Credit Card Company Bringing Suit: Are There Any Good Options?

Being sued by a credit card company is a serious matter, but there are steps you can take to address the situation. Here’s a structured approach to dealing with a lawsuit from a credit card company:

1. Don’t Ignore the Lawsuit:

• Ignoring the lawsuit won’t make it go away and can result in a default judgment against you, which could lead to wage garnishment, bank account levies, or property liens.

2. Review the Lawsuit Documents Carefully:

• Ensure the debt is yours and the amount is correct. Sometimes, errors occur, or debts may be past the statute of limitations for collection.

3. Respond to the Lawsuit:

• You typically have a limited number of days to respond to the lawsuit (often 20 to 30 days, depending on your jurisdiction). Filing an answer with the court prevents the creditor from winning a default judgment by default.
• In your response, you can contest the lawsuit’s claims, assert defenses, or acknowledge the debt while explaining any extenuating circumstances.

4. Consider Hiring an Attorney:

• If the debt is significant or if you’re unsure how to proceed, it’s wise to consult with an attorney who specializes in debt collection defense. They can provide guidance, help you understand your rights, and represent you in court if necessary.

5. Explore Settlement Options:

• You may be able to negotiate a settlement with the credit card company or their attorney. A settlement allows you to resolve the debt for less than the full amount owed. Ensure any agreement is in writing and clearly states that the payment will resolve the debt in full.

6. Attend Court Hearings:

• If your case goes to court, it’s crucial to attend all hearings. Failure to appear can result in a default judgment against you.

7. Understand Wage Garnishment and Asset Seizure Laws:

• Familiarize yourself with your state’s laws regarding wage garnishment and asset seizure. Some types of income or assets may be exempt from collection.

8. Consider Bankruptcy:

• If you’re facing overwhelming debt beyond the lawsuit, bankruptcy might be an option to consider. Bankruptcy can halt collection actions, including lawsuits, and potentially discharge credit card debt. Consult with a bankruptcy attorney to understand the implications and whether it’s a suitable option for your situation.

9. Learn from the Experience:

• Regardless of the lawsuit’s outcome, use this as an opportunity to review and adjust your financial habits. Creating a budget, building an emergency fund, and understanding credit can help prevent future financial difficulties.

Being sued by a credit card company is a situation that requires prompt and careful attention. By understanding your rights, responding appropriately, and possibly seeking legal counsel, you can navigate the lawsuit and work toward a resolution. Remember, each situation is unique, so tailor your approach to your specific circumstances and legal obligations.

Credit Card Lawsuit