what kind of lawyer for credit card debt

by Miss Bernadette Erdman Sr. Published 2 years ago Updated 1 year ago 3 min read

What happens when credit card company sues you?

What to do if credit card company sues you?

How to negotiate a debt settlement with a lawyer?

At McCarthy Law PLC, our credit card debt settlement lawyers negotiate with creditors to lower the amount of your debt and then pay it off with a monthly payment that fits your ability to pay. …

Should I file for bankruptcy for credit card debt?

Aug 18, 2010 ·

Can you legally settle credit card debt?

Credit card settlement is a type of debt settlement that will let you pay off credit cards for less than what you originally owed. This is usually done through a third-party agency, although you may also be able to negotiate hardship options or lower interest rates on your own.Nov 8, 2021

What is the average settlement for credit card debt?

According to the American Fair Credit Council, the average settlement amount is 48% of the balance owed. So yes, if you owed a dollar, you'd get out of debt for fifty cents.

How do I file a lawsuit against a credit card company?

Complain to Consumer Financial Protection Bureau. The CFPB began accepting complaints against credit card companies in 2012. You can file a complaint on-line, by phone or by mail. You should also file the same complaint with your state Attorney General.

Can I negotiate credit card debt after being sued?

You can resolve your debt after the suit is filed by sending a Debt Lawsuit Settlement Letter. After filing your Answer into the case, you should begin the process of negotiating a settlement. Most creditors/collectors want to reach a settlement, and they will often settle for less than the amount you actually owe.Feb 22, 2022

How much should I offer creditors to full settlement?

Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.

Is it better to settle or pay in full?

Generally speaking, having a debt listed as paid in full on your credit reports sends a more positive signal to lenders than having one or more debts listed as settled. Payment history accounts for 35% of your FICO credit score, so the fewer negative marks you have—such as late payments or settled debts—the better.Sep 3, 2021

What happens if you don't show up to court for credit card debt?

If you don't show up for the court proceeding, the judge automatically rules against you and will order you to pay the full amount. Credit cards are unsecured debt — meaning there's no collateral at stake, such as a home or car — so the lender has limited options for collection.

Can I pay debt before court date?

Yes, you can pay off debt before a court date – and you should absolutely do so if you can. If you have defaulted on a credit card, you should start working on debt settlement as soon as you know you can't make payments. And if you receive notification of a lawsuit, then it becomes particularly important.Dec 23, 2019

What federal agency oversees credit card companies?

The Consumer Financial Protection Bureau (CFPB), a federal government agency, collects consumer complaints about credit cards, mortgages, bank accounts, student loans, consumer loans, credit reporting, money transfers, and debt collection.

Can a lawyer negotiate credit card debt?

A debt settlement attorney can negotiate with your lenders if you have a large amount of unsecured debt to lower the amount you owe. Unsecured debt is debt that didn't require a collateral, such as credit cards, student loans, or medical bills.

What happens when someone sues you and you have no money?

You can sue someone even if they have no money. The lawsuit does not rely on whether you can pay but on whether you owe a certain debt amount to that plaintiff. Even with no money, the court can decide that the creditor has won the lawsuit, and the opposite party still owes that sum of money.Dec 9, 2021

Can you get a settlement figure on a credit card?

You can negotiate a settlement for credit card debt, but doing so could negatively impact your credit for 7 years. If your credit card debt has become unmanageable, you are wise to seek help and explore your options, such as requesting a lower interest rate.Sep 6, 2018

Can A Debt Lawyer Help My Court Case?

A debt lawyer is extremely valuable if your debt situation causes you to go to court. Debt collectors can take consumers to court to recover money...

What Can A Debt Lawyer Do For Me If I File For Bankruptcy?

A debt lawyer is almost mandatory when filing for bankruptcy.A debt lawyer who specializes in bankruptcy can explain the differences between Chapte...

How Much Does It Cost to Hire A Debt Lawyer?

When you are swamped with debt, hiring a lawyer can add to the pile of expenses you already have. The right lawyer, however, can steer you though t...

When You Should Hire A Lawyer

The first step to solving problems with debt collection is to see if you can deal with the situation yourself, or contact a nonprofit credit counse...

Is Hiring An Attorney Worth It?

Lawyers cost money, so it is wise to consider whether retaining one in a debt case is worth the cost. Face it, you already have financial problems,...

What to Expect from A Lawyer

Lawyers can be expensive, so if you decide to hire one, you should talk fees early on. Lawyers will either charge you an hourly rate or a contingen...

How to stop debt collectors from calling?

Here are some common reasons to seek legal advice: 1 Debt collectors are calling you at home or work all the time. If you’re getting a lot of calls and can’t stop them with a request that the debt collectors desist, it might be time to bring in an attorney who can discuss your rights and speak to the creditors contacting you. 2 You’ve reviewed your finances with the help of a nonprofit debt counselor and have concluded that you are unable to repay your loans. 3 A creditor is threatening you with a lawsuit or has filed suit. 4 Debt collectors are treating you in a way that you feel is abusive. 5 Your creditor has repossessed your car and might be threatening you with a collection suit.

What is debt lawyer?

A debt lawyer is someone with the knowledge, credentials and skill to help consumers struggling with debt sort through their financial troubles. Representing clients in cases against debt collectors is a form of consumer law, the branch dedicated to protecting consumers against unfair trade and credit practices.

