Who is Cavalry SPV and Why are they Suing Me?

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Cavalry SPVCavalry SPV is a debt buyer who sues people here in Arizona.  If you are in the stressful position of having been sued by Cavalry SPV your first thought was like “who in the world are these people?”.  In fact, many people ignore the lawsuit because they don’t know who Cavalry SPV is and assume that it is either a fraud or simply some sort of debt collection letter.

However, if a process server dropped off the summons and complaint you can be certain that it is in fact a real lawsuit and there will be real consequences if you don’t file a written response to it within twenty (20) days.

What is a Debt Buyer?

Cavalry SPV falls into a category of companies that purchase old charged off debts from banks like Chase, Citibank, and Wells Fargo.  After a credit card goes unpaid for about 120-160 days many banks will charge off the debt and then sell the right to collect on it to companies like Cavalry SPV.

Many people mistakenly believe that if a debt has been charged-off by the bank that it is no longer collectible.  It is important to understand that the charging off of a debt really only impacts the taxes paid by the bank, not whether they can still come after you for it, and more importantly it does not mean they can’t sell it to a company like Cavalry SPV who can then sue on it.

A recent Federal Trade Commission (FTC) report stated that most debt buyers paid as little as 4 cents on the dollar for the debts they purchased.  This means that a $5,000 debt was likely purchased by Cavalry SPV for about two hundred bucks ($200).  In Arizona if the debt buyer can prove that they have valid ownership of the debt then they can collect on the entire amount owed, regardless of what they paid for it.

Now What Do I Do?

Now that you have been served it is important to take this process seriously.  If you lose this lawsuit Cavalry SPV will have a judgment against you and will be able to garnish your wages.  In order to avoid that you really have three options:

  • Fight it!  While it may not feel like it right now, your case is likely stronger than you think.  Often Cavalry SPV struggles to prove their case at trial.  Raising the correct objections and highlighting the lack of evidence to the court can go a long ways towards winning your case.
  • Settle it!  You can also settle the debt.  This means that you offer to pay less than what Cavalry SPV is suing you for.  In my experience they often want way more than what I consider to be a fair settlement, but sometimes they surprise me and you will be able to settle the debt for 50% or less.
  • Bankrupt it! If you have a lot of debt you may consider bankruptcy.  A chapter 7 bankruptcy will eliminate these debts in their entirety.  There are consequences to a bankruptcy filing so it is important you meet with an attorney to discuss all the implications a bankruptcy filing will have on you and your family.

No matter which route you go, the important thing is that you take action.  Whether you are looking to fight it, settle it, or file for bankruptcy you need to take action.  Bad things happen to those who believe it will just magically go away.  It won’t.  Take action.