Lawsuit Over Credit Card Debt – It Doesn’t Have To Happen To You
A lawsuit over credit card debt has become the reality of many consumers. But you may ask why would a credit card company sue you over credit card debt? Credit card companies generously allow you to have excess to credit cards that you can use to make purchases up to the credit limits of the credit card account.
In fact most credit card companies do not file a lawsuit over credit card debt. They usually inform you of your outstanding payments and attempt to get you to make up any delinquent accounts. The law gives credit card companies 180 days from the time they declare an account delinquent to write-off the account and receive tax benefits.
They usually sell off bad accounts to a secondary market called debt collectors. These debt collectors / attorney firms that purchase the bad debts usually buy the bad credit card debt for pennies on the dollar. A lawsuit over credit card debt is usually produced through these debt collector firms who buy the rights of the debt.
If you receive a summons letter that a lawsuit over credit card debt has been filed you must answer the complaint within 30 days in most states. Check the state laws in your own state to be sure what the time limit is in your particular state. It is imperative that you answer this complaint immediately.
Not doing so will give the creditor an almost guaranteed default judgment against you. And once a creditor has a default judgment having it overturned is unlikely if you did not answer the complaint or even if you answered the complaint incorrectly. The courts are all about procedures and you not taking the time to learn the proper court procedures don’t protect you from a lawsuit over credit card debt.
Not learning only gives your opponent the advantage. Most debt collectors are willing to settle out of court if possible. They can afford to take a small percentage of the amount said to be owed on an account because they literally pay pennies on the dollar for the accounts. And they can still make a handsome profit on only receiving 30- 70% of the debt amount.
A lawsuit over credit card debt can seem mindboggling. But there is still light at the end of the tunnel and you will have many options and opportunities to decide how to react.
Some of the best advice at a moment of having a lawsuit over credit card debt filed against you is to do what’s necessary to avoid a judgment.
A judgment could set you up for bad credit, wage garnishments (depending on your state laws), liens on your property and payments being taken from your tax returns.
Take any lawsuit complaint with an open mind and don’t rush into any decisions without seeking legal advice first. Doing so can save you money and help you to avoid making mistakes that would surely cost you hundreds if not thousands of dollars.
If You Anticipate Or Have A Lawsuit Over Credit Card Debt, Click Here
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