if
you know you opened the accounts and defaulted on them. Save that tactic for later in the event you
are sued and they are successful at serving you. As you discover which CAs are coming for you its

important for you to research all you can about them by accessing discussion boards, complaint
websites, YouTube videos etc. Google the name of the company and read all you can. During your
investigation process, you will find clues to fight the CAs. Im just here to share with you how
researching helped me. You will have to do your own research and information gathering.
Victorious warriors win first and then go to war, while defeated warriors go to war first
and then seek to win-Sun Tzu, The Art of War.
When the phone calls start, do not answer them; block the numbers if you can. Blocking is a great tool
but many collection agencies use hundreds of different phone numbers that a computer dials;
therefore, it might take some time to finally block every one of them. Send the Do Not Call letter (See
Appendix A) certified mail to each CA that is attempting to make phone contact. From that point on,
play dead. No communication with them until they successfully serve you with a lawsuit (if they can get
you served successfully that is).
TIP: Playing dead works best.
TIP: FDCPA applies to third-party debt collectors

CHAPTER 3: The Lawsuit Has Been Filed

After numerous attempts to contact you have failed, the next CA tactic is to sue you. Once collection
efforts begin, you and your household should be mentally prepared for unannounced knocks at the
door. As stated before, never answer the door when you are not expecting company.
Your first clue that a lawsuit has been filed is when you start receiving solicitation for legal services.
When a CA lawsuit is filed, a mailing list is generated to law firms looking for clients. You will receive
letters notifying you that a suit has been filed and sometimes they even furnish you with the case
number. About two weeks after the lawsuit is filed expect a knock at the door. The first few times, I
was terrified. My heart was racing like crazy but after a few times I was like Yawn, whatever, and kept
on with whatever I was doing.
You have to believe in yourself. Sun Tzu, The Art of War.
What exactly is Service of Process?
When a civil lawsuit (debt collection suits are civil, not criminal) is filed, a marshal, sheriff or private
process server gives you appropriate notice of a civil legal action that is taken against you. If you have
been properly notified (generally in person, some states can allow for other means of process) then you
are giving the court permission to exercise its jurisdiction over you so that you can respond. Very
important, if you accept process, then the court has control over you. If the person serving you
personally made contact with you, then you are considered served. You can be served in some states by
mail as well as by publication, but this is rarely done (research other forms of process for the state you
live in).
So what do you do if you do not want the court to have jurisdiction over you? You avoid accepting
process by playing dead. If there is a knock at your door, do not answer it. Generally, private process
servers will come by your home on a weekend morning to catch you or during the evening around 8
p.m. on a weekday. The sheriff or marshal tend to come in the morning around 8 a.m. or just after lunch
around 1 p.m. (might be different in your location but these are general guidelines from my personal
experience). During those times of the day it is best to structure your activities in a quiet manner and
away from the front door of your home. Keep ground level blinds and the garage door closed. Always
give the appearance as if no one is home. Its a challenge when you live in a detached house because
they may walk around the house and try to look into windows, etc. Those who live in apartments and
condos have it easier.
I live in a condominium with 24 hour security. In order for anyone to make it to my front door, I would
have to buzz them in twice. So when I got a knock at the door and I did not buzz anyone in, I knew it
was bad news (a process server) and I just ignored the knocks and continued with what I was doing
whether it was watching TV or cooking dinner.
There is no law that says you have to answer just because someone knocks at your door unannounced.
Generally, the sheriff and marshal knock loudly with authority. The first time will scare you but just be
strong and ignore it; remember, they are there for a civil matter, not a criminal one. So you do not
have to do anything. Your neighbors might see them at your door and wonder (yes, its embarrassing),
but you are in this to win, so who cares what the neighbors think?

