If you believe you’ve been defrauded or discriminated against by a credit card company, you can contact an experienced consumer protection attorney today to find out if your claim is serious enough to warrant the filling of a lawsuit.
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May 16, 2018 · Ignoring the lawsuit will only play into the hands of your creditors — which is exactly what the credit card company is banking on. Free Consultation with Utah Bankruptcy Lawyers If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases.
Jul 13, 2020 · If you are being sued by a credit card company, you may consider filing for bankruptcy. Bartifay Law Offices has been assisting clients with matters of bankruptcy, foreclosure, and mortgage modifications for over 20 years.
There are many ways to consolidate debt. When you refinance credit card debt , you are becoming debt-free by avoiding or lessening your interest rate. By choosing to refinance credit card debt, you are moving your credit card balance from one card (or lender) to another. This will allow you to save money on interest and consolidate debt. While choosing to refinance credit card debt is a great option to consolidate debt, you must have a credit score over 680.
More often than not, the credit card company suing you will agree to a debt settlement. A debt settlement negotiation can help you avoid bankruptcy. With debt settlement, you will also most likely find a path to affordable payment arrangements with your creditor. To arrange a debt settlement, you will most likely need the help of an attorney. You do not want to go into a debt settlement with no understanding of the process or you might be taken advantage of. Your next question may involve how you can recover financially after your debt settlement.
When you file for bankruptcy after being sued by a credit card company, you can put a stop to collection proceedings (including lawsuits) by the power of the automatic stay. This method will eliminate any wage garnishments or foreclosure actions. Bankruptcy is a great way of managing debt, especially credit card balances. Chapter 7 bankruptcy will discharge your unsecured debts while Chapter 13 bankruptcy will restructure your debt. Out of the many ways of managing debt, bankruptcy is highly efficient.
When a creditor sues you to collect debt you haven't paid, you have three choices to deal with the lawsuit: allow the creditor to obtain a judgment against you (called a "default judgment") defend the lawsuit yourself, or. hire an attorney to represent you in the lawsuit. Which option is best for you will depend on a number of factors.
If you owe the amount that the creditor is seeking in its lawsuit, hiring a lawyer might be a waste of time and money. If you don't have a defense or counterclaim and the creditor can easily prove its case, then you'll lose. You'll then owe the judgment amount, have to pay your own attorney, and might have pay the creditor's attorneys' fees too. (In some types of cases, the losing party has to pay the other side's attorneys' fees).
If you win on your counterclaim, you might get a money judgment against the creditor. Your filing of the counterclaim might also induce the creditor to withdraw its lawsuit against you.
A defense is a reason why you aren't liable for the debt or a reason why the creditor shouldn't be allowed to collect the debt. Here are some common defenses to creditor suits: the statute of limitations (the time period in which the creditor must bring the lawsuit) has run.
Being judgment proof really means that you are collection proof. That is, if the creditor gets a judgment against you, can it collect it through wage garnishment, taking your bank account funds, or the like? If not, you are judgment proof. (Learn more about what being judgment proof means .)
Even if you don't end up hiring a lawyer, an experienced debt settlement attorney can help you evaluate the creditor's case and your personal circumstances to determine the best course for you.
But keep in mind that a lawsuit for a relatively small amount can grow if the creditor gets a judgment against you. The creditor will ask the court to include not only the debt balance, but the amount of the creditor's attorneys' fees, court costs, and interest.
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If you want to discharge a secured debt in a Chapter 7 bankruptcy, you'll need to surrender your collateral. Since there would no longer be any collateral, the debt can be treated as unsecured. Few people want to surrender everything to discharge a judgment lien. For this reason, it’s important that you file bankruptcy before the judgment is recorded. Recording a judgment is treated as collections action barred by the automatic stay. Therefore, a judgment recorded after filing bankruptcy doesn't create a judgment lien. Without a judgment lien, credit card debt is unsecured, meaning it will be discharged in a Chapter 7 bankruptcy.
Debt collectors must send this written notice within five days of the first date they have contacted you.
If you wait too long before making a payment, the credit card company may use a collection agency to attempt to collect the debt. The credit card company might give up on you and sell your debt to a debt-buying company. Collection agencies will continuously call you. They will send a lot of collection letters.
When you're sued, you will receive a summons and complaint. These documents let you know what you're being sued for, who is suing you, and how much time you have to respond. Your response is called an "answer.". How long you have to file your answer will depend on your state's laws.
Repeated phone calls intended to annoy, abuse, or harass you or any other person answering the phone.
If you fail to make your credit card payments, credit card companies will make your life more expensive by charging late fees and higher interest rates. These creditors will report negative information to the credit bureaus, which will then be entered into your credit history.
Fair Debt Collection Practices Act (FDCPA) —It’s a federal law that requires debt collectors to provide information about your debt. If the company violated provisions, you can countersue. Read the law at https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-textand then check some FAQs from the government at https://www.consumer.ftc.gov/articles/debt-collection-faqs.
