We’re Using ChatGPT To Fight A $37,000 Lawsuit

Summary

Episode Overview

Episode Title: We’re Using ChatGPT To Fight A $37,000 Lawsuit
Podcast: The Ramsey Show Highlights
Date: March 14, 2026
Theme:
This episode dives into a listener’s real-life struggle with a $37,000 debt lawsuit, after years of financial difficulty. The hosts guide her through practical next steps, addressing emotional distress, the realities of dealing with debt collectors, and strategies to potentially settle the debt—including some drastic, but effective, recommendations.
The episode stands out for its frank discussion about using tools like ChatGPT to navigate legal paperwork, and for the honest, empathetic advice the hosts offer in real time.

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Key Discussion Points & Insights

1. Listener’s Situation and Emotional State

• Case Background (00:12–02:36):

  • Lisa (the caller) explains being sued over a $37,000 old SoFi debt, originally from a $50,000 loan taken out in 2017 to consolidate debt.
  • Financial setbacks after having a baby and losing a job in 2020 led to missed payments, resulting in the debt being sold to a collector (LVNV).
  • Lisa and her husband have responded pro se (without a lawyer), using ChatGPT for guidance on legal forms and responses.
  • Lisa is visibly emotional:

    "I'm so sorry." (Lisa, 01:00) "That's okay." (Host, 01:01)
    "Stressful. Stress." (Host, 01:06)

• Use of ChatGPT (00:12–02:36):

  • Lisa notes:

    "We don't have the money for a lawyer. So we've been using Chat AI to kind of guide us through. And so far it's worked... we were able to prolong it a little bit..." (Lisa, 00:12)

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2. Understanding Debt Collection Reality

• Who’s on the Other Side? (02:37–04:35):

  • The hosts de-mystify the debt collection company, emphasizing that the intimidating letters and calls come from people in highly replaceable, low-engagement jobs.

  • Host:

    "You're dealing with someone who's sitting in a cubicle who's been on the job for probably three weeks and will probably end up leaving in two months... the intimidation factor is so big, but the reality of it's not." (Host, 03:08)

  • A little comic relief to help steel nerves:

    "I used to just imagine that they probably had more debt than I did, otherwise they wouldn't be working there. And it made me feel a lot better." (Host, 04:35)

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3. Current Financial State and Debt Inventory

• Lisa’s Financial Picture (05:12–06:33):

  • Income has improved since 2020:

    "Our income is getting up there... 204." (Lisa, 05:42)

  • Besides the lawsuit debt:

    • $58,000 in other debt (includes $11k and $15k car loans, two small loans, and credit cards)
    • Mortgage of $175,000 on a home worth about $450,000

  • Host reframes the situation, emphasizing opportunity:

    "With the numbers you're telling me, I don't see a world where you're not setting up a payment plan and... stacking up a bunch of cash to settle." (Host, 06:33)

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4. Settlement Strategy

• Should We Settle? (07:03–07:48):

  • Lisa asks if settling is the right path.

    "Do you think that we should settle?" (Lisa, 07:03)

  • Both hosts agree:

    "Yes." (Host C, 07:03)
    "Depending on how... considering this was a... You stopped really paying in 2020. It's been six years. So they're probably not expecting to really get paid, Lisa." (Host A, 07:04)

  • Recommended Amount:

    • Host recommends aiming for a 50% settlement—$15,000 on the $30,000+ claim.

    "If you could get maybe 15,000... you guys are going to have to limit your life... get $15,000 as soon as possible... hold them off till then and see if they will settle." (Host A, 07:25)

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5. Aggressive Solution: Selling Assets

• Immediate Steps and Sacrifice (07:48–08:44):

  • Suggestion: Sell one of the cars to create quick cash for a settlement.