Private process servers tend to knock softly but there are some obnoxious ones that will try and
intimidate you with loud aggressive knocks. Just ignore them; always give the appearance that you are
not home. You must continually coach your household and give them praise for their efforts because it
will be a stressful but temporary process for them. Generally, they will make 3 attempts to serve you
and then give up. After the third try things can go in either of two directions: they will attempt to serve
you again at a later date or they will give up and the case gets dismissed.
Remember, the CAs have a pre-set budget with which to work from. If the balance is a smaller one, (e.g.
less than $3,000 dollars), the budget is smaller and those are the ones that are the easiest to shake off.
Larger balances (e.g. $10,000 plus), the budget is larger and their efforts will be more aggressive.
Remember, the key is to get them to spend as much money as possible so that they reach a point where
its no longer financially feasible to pursue you.
Convince your enemy that he will gain very little by attacking you; this will diminish his
enthusiasm-Sun Tzu, The Art of War.
There is a fifty-percent chance that they will give up after attempting to serve you. If the balance is a
large one, they may attempt a second time. I had an aggressive collection agency make 9 attempts to
serve me (unsuccessfully that is) and each time it cost them money. One day, a letter arrived from the
court stating that the case was dismissed. I win, they lose! DGW style!

TIP: Once you are aware of a forthcoming lawsuit it is important for you to research the service of
process laws for the state you live in.
TIP: Always play dead, never answer the phone when you hear knocks at the door. Sometimes they will
call you while at your door. If someone answers the phone, that may give them some gray area to
consider you served.
TIP: Do not be afraid when they start knocking at your door, its part of the psychological warfare to
make you give up and just pay. Be strong, your stubbornness in not cooperating is your winning
strategy. The moment you get scared and cave in, you lose. Stay strong and committed to winning.
TIP: If you are expecting Fed Ex or UPS deliveries, track them and immediately bring the packages inside
the home once delivered. I messed up and got served because I had a UPS package at my door and they
were able to use that as proof of serving me in person.
TIP: If you cannot be served, then you CANNOT be sued!

CHAPTER 4: You Were Successfully Served

Some way, somehow you got served. Its annoying when you get served but dont worry, they won the
battle but your goal is to win the war. So what do you do now? You respond. You must answer within
30 days and I will show you how. Why do you want to respond? Because the more you go back and
forth with the law firm in writing by way of the courts, it drives up the collection costs and some firms
just give up and do not even reply because the budget just got blown. Here is an example from my
personal situation:
Collection Activities and Expenses
Filing Fee for lawsuit

$242.50

Marshal Service Fee

$25.00 per visit (goes up if you never answer the door and they
have to come out multiple times)

Private Process Server Fee

$55.00 (not sure if per visit or up to 3 visits)

Default Judgment Order Fee

$117.50

Filing fee for Garnishment

$242.50

Marshal Service Fee

$13 for first service, $6 each additional service

Private Process Server Fee

$55.00

Garnishment cost court fee

$257.50

Additional lawyer billable hours if they have to respond back and forth with your arguments: $250 per
hour.
CAs spend money on detective work (e.g. find place of employment, bank accounts etc) Average cost
is about $100 for access to various databases that provide such information and additional fees may
apply for additional information.
As you can see, suing a debtor is not cheap and at some point they will give up if the costs run over their
budget for collecting on your account. The strategy is to make them bleed by driving up their costs.
Thats DGW in action!
To secure ourselves against defeat lies in our own hands, but the
opportunity of defeating the enemy is provided by the enemy himself.
Sun Tzu, The Art of War.
My creditor gave up after I filed my answer after getting served. The law firms hope you do not respond
so that they can easily get a default judgment.

