What do you do when a credit card company sues you?
Steps to Consider If You’re Sued for Credit Card Debt
- Verify the Debt Is Accurate. You shouldn’t assume that a debt is accurate just because the company that’s suing you lists it in a court complaint.
- Talk to an Attorney. It’s always wise to seek legal representation when someone sues you.
- Determine How You’ll Respond.
How do I respond to being sued for credit card debt?
Here’s how to respond to a court summons for credit card debt:
- Don’t ignore it. If you do this, the court will simply rule in the issuer or debt collector’s favor.
- Try to work things out.
- Answer the summons.
- Consult an attorney.
- Go to court.
- Respond to the ruling.
What happens when you get a court summons for debt?
The debt is basically considered a loss by the original lender or creditor. When you are served summons for a debt, someone will usually come to your house or work, ask you for your name, and present you with a civil summons. Once a debt is past the statute of limitations, collects cannot sue you to collect a debt.
How do I answer a court summons debt collection?
You should respond in one of three ways:
- Admit. Admit the paragraph if you agree with everything in the paragraph.
- Deny. Deny the paragraph if you want to make the debt collector prove that it is true.
- Defendant denies the allegation for lack of knowledge sufficient to know the truth or falsity thereof.
What do you do if someone sues you and you have no money?
Always go to court If you are collection proof tell the creditor. Even if you do not have the money to pay the debt, always go to court when you are told to go. A creditor or debt collector can win a lawsuit against you even if you are penniless.
When does a credit card company sue you?
Most of the time (but not all), you have at least 6 months of nonpayment before the risk of being sued begins. The risk of being sued increases incrementally from there. Your original credit card bank may target your account for placement with a collection attorney based on several factors.
Can a credit card company win a lawsuit by default?
No, it’s because debtors usually do nothing when faced with a lawsuit. It is a rare debtor that will file an answer to a complaint to dispute even a valid debt. This allows the credit card company to win the lawsuit by default. Why is this important? As mentioned above, the judgment is the court’s determination that the debt is due.
What happens if I file a complaint against a credit card company?
While your bankruptcy is open, you must request your attorney to file a Complaint to Avoid Lien, such as this example in California; there is typically an extra charge for such an action. See also: What is the Difference Between Surrendering a Home and Foreclosure? Should I opt for debt settlement instead?
Who are the attorneys that collect credit card debt?
The attorney firms used to collect debts are often major players in the debt collection industry, but there are new additions to the list of attorneys collecting debt every year. Settling an old credit card bill when you are sued by an attorney hired by a debt buyer.