The consumer advocacy group ConsumerAction offers this strong advice: “Never repay a debt you don’t recognize until you ask the debt collector to verify it.” Collectors must stop contact until they send the proof of the debt. If the debt collector continues to badger without verification, there is a good chance it’s a scam.
In 2019, the top debt collection problem was being pursued for a debt an individual didn’t owe. People frequently learn of collection efforts only after they are denied a loan or don’t get a job because of an outstanding debt on their credit report. A couple facts are interesting to note.
If you have five debts, that does mean you could get 35 calls – but you’d only have to have five conversations. The second part of the rule says that debt collectors are required to provide consumers a validation notice either immediately or within five days of contacting the person they believe owes the debt.
According to the Federal Reserve, U.S. credit card debt stood at $770 billion in early 2021. Understand, too, that credit card companies don’t sue capriciously. But if you fail to make the minimum monthly payment and carry a high balance, you’re going to get the dreaded phone call or court summons.
Understand: Bankruptcy has a considerable impact that can take years to recover from, but it can be a first step toward getting out from under overwhelming debt and move you toward rebuilding your credit. Talk to a lawyer immediately about whether filing for Chapter 7 or Chapter 13 bankruptcy is right for you.
The notice has to include details about how much is owed, that the notice is from a debt collector, and the consumer’s right to dispute the debt within 30 days. Debt collectors then must wait 14 days before posting the debt on a credit report. A badgering phone call without the written notice should raise questions of fraud; make sure the call is legitimate before providing any information to anyone over the phone.
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If a debt goes unpaid and you’ve made no plans to repay it, your credit card company may sue you in civil court for the balance, hoping a judge will order you to pay. If it happens to you, there are several ways you can proceed.
Most creditors would rather settle a case without the hassle of going to court.
Sometimes a creditor isn’t willing to withdraw the lawsuit, or you may believe you aren’t responsible for the debt.
Just because you’re sued by your credit card company doesn’t mean you should expect an automatic loss.
Once you’re served, you have a set amount of time – typically 20 to 30 days – to prepare and file a response.
Depending upon what state you live in and the particulars of your case, a number of proceedings can occur.
Yet, there are different ways to dispute unfair credit charges and successfully sue a credit card company. Attempt to resolve the problem without the courts. Suing a credit card company is costly for both parties . Before seeking legal action, contact the creditor to negotiate a deal. Be calm, but firm. Visit the Federal Trade Commission website.
There are laws to protect you from unscrupulous credit card companies. Go to the FTC's official website and learn your rights as a consumer. Find a qualified attorney. Although lawyers are skilled to handle a variety of law cases, it's best to choose an attorney who knows how to sue a credit card company.
Arrange for the credit card company to pay your attorney and court fees. If you win the case against the credit card company, make the creditor responsible for your out-of-pocket expenses.
Mandatory arbitration provisions are used so that companies do not have to face class action lawsuits, but the agreements also prevent consumers from suing a credit card company individually.
Creditcards.com studied 30 major credit card companies and discovered that only nine have those mandatory arbitration clauses in their contracts, and the other 21 have no mandatory arbitration clauses or provide consumers the chance to opt out within a set time frame.
Mandatory arbitration provisions are used so that companies do not have to face class action lawsuits, but the agreements also prevent consumers from suing a credit card company individually. Despite the fact that companies are legally permitted to use these clauses, some credit card companies do not use them.
If you believe you’ve been defrauded or discriminated against by a credit card company, you can contact an experienced consumer protection attorney today to find out if your claim is serious enough to warrant the filling of a lawsuit.
If you maintain a balance on your account, you may be paying an extremely high rate of interest. In addition to charging high interest rates, sometimes unexpectedly, some credit card companies implement other unfair consumer practices, which can leave consumers owing thousands of dollars that may take years, or even decades, to pay down.
Pick a card that doesn’t require arbitration. Chase, Bank of America, and Capital One were some of the major credit card companies that don’t require a mandatory arbitration clause be signed. Opt out of arbitration early in the contract.
However, if you strongly feel the injustice you suffered warrants a lawsuit, an attorney who handles these types of cases can evaluate the details of your claim and advise you of your chances of being successful with legal action.
You can certainly contact the law firm and try to negotiate a settlement. As stated in a previous answer you will have a better chance of getting the law firm to reduce the amount owed if you can give some type of lump sum rather than having to make payments. Also consider getting an attorney if you cannot negotiate a settlement and actually have to go before a judge...
It is never too late to negotiate. If you are head of household or have some other qualifying exemption from garnishment, they may have to wait a very long time to collect even with a judgment so this point may be used as leverage to obtain a smaller settlement. The more money you have to use toward the settlement up front, the greater the possible discount is likely that the debt collector will accept...
Yes you can contact the law firm and try to settle the matter. You can try to get a lump sum settlement which would be less than the original amount owed or you can do a monthly payment no interest.
Response s provided represent entirely un-researched, casual opinions and cannot be relied upon in any way or manner as legal advice. No communication here is intended to establish an attorney-client relationship.
It is never too late. I'm sure they will be happy to work something out. If you can pay an all cash settlement you could probably get a discount. If you want them to take payments, you probably won't be able to get a discount.