You Have Been Sued.
Do Not Panic.
You Have Options.
You may be asking, "How can I successfully fight a credit card collection lawsuit if I owe the debt?" The answer is that there are many successful defenses you can assert when you are sued for debt, even if this credit account or debt is yours.
One example is the defense that the "Statute of Limitations" has run. This means that the debt collector sued you after the legal deadline. A good consumer attorney can file an answer asserting the Statute of Limitations as a defense to your credit lawsuit.
Another example is the defense that the debt collector that sued you does not have enough evidence against you, such as the original credit card agreement or any of the credit card statements. A lawyer defending a credit card lawsuit such as this can get the case dismissed for lack of evidence or for improper procedure.
Many times the amount of your debt lawsuit is grossly higher than the original debt owed, because the debt collector that sued you has added illegal fees, interest, and collection attorneys fees. Because of this, having a lawyer fight your debt lawsuit can at the least result in a drastic reduction in the amount of debt owed during settlement negotiations.
If you are sued for debt, or are facing a credit card lawsuit, you may also have valuable counterclaims against the debt collector that sued you. This means you may be able to sue the debt collector back for violating Fair Debt Collection Practices Act (FDCPA) or the Fair Credit Reporting Act (FCRA). A good consumer lawyer can tell you if your collection lawsuit will allow you to bring a lawsuit against the debt collector that sued you, and how much money you could be awarded. If you have been sued for credit card debt, the lawyer can also make you aware of other defenses and counterclaims.
If a credit card sued you, having a lawyer answer your debt lawsuit or credit card lawsuit will prevent a default judgment against you, and protect your assets and income, keeping the debt collector away from your money and your home. You have nothing to lose by getting a Free Case Evaluation by a qualified attorney.
If you have been served a collection lawsuit, another option is to file for Bankruptcy Relief. This is a comprehensive solution to your debt problems and is good if you have a lot of debt in addition to your collection lawsuit. A successful Bankruptcy may stop your debt lawsuit and clear away most or all of your other debts. It will also force debt collectors to leave you alone and to come off your credit report (Giving you a Fresh Start). If credit cards sued you after your bankruptcy (unlikely), those debt lawsuits would be a bankruptcy violation.
There are typically 2 types of Bankruptcy available to consumers: Chapter 7 and Chapter 13. In a Chapter 7 Bankruptcy, most or all of your debts (including collection lawsuits) are cleared away quickly, and you receive a Fresh Start called a "discharge." Any pending debt lawsuits against you are dismissed, and discharged debts are never allowed to contact you again. Although the bankruptcy can stay on your credit for up to ten years, you are able to start re-building your credit right away. Many people have credit scores in the 600's and 700's 12 - 24 months after their bankruptcy. In order to qualify for Chapter 7, you must speak to an attorney to make sure your income is not too high, and to make sure you don't lose any assets (most people do not lose any assets). To learn more, and to see if you would qualify for a Chapter 7, please complete our Free Case Evaluation: Free Case Evaluation.
In a Chapter 13 Bankruptcy, you are put into a court-administered payment plan for 3 - 5 years. You may be required to pay back some or all of your unsecured debts. Why would somebody do a Chapter 13? A Chapter 13 will save your house from a foreclosure if you stick to the payment plan. It stops debt collectors from suing you and from calling you. A Chapter 13 may also be the only kind of bankruptcy relief available to somebody with high income who does not qualify for Chapter 7. If you are being sued on a debt, the Chapter 13 will "stay" or put on hold the credit card lawsuit against you. All communications regarding your debt lawsuit will be through the bankruptcy court instead of to you. To see if a Chapter 13 would benefit you, please complete our Free Case Evaluation: Free Case Evaluation.
