Credit Card Debt: What to do if You get Served with a Lawsuit
There is always a chance that if you have not paid your credit card debt that you may be sued by your credit card company, or a debt buyer, in the hopes that the judge will grant a judgment against you. This could leave your property and bank account at risk of being seized in order to pay the debt, on top of having to pay all court costs and attorney's fees.
Taking the following actions once you have received a court summons can help ensure your rights are protected and you have the best chance of a favorable result in court.
Retaining an attorney. A legally sufficient response must be filed to the lawsuit within the time frame referenced in the summons or complaint you are served with. Time is of the essence so see an attorney as soon as possible once you are served.
Know your rights. The creditor is required to prove you owe them money. Your creditor may not have sufficient financial records to establish this. The statute of limitations for collecting on a debt may have expired or the creditor may have failed to acknowledge payments you have already made. The creditor may have violated the Fair Debt Collections Practices Act or other state or federal consumer protection laws.
Do not neglect your summons. After you have been served, you will have a very limited time (typically 20 or 30 days) to file your response. You absolutely should not fail to do so since the creditor will automatically win a default judgment against you in this case.
Comply with court proceedings. You may have to provide the court or the opposing party with relevant information and you may also have to provide written or oral statements as part of the discovery process.
Negotiating a Settlement. Even if you lose the suit, we can still work with your credit card company to make a suitable arrangement on how to repay your debt.
Speak with the Tyler and Mineola consumer attorney at Campbell Law Firm if you are faced with legal action for an unpaid credit card and we can provide the advice and stalwart defense you need!