If you fall behind on your credit card payments, or you stop paying completely, your credit card company has the right to file a lawsuit against you. You need to be aware how and when this might happen, and what your options are!
If you have fallen behind on your payments, the credit card company or debt collector might sue to recover the money that you owe.
When you obtained your credit card, you signed an agreement. This agreement states each parties rights and responsibilities. Not paying your payments is a violation of this agreement.
Before you get sued, a credit card company will typically try to minimize their losses by selling your debt to a debt collector. The debt collector will become the legal owner of the debt. If you fail to settle this debt with the collector, it may be sold and resold again until it reaches a debt collection attorney's office.
Once this debt reached a debt collection attorney's office, you will be sued in state court. If you do not defend this in court, you will automatically be held legally liable.
When a credit card debt lawsuit occurs, the credit card company will first file a complaint. This will state how much you owe and the reason why the company thinks you owe it. You will then have to file an answer to the complaint.
There are some common defenses against these credit card lawsuits. These may include that the debt is too old for a lawsuit, a failure to state a claim, or invalid service of the complaint. To find out more information about each of these defenses, check out the source below.
According to NOLO, "Filing discovery requests forces the credit card company share relevant information to your case. If you believe the credit card company possesses documents or other information that supports your arguments, file a request with the court."
The court may either rule in your favor, dismiss the case, or rule in favor or the credit card company.
If you are in need of an expert bankruptcy lawyer, contact Palacios Law Group!