    "What are your cars worth? ...the one that's 15,000, if you were to sell it, what could you get for it?" (Host C, 07:48) "Maybe 20 or 22." (Lisa, 07:54) "You know what I'd do? I'd sell one of these cars and be done with this today... get more money per month then I can add that up and then I can settle this debt very quickly." (Host C, 07:58)

  • Emotional permission for drastic action:

    "This has been going on for too long enough... I’d give myself 30 days to make this happen and if that means selling cars and driving junkers then that's what I'm going to do." (Host C, 08:13)

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Notable Quotes & Memorable Moments

• On Debt Collectors’ Reality:

  • "Someone who honestly has probably the worst job on the planet, who is calling and serving people old debt... the intimidation factor is so big, but the reality of it's not." (Host A, 03:48)

• On Using ChatGPT:

  • "We don't have the money for a lawyer. So we've been using Chat AI to kind of guide us through. And so far it's worked..." (Lisa, 00:17)

• On Reclaiming Power:

  • "I used to just imagine that they probably had more debt than I did, otherwise they wouldn't be working there... it made the whole thing a lot less intimidating." (Host C, 04:35)

• On Emotional Toll:

  • "I'm so sorry...I'm just nervous and then it's just very emotional." (Lisa, 01:00)

• On Bold Solutions:

  • "I'd sell one of these cars and be done with this today... I'd give myself 30 days to make this happen." (Host C, 08:10 & 08:13)

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Timestamps for Important Segments

• [00:12] – Listener describes being sued over $37k debt, using ChatGPT for guidance
• [01:00] – Emotional impact on caller
• [02:37] – Explaining how debt collection works
• [04:35] – Host shares how to mentally handle debt collectors
• [05:42] – Listener reveals current income and overall debt load
• [07:03] – Discussion of settling for less than the total amount
• [07:48] – Suggestion to sell car(s) for quick settlement money
• [08:13] – Strong encouragement to take action and end the stress

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Conclusion: Action Plan

• Reframe the stress: Remember, you're dealing with overworked and underpaid collectors—not legal masterminds.
• Stack cash for settlement: Aggressively limit spending and raise $15,000–$20,000 to attempt a quick settlement.
• Consider selling assets: If possible, sell a car to rapidly access settlement funds and relieve debt burden.
• Stay strong emotionally: The worst is likely in the past—today’s income means a real path forward.

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Overall Tone:
Empathetic, practical, and empowering—the hosts help Lisa shift from feeling paralyzed by shame and stress to taking bold action toward financial freedom. The episode is a testament to the power of confronting debt head-on, using every available tool (traditional or high-tech) to regain control.

Transcript

[A]

Brought to you by CHM, a budget friendly faith based alternative to health insurance. Chministries.org budget we have been served papers

[B]

on an old debt that we now are having to either go to court and fight it or settle. And so we don't have the money for a lawyer. So we've been using Chat AI to kind of guide us through. And so far it's worked like, you know, we've, we've been able to prolong it a little bit, so. But now, you know, I need guidance. I need real guidance on, on what to do and where to go.

[A]

How long ago was this?

[B]

Why are you.

[A]

It's okay.

[C]

Take a deep breath.

[B]

I'm so sorry.

[C]

That's okay.

[B]

Sorry, I'm just nervous and then it's just very emotional.

[A]

Yeah. Stressful. Stress.

[B]

Stress.

[C]

Yeah.

[B]

Yeah. Okay, so the debts from 27 or. We took the loan out in 2017 and then. Okay, like around 2019, it's a SoFi loan. They gave us 50 grand. It was great. We reconsolidated debt. It didn't. And so around 2019, I had a baby. And then right around the corner of 2020, all of a sudden I was home and had to quit my job. And so it was just my husband and we, we, we were kind of like, we missed a couple of payments and. But we would catch up and then right around the corner of 2020, like they just sold it off like it didn't matter. We've been fighting it ever since. They served US papers December 16, I think hoping, like we only had 20 days to respond and I think they were hoping that with the holidays, we wouldn't be able to find a lawyer and we wouldn't know what to do. We just wouldn't respond. But we did. We got it together, we put it in chat, Chat gave us some information, we sent it, they sent us back discovery, most of it redacted. And so our next, like we were going to send another request for more discovery, but instead we just sent them a pro se if they would settle and.

[C]

Yeah.

[A]

What company, what company owns the debt right now? Do you know the name of it?

[B]

Yeah. LV Envy.

[C]

And what's the LV Envy?

[B]

Yeah.