Your Answer To Service

You must respond within 30 days or a default judgment will be immediately entered. In your answer
(see Appendix B), you will basically state that you deny all material allegations contained in the plaintiffs
complaint and demand proof; at this point you now want debt validation. Then you will state a few
affirmative defenses. Remember, you are not trying to win based on brilliant legal writing and strategy.
You just want to keep them busy so that they bill more hours and hit their budget ceiling. Winning here
is driving up their costs! Unfortunately, the courts will side with the CAs; therefore they will get a
judgment. Remember, you are a DGW warrior - so what if they get a judgment, lots of luck collecting on
it - more on that later. You will prepare your answer according to Appendix B and file it with the court
and mail a copy to the plaintiffs firm.
In addition to your response, you will also launch a Request for Discovery (See Appendix C) which will
drive up their costs and lets them know that you are ready for a fight. Sometimes CAs will dismiss the
case and give up when they receive a request for discovery- a potential win for you. Formal discovery is
a tool for you to learn about the CAs side of the case. Under the Rules of Civil Procedure, you may file a
formal Request for Production of Documents before your trial date and obtain requested documents
from the CAs attorney.
See Appendix B for Request for Production of Documents
(http://www.howtowinacreditcardlawsuit.net/answering-a-summons-and-fighting-your-lawsuit/)
Lets really make them work and bill those hours. Send the CAs attorney a Request for Interrogatories.
These are questions you ask the CAs attorney to answer. The opposing party is required to answer
within 30 days.

See Appendix D for Request for Interrogatories

You will file your Answer and Request for Production of Documents and Interrogatories together within
30 days of being served. After you file your answer, the CA/CAs attorneys may write you a letter
wanting to work out a settlement/payment plan. File the letter away and do not respond. During this
process, you will never communicate directly with the CA except through the court. This is their line of
business and if you cannot afford to pay anything, then just ignore them and move forward in this
process.
TIP: File your Answer, Request for Production of Documents, and Request for Interrogatories
with the court within 30 days of Summons. See Appendix B, C, and D.

The plaintiff may make requests of you. For example, you may receive requests for the following:
Request for Production of Documents and/or Request for Admission of Facts. Just ignore the requests
and file them away. It makes no sense to reply because the CA will obtain a default judgment anyway.

The court hearing

After a few months, the court will give you a hearing date. DO NOT GO TO THE HEARING! The court
will side with the CA anyway, so why stress yourself out going there and wasting your time. Further, you
do not want to go because you may be under oath and they can force you to complete forms which will
ask for all of your employers, bank accounts, and any other assets you may have in addition to updated
phone numbers and addresses. You do not want to make their job easy, so as a DGW warrior, DO NOT
SHOW UP; let them get their default judgment. The war is not over yet!
The wise warrior avoids the battle-Sun Tzu, The Art of War.

CHAPTER 5: Collection on the default judgment

The CA has obtained a judgment. What does this mean to you? The court made an official decision
regarding your debt. They will stipulate the amount owed to the creditor which can be enforced
through wage garnishment, garnishments against bank accounts or liens against property depending on
the laws of your state. It is important that when you get to this stage, you research your state laws.
Although, I will provide you with strategies, you must know what your local laws are so that you can
carry them out properly.
Default judgment collection process flowchart:

Default judgment
obtained by CA

CA will attempt to
garnish wages

No success with wages

then will attempt to
garnish bank account

Demand letter is sent

for payment of
judgment

CA files for
garnishment with
court

No success with bank

account may try to
place lien on property
(rarely done)

Summons by court for

debtor examination

CA will try to verify

place of employment

Once the CA receives the default judgment (the court will mail the decision to you), they will send you a
Demand Letter for payment of the debt plus court fees. Just file the letter away. How long does a
judgment last? Most last 7 to 10 years and the judgment can be renewed. The majority of CAs give up
once they fail at garnishment.
Since they were unable to obtain information regarding your employment, bank accounts, and other
assets by you skipping out on the hearing, they will most likely ask the court to summon you for a
Debtor Examination. A Debtor Examination is a special proceeding to determine what assets you have
to pay the debt. At the debtor's exam, you are required to answer questions, under oath, about your
finances and ability to pay the judgment owed to the creditor. You will be summoned via personal
service just like when the lawsuit was initiated. Expect to have unannounced knocks at the door from
either the marshal/sheriff or private process server. Prepare your household once again not to answer
the door and always appear not to be home. They will most likely make three attempts and then give
up. They made numerous attempts to serve me and they were unsuccessful; a win for me! It is
important that you avoid the summons. If they are successful at serving you and you do not show up
for the Debtors Examination, the court may issue a bench warrant for your arrest (check the laws for
the state in which you reside).

