if you are being sued for your old credit card debts, there’s nothing to panic. Although it can be very frightening experience, but there is a solution to it.

sued by card

It is important to make rational decision. Often times, when people get served, they try to call the creditor or the attorney and try to work out some kind of payment arrangements to avoid the lawsuit. Unfortunately, not all the creditors are willing to work out a deal when it has gotten to that point.

That being said.. it opens the opportunity to negotiate with the creditor and try to settle the debt by at least 60% or more. Here’s the scoop. The creditor has already filed a lawsuit against you. There is no way now you can trust the creditor or the lawyer. They will try to collect all the points that you discussed with them to make their case stronger.

Most of the times, the creditors or the collection agencies will issue fake legal papers threatening legal actions against you. They will also find you as a good prospect for a “default judgment”.

A default judgment takes place when the debtor does not respond to the summons sent by their creditor. Usually a summons has 20 to 30 days to respond. Many a times, the debtors do not respond to the summons and thats how they get a default judgment against them. This is a golden opportunity for the creditor because they will add inflated fee plus interests, attorney’s fees, etc. And they will even garnish your wages or freeze your bank account until the judgment is satisfied in full.

It is important that you respond to the summons within the appropriate time frame with an “Answer”. You can feel a little secure and your assets are momentarily safe. Some cases move faster than others. But on an average the length of the time from the summons to the conclusion is almost seven months. Once you send them your Answer along with filing it at the court, the creditor is put on notice while the time you present your case.

Credit card

You need to present a strong case to drop the lawsuit altogether. If your debt is more recent, you can use other tricks and still if they do not drop the case, it will move on to the discovery period. They will send you a document with lots of questions about the debt and you have to respond to it.

If you are not clear with some of the questions, then you can also send questions to your creditors during this discovery period. The creditors or the collection agencies have to respond to your questions to make their case strong and valid.

Do your research and you will not only save your money but also your credit rating. It is very important that you file your answers on time and pay close attention to every step of the process.

This entry was posted on Monday, April 22nd, 2013 at 7:12 am and is filed under Credit Card, credit card debt. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.