[A]

Okay. So Lisa, I need you to just understand who you're dealing with because I do think that always helps the stress level. Okay. When bad debts, whether it's loans, credit cards are sold, they sell them to a company, the company repackages them with other loans, sells it to another company, and it's been probably passed around. Okay. So you're dealing with someone who's sitting in a cubicle. If you missed health plan open enrollment, don't panic. Christian Healthcare Ministries offers a budget friendly alternative to health insurance and you can join at any time. With chm, there are no network restrictions and members say they often save hundreds of dollars a month compared to traditional insurance. So make a change that fits your budget, your values and your timing. Check out chministries.org budget to learn more. So you're dealing with someone who's sitting in a cubicle who's been on the job for probably three weeks and will probably end up leaving in two months. Cause the turnover rate with collectors is constant. It's constant. Okay. So it feels scary and it's a big number. Right. So we're have to address it. But I do want to take some of the stress off of who it is. It's someone who honestly has probably the worst job on the planet, who is calling and serving people old debt. And again, the intimidation factor is so big, but the reality of it's not, Lisa. So we have to deal with it. So I'm not minimizing the situation, but I do want you to just realize the person you're talking to or who even wrote the letter to Servant's probably not even gonna be there in 60 days. It's gonna go on to someone else and then the company envy or whatever.

[C]

Ellen. Lvnv it's okay. Okay.

[A]

There you go.

[C]

Yeah. You know what, Lisa? I used to, back in the day when the credit card companies used to call me and debt collectors used to call me, I used to just imagine that they probably had more debt than I did otherwise they wouldn't be working there. And it made me feel a lot better. Like it just, it made the whole thing a lot less intimidating. Yeah. Have you offered. So you have no money right now. Have you offered to do any sort of payment plan?

[B]

So in the past, like the past couple of years, we did a payment plan for like they'll do one for like 12 months and then after that amount of time they'll hit you back up and they want the whole amount.

[C]

Sure. So explain to us what's going on with your money now that over the course since 2017 and even 2020 on where we haven't been able to kind of stack together any money to make any sort of deal on this or keep the payment plans going. Tell us what's going on now.

[B]

So now we're doing better. Like our income is getting up there in 2020. It just wasn't.

[C]

What is it today? What's your income today?

[B]

204.

[C]

Okay. And is this the only debt that you have, or do you have other debts? Okay, tell us really quickly about the other debts so we can understand how this fits in.

[B]

So we have 58,000 of, like, other debt and cars.

[C]

Tell me the two. Tell me the cars. What do they each total?

[B]

One is 11 and one is 15. And then the other debt is. I think there's two loans, like small loans and then credit cards. So. And we've been paying it down like, it was much worse than that. So there is light at the end of this tunnel. Like, 58,000 sounds really, really bad. And it is. And then we have a mortgage, and our mortgage is 175,000, but our house is worth, like, 450.

[A]

Yeah.

[C]

Okay, so I just. With the numbers you're telling me, I don't see a world where you're not setting up a payment plan and in the meantime stacking up a bunch of cash to settle. Cash to settle. I think. I think a lot of your trauma and shame about this lives in the past, because it sounds like today you have the ability to start getting this cleaned up. Unless you tell me a reason that you don't see that hope.

[B]

No, I do. Yeah. I mean, do you think that we should settle?

[C]

Yes. Yeah.

[A]

You just have to have the amount of money to settle. And depending on how. I mean, how long it's been and how long. You know, considering this was a. You stopped really paying in 2020. It's been six years. So they're probably not expecting to really get paid, Lisa. I mean, at the end of the day, they're probably. They probably assume you guys are broke.

[C]

So if you could get 50% and settlement.

[A]

Yes, that's what I was going to say. If you could get maybe 15,000. And that means you guys are going to have to limit your life. Like, you guys are going to have to be working extra. You're going to limit lifestyle. You're going to do whatever you can, and you're going to get $15,000 as soon as possible. And if you can hold them off till then and then see if they will settle. If you can somewhat get maybe back on a payment plan and then have an amount of money and say, this is what we have.

[C]

What are your cars worth? The one that's 15,000, if you were to sell it, what could you get for it?

[B]

Maybe 20 or 22.

[C]

You know what I'd do? I'd sell one of these cars and be done with this today. Hypothetically I'd sell one of these cars. If you can get 20 for it and you only owe 15 go get

[A]

a $5,000 car to settle huh?

[C]

Is it paid off or I'm sorry. Yeah I would do that. I would clear that out, get more money per month then I can add that up and then I can settle this debt very quickly. That's what I would do. It's going to be a major sacrifice but the way you cried when you came on the line. This has been going on for too long enough like far far too long and I would be going to great extents to make this better in the next. I'd give myself 30 days to make this happen and if that means selling cars and driving junkers then that's what I'm going to do.

[A]

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