Below is a sample of a list of questions that you might be asked:

1. What's your home address?
2. What's your home telephone number?
3. Are you married or do you have registered domestic partnership? If so, what
is the first name, maiden name, and last name of your spouse or domestic
partner?
4. Do you live in a rented apartment? A single family home? A condo? A mobile
home? What's the address?
5. If you live in a single family home, condo, or mobile home, do you own it?
6. If you live in a rented apartment, who pays the rent? To whom is it paid?
7. Is it paid by check? Is your rent/mortgage up to date?
8. Do you have any boarders or subtenants? If so, what are their names and
how much do they pay you each month?
9. Do you have a vacation home, recreational vehicle, or boat?
10. What's your occupation?
11. What's your social security number?
12. Are you presently employed? If so, by whom?
13. At what address? Where is the payroll office located?
14. What's your work telephone number?
15. What's the name of your supervisor?
16. What's your gross salary? What's your net salary? What payroll deductions
are made?
17. Do you receive commissions? When are you paid?
18. How much is owed to you now?
19. Do you have any part-time employment? If so, please explain.
20. Is your spouse or domestic partner employed or in business? If so, what's his
or her salary? What is the address of his or her workplace?
21. Do you own any stock or any interest in the business where you work? If so,
please explain.
22. Do you or your spouse or domestic partner have any bank checking or savings
accounts? If so, what's the name of the bank branch, and what are the
account numbers and present balances?

23. Do you, your spouse, or domestic partner have a driver's license? For what
state? What are the driver's license numbers?
24. How did you get here today?
25. What's the year and make of your car? Do you own it? Is it financed? By
whom? How is owed?
26. Do you have any credit cards? Can you get a cash advance on any of those
cards?
27. What type of retirement accounts do you have? Are you able to borrow
against your retirement account?
28. Do you have life insurance? Is it a whole life policy?
29. Do you have any property, personal effects, cash, or other assets that you've
not yet mentioned? If so, please explain.
30. Do you understand that as long as the judgment remains unpaid, it accrues
interest at the rate of 10% per year? Do you also understand that as long as
the judgment remains unpaid, it is probably damaging to your credit rating?
Do you understand that if the judgment remains unpaid, I have the right to
examine you again in 120 days?
http://www.courts.ca.gov/11187.htm

Because you did not hand over your financial information, the CA now has to spend money doing
detective work to find out where you are employed. Always force the CA to spend more money to
collect on your debt; they all have a breaking point when they will give up. You must protect your
privacy in terms of your employment. As stated earlier, never give your full-time job information to any
bank, utility, or credit application. If they do not verify employment (if not sure, give the previous
employer and if you fail verification and they come back to you, then say oops, brain fart).
Supreme importance in war is to attack the enemys strategy.Sun Tzu, The Art of War.
If the CA finds your place of employment, they will have to file for a garnishment order via the courts
which costs money yet again. Once they obtain the garnishment order, they will contact your employer
and your employer will deduct a percentage of your pay in repayment of the debt. Look this up for the
state you live in, my state is 25% (Ouch!). I was able to avoid garnishment 100% of the time but this will
work differently for you depending on your state and type of employment. For me, my full-time job was
never revealed to anyone that reports to the three credit bureaus. At my full-time job, I changed my
voicemail so that it did not identify me. I made the message appear to be a home answering machine
just in case CA detectives were calling and searching for me. Further, when I found out that my name
and picture were listed on my employers website, I had the information removed since it was not
mandatory. So the only job they could target was the part-time job.