Can a debt lawyer help me in court?

Can a Debt Lawyer Help My Court Case? A debt lawyer is extremely valuable if your debt situation causes you to go to court. Debt collectors can take consumers to court to recover money owed and win most of the cases because the consumer never appears in court or sends a legal representative.

Why is a debt lawyer important?

A debt lawyer is extremely valuable if your debt situation causes you to go to court. Debt collectors can take consumers to court to recover money owed and win most of the cases because the consumer never appears in court or sends a legal representative.

Is a debt lawyer required for bankruptcy?

A debt lawyer is almost mandatory when filing for bankruptcy .A debt lawyer who specializes in bankruptcy can explain the differences between Chapter 7 or Chapter 13 bankruptcy filings and should advise you what rights and obligations go with each form. With a bankruptcy, a debt attorney will help you prepare all the required paperwork you need in ...

Can a lawyer file a counterclaim against a creditor?

Perhaps you have grounds for a counterclaim against the creditor. If the creditor violated legally prescribed procedures for collecting debt – say the credito r illegally harassed you – a lawyer might be able to file a counterclaim against the creditor. There are also standard legal defenses that could work.

Why are debt lawyers so popular?

Debt lawyers have become more prominent because household debt in the U.S. has jumped 11% over the last decade to an average of $134,643 (including mortgages) and credit card and auto loan debt are going over the $1 trillion, mark.

When will debt collectors have to give notice of eviction moratorium?

All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium.

Can you leave originals with a debt collector?

Never leave your originals with anyone. It will be helpful for your attorney to review copies of letters you have received from the debt collector, as well as any copies of records you have kept of phone calls, letters you wrote to the debt collector, or other communications. Read full answer.

What is credit card debt?

Credit Card Collections & Other Unsecured Debts. One form of debt that is typically sought after by debt collectors is credit card debt. Credit cards are typically unsecured debts, meaning that there was no collateral such as a home or car put up for the use of the credit. If a consumer defaults on one of these debts, ...

What happens if a credit card defaults?

Credit cards are typically unsecured debts, meaning that there was no collateral such as a home or car put up for the use of the credit. If a consumer defaults on one of these debts, creditors tend to hire debt collection agencies and law firms to collect.

Does interest accrue on credit card debt?

Interest can continue to accrue: Credit card and unsecured debts typically have agreements with consumers that state that any unpaid balance will continue to accrue interest until such time as it is paid in full.

Can a consumer file a lawsuit against a debt collector?

Lawsuits are filed to collect these debts: However, the creditor may have the right to file a lawsuit against the consumer to force payment of the debt through a judgment.

What happens if the statute of limitations does not run on the creditor?

If the statute of limitations has not run on the creditor (meaning they still have time under the law to sue) then the creditor has a lawyer (who is also deemed a debt collector) file the lawsuit. The lawsuit must be served upon the debtor according to the service of process rules of the state in which the consumer resides.

2 attorney answers

You may want to speak with a consumer attorney that handles debt collection harassment and identity theft matters. You may be able to find one on AVVO or you may want to search the Member Directory for the National Association of Consumer Advocates, which is organized geographically by state. See link below. More

Gordon R. Leech

A civil litigator. Depending on the amount you are out hiring a lawyer may not be cost effective.

What happens if you don't settle a debt with a debt collector?

If you fail to settle the debt with the debt collector, it might be sold and resold again. Eventually, a collector will probably refer the debt to an attorney's office to initiate a lawsuit.

Can a credit card debt collector sue you?

The statute of limitations is an affirmative defense where you argue that the debt collector can't sue you because of the age of the debt. Each state defines how long a debt remains collectible and this typically ranges ...

How long can a debt collector sue you?

Each state defines how long a debt remains collectible and this typically ranges from three to ten years .

What to do if you are sued for nonpayment of credit card debt?

If you need help responding to a lawsuit for nonpayment of a credit card debt, consider hiring a lawyer. But keep this in mind: If it costs more to hire a lawyer than what the creditor seeks in the lawsuit, it might not make sense to seek attorney assistance. Talk to a Lawyer.

What happens if you stop paying your credit card?

If you fall behind on your credit card payments —or stop paying altogether—your credit card company has a right to file a lawsuit against you.

What happens if you are delinquent on credit card payments?

If you're delinquent on your credit card payments, the credit card company or a debt collector hired by the credit card company might sue you to recover the money you owe.

Can a credit card company sue you?

The Credit Card Company Could Sue You If You Break the Terms of the Contract. When you originally obtained the credit card, you signed an agreement either electronically or in writing. This agreement defines both your and the credit card company's rights and responsibilities.

Can you keep your retirement account in bankruptcy?

If bankruptcy might be inevitable, think twice before using retirement funds to pay bills. Most people can keep their retirement account in bankruptcy.

How to deal with a creditor who hasn't paid?

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.

What to do when a creditor sues you for debt?

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.

Can a creditor get a judgment against you?

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.

What happens if you don't have a defense?

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).

What is a defense in a lawsuit?

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.

What are the defenses to a creditor suit?

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. the creditor filed the case filed in the wrong court, or. the creditor can't produce the original paperwork to prove you owe the debt.