what type of lawyer to hire for credit card lawsuit

Full Answer

Can I pay my attorney with a credit card?

When you can’t avoid paying an attorney, you can at least earn substantial miles, points, or cash back by using one of the best credit cards to pay for legal services. There aren’t any cards that have law firms as a bonus category, but you can use a card that rewards you for everyday spending or use the big expense to unlock a huge welcome bonus.

What to do if credit card company sues you?

• Description of how the Plaintiff acquired your debt. ...
• Ask for the total amount that they say you owe.
• Ask for the name of the original credit card company.
• Request a copy of the original credit card agreement that you signed.
• Request proof that the debt was assigned, i.e. ...
• Ask for documents showing all credit card charges that they claim you made.

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How to write an answer to a credit card lawsuit?

Here are some other tips for properly filing your Answer to a debt collection lawsuit:

• Print a copy out your Answer
• Personally sign and date the Answer
• Make two copies of the Answer; one will be submitted to the Court while the other should be sent to the debt collector
• File your Answer with the Clerk of the Court.
• Be prepared to pay a filing fee with the Court.

How to beat a credit card lawsuit in court?

Part 2 Part 2 of 3: Building Your Defense

1. Go through your financial records. If you have been sued for failure to pay your bill, you should try to gather evidence that you have made payment.
2. Read your card member agreement. The agreement might also state that you are not in default until your payment is 60 days past due.
3. Request documents from the plaintiff. ...
4. Get evidence of identity theft. ...

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How do I take legal action against my 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.

What is a fair settlement for credit card debt?

Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you're dealing with a debt collector or the original creditor. In either case, your first lump-sum offer should be well below the 40% to 50% range to provide some room for negotiation.

Can you settle credit card debt after a lawsuit?

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.

How do you negotiate a debt settlement at a law firm?

Five Steps to Debt NegotiationStep 1: Stopping Creditor Phone Calls. ... Step 2: Validating the Debt. ... Step 3: Negotiating the Debt. ... Step 4: Settling the Debt. ... Step 5: If Sued, Utilize Defenses – Why You Want An Attorney.

What is the lowest a creditor will settle for?

Aim to Pay 50% or Less of Your Unsecured Debt If you decide to try to settle your unsecured debts, aim to pay 50% or less. It might take some time to get to this point, but most unsecured creditors will agree to take around 30% to 50% of the debt. So, start with a lower offer—about 15%—and negotiate from there.

What percentage should I offer to settle a debt?

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.

Can you go to jail for credit card debt?

The short answer to this question is No. The Bill of Rights (Art. III, Sec. 20 ) of the 1987 Charter expressly states that "No person shall be imprisoned for debt..." This is true for credit card debts as well as other personal debts.

Can credit card companies take your house?

Fortunately, your home is safe from any creditors who do not have a mortgage or lien on it. Credit card companies and other unsecured loan holders can't come and simply take your property or home after missing a few payments. A creditor will first start making collection attempts by mail, phone calls or other methods.

What happens when a credit card company files a Judgement against you?

A judgment gives the creditor the right to use additional collection methods to collect the debt owed to them. For example, if the credit card company proves to the court that you owe $5,000, a court may enter a judgment saying that you owe $5,000 (plus costs and interest).

What are the pros and cons of debt settlement?

In any case, it's important to weigh the pros and cons of debt settlement so you can make the right choice for your situation....Debt settlement pros and cons.ProsConsPay off debt soonerCould come with feesStop calls from collection agenciesCould hurt your credit2 more rows•Jan 26, 2022

Is it better to settle a debt or pay in full?

It is always better to pay off your debt in full if possible. While settling an account won't damage your credit as much as not paying at all, a status of "settled" on your credit report is still considered negative.

Can I settle my debt myself?

You may be able to get faster results with DIY debt settlement. While completing a plan through a company can take two and a half years or more, you may be able to settle your debts on your own within six months of going delinquent, according to debt settlement coach Michael Bovee.

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.