Types of employment and wage garnishment

Job Type

Garnishment
Yes

Full-time W-2

Part-time W-2

Garnishment
No

Independent
Contractor (1099)

Self-Employed

The CA obtained a garnishment order for my part-time job but never received one penny of my
earnings. How so? I will explain in a moment. Lets review the options one has when the full-time job is
hit with a garnishment. If the full-time job is hit with a garnishment, it will be impossible for the average
person working full-time to completely avoid garnishment but here are tips on how to frustrate the
garnishment.
If you still live at the same address as when the suit was initiated, you will receive a letter from the court
and/or the CA stating that a garnishment was initiated against you. The garnishment for me didnt kick
in until about three months after the judgment, so I had time to prepare. At some point your employer
will send you a letter stating exactly which pay date they will start deducting. How do you know if they
found your job? Check with HR and ask if they received any faxed requests for verification of
employment. If they say no, then you are good; the CAs are not aware of your job. If HR says yes, find
out who sent the request. Remember the only CA that can tap your paycheck is the one that has the
court order. If its a different CA than the one who has the judgment, then youre fine for the moment.
If its in fact the same CA, then you must take these steps:
Steps to frustrate a garnishment order:
1. Prepare a budget, include income from all jobs
2. If youre not living check to check and have a some income to spare, structure your deductions
as follows:
a. Load your paycheck with deductions that have priority over garnishments:
i. Add or increase deductions for alimony or child support
ii. Increase your Federal and State Tax Withholding as much as you can

How did I get around garnishment? Let me explain; according to the U.S. Department of Labor, Wage
and Hour Division, Federal law sets the maximum amount that can be garnished in a pay period.
According to their website:
The law sets the maximum amount that may be garnished in any workweek or
pay period, regardless of the number of garnishment orders received by the

employer. For ordinary garnishments (i.e., those not for support, bankruptcy, or
any state or federal tax), the weekly amount may not exceed the lesser of two
figures: 25 percent of the employee's disposable earnings, or the amount by
which an employee's disposable earnings are greater than 30 times the federal
minimum wage (currently $7.25 an hour).
For illustration, if the pay period is weekly and disposable earnings are $217.50
($7.25 30) or less, there can be no garnishment. If disposable earnings are
more than $217.50 but less than $290.00 ($7.25 40), the amount above
$217.50 can be garnished. A maximum of 25 percent can be garnished, if
disposable income earnings are
$290.00 or more. When pay periods cover more than one week, multiples of the
weekly restrictions must be used to calculate the maximum amounts that may
be garnished. The table and examples at the end of this fact sheet illustrate
these amounts.
http://www.dol.gov/whd/regs/compliance/whdfs30.pdf

Example using my part-time job

My take home pay from my part time job was $870.00 every two weeks. Under Federal law, anything
above $435 every two weeks could be garnished. So what did I do? I increased my federal and state
withholdings on my IRS Form W-4 (yes, you will have to play with numbers for a while to make it work,
sometimes an HR rep will help you figure it out) which reduced my take home pay to approximately
$425 every two weeks. The garnishment order now cannot touch my pay and did not. I win, they lose!
DWG style!
To make up for the lost income, I reduced the State and Federal deductions from my full time job to the
minimum deduction by claiming 9 on my Form W-4 for both Federal and State. Now my monthly
income remained the same. It is important to read the garnishment order carefully because
garnishment is not indefinite. In my state, a garnishment can only last for 195 days. So, I got out my
calendar and determined the date the judgment order ended and at that later date I informed HR and
they gladly removed the garnishment order.
The CA can apply for a garnishment order again (court costs and fees again) and get another 195 days
but most will not if they did not get any money from the first garnishment order. This was so in my case.
Sometime after the garnishment ended, I had unannounced knocks at my door. I can only guess that is
was the CA trying to have the court summon me for a Debtor Examination. So, just like before I ignored
the knocks and they finally gave up for good. The CA won some battles (e.g. got me served, got a
judgment and a garnishment order) but I still won the WAR! THEY GOT NOTHING!!! I can only imagine
how much money they spent pursuing me and they got ZERO! I win, they lose.
Everyones employment situation is different but my example should illustrate what steps you need to
take when figuring out how you can frustrate a garnishment order. If you know that you are being sued,

