You may need to know when to expect a credit card debt lawsuit and what steps are taken in and how to defend yourself.
If you fall behind in your payments for your credit card, the consequences may include being sued by the credit card company (or a debt collector) for recovery of the money owed. A lawsuit can go as far as having judgments for the money owed and lead to garnishment of wages or liens on property. There is a need to know when the creditor might sue, the steps involved in a credit card lawsuit, and self-defense.
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Can a Credit Card Company Sue You for a Credit Card Debt Lawsuit?
If you’re missing repayments towards credit cards, these may be collected by them or any debt collector that works with them, possibly dragging you into court for the amounts payable.
A Credit Card Firm Would Sue You if You Breach the Terms of the Contract
When you acquired the credit card, you signed the above electronically or in writing. The agreement states the rights and responsibilities of both the credit card company and you. Nonpayment or delay in payment of the credit card bill is usually a breach of the agreement, and hence, the credit card company may file suit not only against you but also against violation of the contract.
A Collection Agency Might Buy the Delinquent Credit Card Debt
Before they sue you, credit card companies try to minimize their loss by selling the debt to a debt collector or debt buyer. The collector or buyer is now a legal owner of the debt and most of its associated rights under the original creditor. If you don’t resolve the matter with the debt collector, it may sell and resell it again, but in the end, the debt buyer or collector is probably going to refer the debt to an attorney’s office to initiate a credit card debt lawsuit against you.
The Debt Collection Attorney’s Office Will Then Probably Sue You In State Court
Once the debt is with the debt collection law firm, the attorney will normally give you one last opportunity to settle the debt to avoid a lawsuit. If the settlement effort fails, then the attorney of the credit card company files the lawsuit.
Thus, you get liability for the total amount as stated in the lawsuit, as per the judgment in default, without filing any defense against such suit.
Process Steps in a Lawsuit
Procedures dictate the manner in which a credit card company presses charges against you under the laws of the state.
Filing Complaint
By using a “complaint,” the credit card company (plaintiff) pledges to file a lawsuit against you. A complaint tells how much you owe and why the credit card company thinks you owe it when served to you in association with the lawsuit.
You May Now Post an Answer to the Complaint
In that answer, you admit or deny each statement made in the complaint or, if you do not have sufficient information to admit or deny a statement, state that you do not have such information.
By denying the statements made in the complaint, you’re presenting a defense against such statements because you claim they are not true. Those denials typically stand on whether the statements were factually true or not. Supplements to this denial are definitely affirmative defenses in which your case merits. Have a section in which you plead defenses to the complaint in your answer.
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If you do not respond to the suit, you will likely be subject to a default judgment by the credit card company.
Potential Charges Against a Specific Credit Card Debt Lawsuit
All the probable results of your credit card lawsuit will necessitate further actions on your part. Knowing those possible outcomes helps prepare you for the worst.
The Court Rules in Your Favor
If the court rules in your favor, then that means the credit card company loses and may not collect against you for that debt. You may also want to consider asking the court to award damages against the credit card company to help pay your attorney fees.
Dismissal From Court
That dismissal might be that of the case, and with deletion, there are multiple reasons as to why it could happen. This court may be considered good for finding at the beginning stage. It usually leaves the door open as to the possibility for the credit card company to correct through re-filing if their error is what leads to dismissal. When facing a credit card debt lawsuit, you should always ask the court to call “dismissed” on the case, specifically “with prejudice,” to ensure you are protected from a future suit.
If the court rules in favor of the credit card company, you now have a judgment against you for a specific dollar amount.
Wage Garnishment/Bank Levies/Liens After a Judgment
The creditors will then ask the judge to allow them to collect on the judgment. Typical collection methods can include, but are not limited to, garnishment of wages, placing a lien on property, and seizure of property.
Bottom Line!
If you’ve been served a credit card debt lawsuit for nonpayment of a credit card debt, think about hiring a lawyer to represent you. The presence of a lawyer can improve your chances for a favorable outcome considerably. However, bear in mind that if hiring a lawyer is going to cost more than what the creditor is suing for, it probably doesn’t make sense to seek the assistance of a lawyer. Even so, make sure you respond to the suit.
Let yourself be surprised by credit card debt lawsuits. Instead, you must have the best and reliable lawyers from Bruner Wright PA. We offer sophisticated knowledge about debt collection and all the credit card lawsuit predicaments faced almost anywhere in Florida. Keeping your finances free from any kind of garnishment by wages or lien on property.
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FAQ on Credit Card Suits
Below are answers to frequently asked questions about credit card debt lawsuits.
Can Credit Card Companies Sue You?
Yes, if you have fallen behind on payments on a credit card account, the credit card company or an entity that bought the account may take you to court in order to collect on that debt. You may have some defenses to the lawsuit, for example, the statute of limitations.
What Are Your Chances of Winning a Credit Card Debt Lawsuit?
Your chances of winning in credit card lawsuits actually depend on several considerations, including whether you have a good defense against the action (like the statute of limitations has run, fraud, or failure to document the amount owed), and you have to reply to the lawsuit if you want to win; guarantee you don’t, and you will lose automatically. The less you owe on the debt if plaintiff can prove the case strongly, the lesser your chances of winning.
What Should I Do if I’m Being Sued by a Credit Card Company?
Respond to the lawsuit by the deadline indicated in the summons. This means you must file an answer that states any of your valid defenses. Seek the assistance of a lawyer. An attorney will prepare the answer and represent you in court. If you don’t respond to the suit, the opposing party will most likely win a default judgment against you.
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Read the full article on how a bankruptcy attorney in Jacksonville Beach resolves cases.