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Being sued by a credit card company can be a heavy burden, especially when it’s accompanied by constant harassment. But it doesn’t have to be a losing battle. With the right defense strategies, you can protect your rights, stop the harassment, and fight the lawsuit effectively. Here’s how you can get back on track.
Don’t Ignore the Lawsuit
Ignoring a lawsuit won’t make it go away. In fact, it can make things worse. If you don’t respond to the summons, the credit card company may win the case by default. This means they can get a judgment against you without you having the chance to defend yourself. Once a judgment is in place, they could garnish your wages or freeze your bank account.
If you receive a summons, you must act quickly and get help from a debt lawsuit defense lawyer. Take note of the deadlines listed in the paperwork. Typically, you will have 20 to 30 days to respond, depending on your state. Mark these dates on your calendar and follow up to make sure you don’t miss them.
Read the Complaint Carefully
When you are served with a lawsuit, you’ll receive a complaint that outlines the reasons why the credit card company is suing you. It will include details such as the amount owed and the basis for the claim. Carefully read through the entire complaint. Make sure the information matches your records.
Look for any discrepancies or mistakes. For instance, the credit card company may have the wrong balance or an outdated amount. If there are credit reporting errors, you can dispute the claim and use that as part of your defense. Pay attention to whether the lawsuit is coming from the original creditor or a debt collector. This can affect how you handle the case.
Respond to the Lawsuit
You will need to respond to the lawsuit within the time frame specified in the summons. Your response is called an “answer.” In your answer, you can admit or deny the claims made in the complaint. If you disagree with the amount owed or any part of the lawsuit, you must clearly state that in your response.
Even if you can’t afford to pay the debt, you must still respond. Failing to respond can lead to a default judgment, making it harder to resolve the matter. If you’re unsure how to respond, it’s best to consult with a lawyer who specializes in debt and consumer rights.
Consider Negotiating a Settlement
Before the lawsuit progresses too far, you may want to consider negotiating a settlement with the credit card company. Many creditors are open to settling debts for less than what is owed, especially if they believe they may not win the lawsuit.
Negotiating a settlement can help you avoid a lengthy court process and may result in a more manageable repayment plan. If you choose to settle, make sure you get everything in writing. This will protect you from future claims or misunderstandings.
Consider Filing for Bankruptcy
If you are overwhelmed by debt and have no feasible way to pay it back, filing for bankruptcy may be an option. Bankruptcy can discharge or reorganize your debts, giving you a fresh start. However, bankruptcy has long-term consequences and should not be taken lightly.
If you decide to file for bankruptcy, you will need to work with a bankruptcy attorney to evaluate your options. Note that bankruptcy might not eliminate all types of debt, such as student loans or certain taxes.
Prepare for the Court Hearing
If the case goes to court, be prepared. Gather all relevant documents, including statements, letters, payment records, and anything that can support your defense. This might include proof of payments you’ve already made or documentation showing that the debt is inaccurate.
If you believe the lawsuit is unfounded or the debt is incorrect, make sure to bring all evidence that proves your case. If you cannot attend the hearing for any reason, inform the court and request a postponement. Missing the hearing can result in a default judgment being issued against you.
Understand the Consequences of a Judgment
If the credit card company wins the lawsuit and a judgment is entered against you, you have to understand the consequences. A judgment can lead to wage garnishment, bank account levies, or property liens. However, these actions typically take time, and you may have the ability to work out a payment plan with the creditor.
If the judgment includes wage garnishment, the creditor may be able to take a portion of your paycheck until the debt is satisfied. In some cases, you may be able to file a motion with the court to reduce the amount being garnished based on your financial situation.
Keep Communication Open
Throughout the process, keep the lines of communication open with the credit card company. Ignoring calls or letters will only escalate the situation. If you receive a settlement offer or request for mediation, consider responding promptly.
This can lead to a quicker resolution, possibly saving you time and money. Staying in touch with the creditor may also help prevent further legal actions like wage garnishment or asset seizure.
Debt Defenders: 15+ Years of Success Defending Debt Lawsuits in Texas
Being sued by a credit card company is a serious matter, but it is not the end of the road. At Debt Defenders, we specialize in defending clients against debt lawsuits in Texas. Our experienced team, led by attorney Daniel Ciment, has over 15 years of success in debt resolution, bankruptcy protection, and consumer rights defense.
We use a proven 3-step process to help you resolve your debts, protect your rights, and rebuild your credit. Our team will thoroughly review your case, explore legal defense strategies, and work tirelessly to ensure your best outcome. We’ll help you navigate your debt lawsuit and fight to avoid judgment. Contact us today, and let us guide you through this challenging time.