it is smart to start looking for a new job in case they find your current job. Further, accept a job that
pays you as an independent contractor (1099). Independent contractors, as well as self-employed
individuals, are not subject to wage garnishment. If you cannot avoid garnishment to your satisfaction,
the last option is to move to another state. Garnishments do not cross state lines, the CA would have to
start the entire process all over again (more money again and at that point they may just give up and
write it off). So if youre ready for a change, for a new job elsewhere, or maybe you entered a
relationship with someone who lives in another state, then this might be a great time to relocate.
TIP: Once CAs start going after you, do not ever apply for credit during the time period within the
Statute of Limitations (SOL). Doing so will reveal where you work.
TIP: Review your garnishment order from the court to determine the length of garnishment.
TIP: For bank garnishment information, see Chapter 1.

CHAPTER 6: Statute of Limitations (Time-Barred Debts)

After time, debts become time-barred, meaning that CAs can no longer collect on the debt via the
courts. They lose their ability to sue. Legally, CAs only have a period of years to collect on debt; this is
known as the Statute of Limitations (SOL). The SOL is different in every state so you must look up the
SOL for the state that you live in (Google searches make everything so much easier).
Refer back to your credit report to determine the dates that you made your last payment to the
creditor. Thats the starting date you will need to figure out the date that the SOL runs out. Just take
the date from the report and add the amount of years to that date based on the SOL for your state.
Another reason why it is important that you know the date of last payment is because negative items
listed on your credit report automatically fall off after 7 years. That also includes student loans. In my
situation, I am just waiting for everything to fall off of my credit report. After this experience, I now live
a life of not getting into debt and therefore my credit score really does not matter to me. There are
credit repair agencies and books. I used a credit repair agency and I really did not find them helpful at
all. If it was my debt and I did not pay on it, how can I realistically dispute that and win? With the
economy in bad shape these days, credit qualification scores have been drastically lowered so Im sure
with a secured credit card, you can quickly rebuild your credit score.
TIP: When researching the SOL in your state, you need to know the SOL for both Suit on Account as well
as Suit on Contract. CAs file their lawsuits for either account or contract.
TIP: Get into the habit of obtaining your free credit reports yearly to see which CAs have made
inquiries. Keep a copy of each report in your files. You may obtain your free credit reports at:
https://www.annualcreditreport.com/index.action
After my experiences as described earlier, I just played dead until the SOL hit. I continued the same
strategies as described earlier and I made it to the SOL! I win, the CAs can no longer legally collect and
any new bottom feeder CA that buys my old debt cannot collect on it either by using the courts. I beat
out the wage garnishments and I am prepared for any attempt for a bank garnishment as well. Overall, I
paid not one penny to any CA! Thats DGW and if I can do it, then I know you can do it, too. I wish you
the best in your DGW War!

Instructions for legal forms

When utilizing the sample legal forms (Appendices B, C and D), do the following:
1. Insert your name (as plaintiff) and the creditor (defendant) where applicable as well as
the date you completed the forms. Be sure to include your state and county.
2. Make three copies of the legal documents before you visit the Court to file them with
the Clerk. One copy is for your records, one copy is to be filed with the Court, and the
last copy is to be mailed via regular snail mail (USPS) to the law firm that is suing you.
3. File one copy with the court and make sure all copies have the official stamp from the
Clerk of the Court proving you have filed the documents with the Clerk.
4. You can complete and file Appendices B, C and D with the Court at the same time.
5. You must file your Answer within 30 days after being served.

