If you have been sued by a bank or credit card company, you can still resolve your debt. The first step is to submit your Case Response and begin the settlement negotiation process. It is recommended to hire a flat-rate debt relief law firm that has experience in defending thousands of lawsuits. You don't need to verify the debt if it is directly from the bank or credit card company.
You should have statements that you can review or log in to the online system. Another option is to make a lump sum payment on your debt. Some debt collectors may allow you to settle for less than the amount owed, as long as you can pay the entire settlement in one go. If you have enough money saved, the lump-sum plan might be your best option.
Negotiating and resolving a credit card lawsuit is possible, and in some cases, if you can't raise enough money for a lump sum, you may be able to establish affordable payment arrangements to avoid garnishment or freezing of your bank account. A debt management program can help lower the interest rate on your debt to 8% (sometimes better) and organize an affordable repayment schedule. If you don't respond to the lawsuit, you will automatically lose your case and debt collectors can withdraw the debt directly from your bank account or paycheck. It is important to remember that you cannot go to jail for credit card debt, and if a debt collector implies that you can, they are breaking the law.
If you cannot pay off credit card debt all at once, try making an installment plan for a few months. Once you are ready, contact the creditor and make an offer or hire a debt relief company to act on your behalf. The company may initially object, but the assistant supervisor is likely interested in recovering as much of the debt as possible. If you believe that the debt is not yours or if you don't know if it is yours, you have the right to request additional information.
Debt buyers, debt collectors, and collection law firms they hire use some similar criteria to identify who they will sue for payment. Debt often sells, so ask for documentation of a credit agreement you signed and proof that it comes from the original creditor. If you miss the opportunity to file a response to the service, the debt collector can request a failure to appear judgment. There are many debt collection scams and errors, so be aware of them. If your financial situation is serious and you owe a large amount of debt to many creditors, filing for bankruptcy may be best option.
Debt collectors aren't required to tell you if your debt has passed the statute of limitations, so research your state law or talk to a local lawyer. Finally, if you are considering trying to pay off debt with a credit card, make sure that liquidation is truly the best option for you. Your lawyer may be able to negotiate a payment plan that prevents your wages from being garnished or bank accounts from being frozen.
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