Do You Recognize The Debt?

The debt in question may not be yours. Credit card companies generally don’t want to take legal action unless you’ve made zero payments for about six months and ignored their calls. A lawsuit is a last resort.

Is This An Old Debt?

After making sure that the debt in question is yours, check to see if it's "time-barred” or too late to sue you. Credit card companies only have a certain amount of time to bring a case in civil court. Depending on state law, this can range between 2–6 years. You’ll want to check your local rules to see what statute of limitations applies.

Other Important Questions To Ask Yourself About The Debt

Did a debt collector harass you while trying to collect this debt? The Fair Debt Collection Practices Act (FDCPA) forbids lenders and creditors from engaging in fraudulent and deceptive behavior. They also can’t harass you by:

Have You Filed For Bankruptcy Since You Had This Credit Card?

Credit card debts are discharged at the end of Chapter 7 bankruptcy proceedings. In “no-asset” cases, the trustee cannot take any assets because they’re “exempted” under state law. In cases of non-exempt assets, some of your property can be sold to pay creditors. However, this scenario is rare.

Steps To Winning The Lawsuit

After you've considered the facts and know your defenses, find what type of court will be evaluating your answer or response to the complaint brought against you. In some states, for lower-level small claims courts, checking a box admitting or denying the claim may work for an answer.

What to do if a credit card company sues you?

There’s a sports adage that the best defense is a good offense. If a credit card company sues you, one strategy is to challenge its right to do so. It’s the plaintiffs’ responsibility to prove that you owe them money. Make them do it. Debt often gets sold, so ask for documentation of a credit agreement that you signed and proof that the paperwork is accurate and came from the original creditor. This can be done without a lawyer.

What happens if you don't show up for a credit card lawsuit?

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.

What is Incharge debt management?

InCharge has credit counselors who can help reduce your monthly payments and get you out of debt even faster. With a debt management program, counselors can work with the credit card company to reduce the interest rate on your debt to 8% (sometimes better) and arrange a payment schedule that is affordable.

What is the top debt collection problem?

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.

How many calls can you get from a debt collector?

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.

What happens if you default on credit card debt?

Debt has consequences, some of which will surprise the average American. For example, if you default on credit card debt the major consequence could be a lawsuit. Hold on.

Why are credit card companies not infallible?

The credit card companies did not become infallible because time has passed since those articles were published. Make sure the debt is yours, the identity is yours and the charges are yours.

Debt Collection Suits Are On the Rise

The number of debt collections suits going through each state’s court system has skyrocketed in recent years. In some cases, the original creditor, like a credit card company, files the lawsuit against the consumer. Other times a debt buyer—a business that purchases delinquent debt from original creditors—sues the debtor to collect it.

Options for Dealing With a Creditor Lawsuit

If a creditor or debt collector sues you for an unpaid debt, you could:

Do You Have Any Defenses or Counterclaims?

Ignoring the suit is almost always a bad tactic. If you fail to appear in the case, the court won’t examine the validity of the debt, the accuracy of the amount sought, or whether the correct person was sued. Creditors and debt collectors often automatically win cases that have inaccurate information or where defenses are available.

Compare the Cost of Hiring a Lawyer to the Debt

If you don’t have any defenses or counterclaims, and assuming the creditor has sufficient evidence to prove its case, you’ll lose. So, if you have to pay a lot in attorneys’ fees—more that you owe on the debt—it might not make sense to hire a lawyer to help you.

Are You Judgment Proof?

Generally, once a creditor gets a judgment against a debtor, that creditor may garnish wages, levy bank accounts, place a judgment lien on any real estate, or seize personal property (things other than real estate) to collect the debt. But if you’re judgment proof, the plaintiff won’t be able to collect anything from you even if it gets a judgment.

Getting Help With a Creditor Lawsuit

Even if you can’t afford to hire a lawyer to represent you in court, meeting with an experienced debt settlement lawyer for one consultation can help you evaluate the plaintiff's case and your circumstances to determine the best course of action.