APPENDIX A

Certified Mail of Delivery Validation # _________________

From: Thomas McFreeman
123 Mainstreet
Anytown, USA 45678
To: Any collection Agency
P.O. Box 321
Anycity, USA 87654

Date:
Re: (Account Number)

Notice to Cease Communications

Dear Sir/Madam:
This is to advise you that pursuant to the Fair Debt Collection Practices Act (FDCPA)
15 USC 1692c(c), you are hereby notified to immediately terminate any contact
with me, or any members of my family or household, regarding any matter
concerning the collection of an alleged debt you attempting to collect. This notice
shall include, but is not limited to written correspondence, as well as telephone
communication.
You are harassing me by calling numerous times.
You are harassing me calling numerous times and leaving messages.
I do expressly request that you cease any communication to me pursuant to the
FDCPA 1692c.
Be advised that since I reside at the above address, you are warned that any contact
with a neighbor or other person will not be "locator" information and will be
considered grounds for legal action against you.
Please also be advised that you may not contact me at my place of employment
because my employer prohibits me from receiving such communications.
I simply wish you to cease all communication (mail, phone calls or other) with
me or any member of my household. This includes my place of employment. I
do not admit or deny liability on the debt. I just want you to stop contacting
me.
I intend to keep a log of any contacts you make with me after you receive this letter. I
am aware that further communications by you will make you liable for $1,000.00 per
communication, plus actual damages and attorney fees.
You may contact me by mail to tell me that you are ceasing communications.
Sincerely:
________________________________

Thomas McFreeman

APPENDIX B
IN THE STATE COURT OF ________________ COUNTY
STATE OF ____________

)
)
)
)
)
)
)
)
)
)
)

Plaintiff,

V.

Defendant

Civil Action No. _____________

Defendants Answer

Comes now the Defendant, insert your name, and for cause, states the following:
1. Defendant denies all of the material allegations contained in Plaintiffs complaint and
demands strict proof thereof.
2. Plaintiff has further failed to state a claim upon which relief can be granted. There has been
no tortuous injury.
3. Defendant further asserts the following affirmative defenses:
A. Statute of Frauds with respect to Plaintiffs Complaint on account
B. Fair Debt Collection Practices Act
4. Defendant intends Discovery pursuant to the insert your state Rules of Civil Procedure.

Prepared and submitted by: Your signature

Type your name

Certificate of Service

I, ____________(insert your name), certify that on_______________, 20___, I mailed a true and
correct copy of the above foregoing Request for production of documents and notice to produce
via USPS First Class Mail, postage prepaid to the following:
Name of Law firm
123 MAIN ST.
Any City, USA 30487

Your signature
Type your name

APPENDIX C
IN THE STATE COURT OF ________________ COUNTY
STATE OF ____________

Plaintiff,

V.

Defendant

)
)
)
)
)
)
)
)
)
)
)

Civil Action No. _____________

REQUEST FOR PRODUCTION OF DOCUMENTS AND NOTICE TO

PRODUCE TO DEFENDANT

TO: Name of law firm

123 MAIN ST.
Any City, USA 30487
You are hereby requested to produce the following documents within thirty (30) days.
DOCUMENTS TO BE PRODUCED
1. Please provide the actual credit card contract upon which your Complaint is based on.
2. Please provide a contract, agreement, assignment, or other means of demonstrating that
the Plaintiff has the authority and was legally entitled to collect on the alleged debt.
3. Please furnish reasonable proof, such as an original, or copies of the assignment
agreement or assignment agreements, transferring the alleged contract and/or account in
question from (NAME of ORIGINAL CREDITOR OR BANK) over to (NAME
COLLECTION AGENCY/DEBT BUYER) to show an Assignment has been made and
that (NAME OF COLLECTION AGENCY/DEBT BUYER) are the real party in interest.
4. Please provide a copy of the Assignment between (NAME OF COLLECTION
AGENCY/DEBT BUYER) and (NAME OF ORIGINAL CREDITOR OR BANK).
5. Please provide evidence /proof of the Defendants alleged debt to Plaintiff, including
specifically the alleged contract, between the Plaintiff and Defendant or any other
instrument constructed solely for the purpose of creating a loan agreement between the
Plaintiff and Defendant bearing Defendants signature and/or Please produce the contract
that legally requires the Defendant to pay the amount entered into complaint.

6. Please provide the original or copy of the account agreement that states interest rate,
grace period, finance charge, assignment, and specifically the State Laws that the
agreement and account are governed plus other important facts.
7. Please provide copies of the amount paid and/or the consideration due for the alleged
contract/account.
8. Please provide an itemized account of all transactions mentioned in Interrogatory
Number Eighteen (18).
9. Provide the Record of Assignment that displays the information in Interrogatory No.
22.
10. Please provide all copies of manuals, procedures, and protocols used by Plaintiff
regarding communication with ____________________ regarding purchased debt.
11. Please provide evidence of authorization of Plaintiff to do business, create loans,
issue or extend credit, collect debts and/or operate in the State where the Plaintiff
conducts their business.
12. Please provide evidence of authorization of Plaintiff & Attorney to do business,
create loans, issue or extend credit, collect debts and/or operate as a financial business in
the State of ______.
13. Please provide a document or document(s) that proves you did send the Defendant a
notification of assignment of the account or assignment of rights.
14. Please attach any and all notices sent to Defendant by Plaintiff in regards to this
account demanding payment.
15. Please attach copies of all statements generated while this alleged account was open
with Plaintiff.
16. Please attach a complete and accurate history of the interest charged on this alleged
account with Plaintiff. Show the exact dates those interest rates changed and list the
various rates that were charged during this debt and the exact method of amortization.
17. Please attach any and all notices sent to Defendant by Plaintiff announcing changes in
interest, fees or penalties and/or the terms of this alleged debt.
18. Identify each Credit Reporting Agency (credit bureau) to which the Plaintiff reported
Defendants debt and the dates of each such report.
19. Please provide the original dunning letter that was sent to Defendant.
20. Please attach any and all notices sent to Defendant by Plaintiff in regards to account
announcing transfer and/or assignment of credit card account from Plaintiff to any
collection agency or collection attorney.
21. Please attach a copy of the agreement with Plaintiff that grants ATTORNEY NAME
HERE Attorney(s) the authority to collect this alleged debt.

Prepared and submitted by:_______________________________ (insert your name)

Defendant

Certificate of Service

I, ____________(insert your name), certify that on_______________, 20___, I mailed a

true and correct copy of the above foregoing Request for production of documents and
notice to produce via USPS First Class Mail, postage prepaid to the following:
Name of Lawfirm
123 MAIN ST.
Any City, USA 30487

___________________
Your name

APPENDIX D
IN THE STATE COURT OF ________________ COUNTY
STATE OF ____________

)
)
)
)
)
)
)
)
)
)
)

Plaintiff,

V.

Defendant

Civil Action No. _____________

Defendants First Interrogatories to Plaintiff

TO: Name of law firm

123 MAIN ST.
Any City, USA 30487
You are hereby requested to answer the following questions within thirty (30) days by filing your
response with ___________________.(insert your name)
1. Please state the name, address, employer and job title of the individual answering these
questions.
2. Please state the name, address, employer and job description of the individual, who entered
into a contract for repayment of debt with the defendant.
3. Please state the date and time when the agreement for repayment of debt was reached with the
defendant.
4. Please state the names, addresses, employer and job description of all individuals whom you
intend to call upon as witnesses to sustain your burden of proof in this matter.
5. Please state all facts you intend to introduce at trial to sustain your burden of proof in this
matter.
Prepared and submitted by:_______________________________ (insert your name)
Defendant

Certificate of Service

I, ____________(insert your name), certify that on_______________, 20___, I mailed a true and
correct copy of the above foregoing Request for production of documents and notice to produce
via USPS First Class Mail, postage prepaid to the following:
Name of Law firm
123 MAIN ST.
Any City, USA 30487

Your signature
Type your name