What to do if you are being sued for Credit Card Debt. Credit Card Debt is more common than you think, and so many people are walking around with credit card debt that they have not yet been able to pay back.
For these reasons, people get sued occasionally by their credit card issuers for owing debt on their credit card accounts. If you are in this situation and you get sued, what should you do? Today we are going to consider what to do when you get sued for credit card debt.
What to do if you are being sued for Credit Card Debt
Everything in this article will show you how to respond if you are in credit card debt and you get sued for it. We are also going to take a look at what debt collection is in this article and every other thing you need to know. so that you can handle your debt collection issues very well in case you get sued by your credit card company.
What is Debt Collection?
Debt collection is easy It is simply when someone is trying to collect the money that you owe them by demanding that you make payment for it. But when it comes to debt collection on credit cards or finances, a credit card company simply hires a debt collection agency. It is the work of the debt collection agency to collect the debt from the individual that owns the company.
On the other hand, a debt collection agency can simply decide to buy the debt from the credit card company so that they can collect it for themselves. The lenders, all the credit card issuers, are not directly responsible for collecting debts from the people they issue credit cards. Debt collection happens in four different ways, which are listed below:
- Creditors collect the dead from you on their own.
- Creditors hire a debt collection agency to collect it.
- The debt is sold to a collection agency, which collects it for itself.
- Collecting the items associated with the installment loan so that they can be sold and the money given to the creditor.
These are the four ways that debt collection can be done when it comes to finances.
Why Might a Credit Card Company Decide to Sue?
Like it or not, a credit card company does not just decide to sue a defaulter or a borrower after defaulting on loans or credit cards. A credit card company will go the extra mile in contacting the person to make sure he or she pays all the debt they owe. And just as we have mentioned above, the company can also decide to contact the help of a debt collection agency.
If the person still refuses to make payment for the debt or stops picking up calls from the lender or the debt collection agency, this is when they decide to sue. The next thing you will notice is that the debt collection agency or the lender will contact the attorney to file a lawsuit against you. Once a lawsuit has been filed, then you are in some serious trouble.
How Does a Debt Collection Lawsuit Work?
The process of a debt collection lawsuit varies from state to state, which means that it is not the same in every state. However, once the attorney has been called upon to file a lawsuit against you, you will receive a summons. This statement that you will receive will contain information about the lawsuits that have been filed against you.
Once you have received the summons and understand the information about the lawsuit filed against you, you can now take appropriate measures. However, you should not be afraid to go to see an attorney because an attorney cannot threaten you with jail time for an unpaid debt. Because it is illegal to threaten you with jail time simply because you owe money
What to do when you get sued for Credit Card Debt
It is at this point that we have come to the main focus of this article today. Once you have been sued for an unpaid credit card debt, there are certain steps that you can take to make sure you come out of it. So if you are asking the question, “What to do when you get sued for credit card debt?” then consider the below solutions:
- Firstly confirm if the debt is accurate.
This is the easiest step. All you need to do is to take a look at your history to know if the debt that you are being sued for is accurate. You should not just assume that the debt is accurate, so you have to confirm it by asking the company to verify the debt you owe. The reason for this is that so many people have been sued by creditors by mistake.
- The next thing you want to do is to contact your attorney to negotiate and help you with the lawsuit.
- Determine your response.
Instead of continuing on ignoring the report, you need to determine the next action that you want to take in order to fix the problem. There are various things you can consider here. You can consider going to court to judge the case, settling the debt, employing the help of a credit counselor, or simply filing for bankruptcy.
When someone sues you for a date you did not pay for, it is natural to be angry, stressed out, and unsure of what to do. However, what you should not do is ignore the lawsuit, so follow the solutions in this article to help you come out of it if you are in that position.
FAQs
How do I get rid of credit card debt without paying?
The only way to get rid of credit card debt without paying it is to simply file for bankruptcy. However, you should not just wake up and decide to file for bankruptcy. You need to consider other options and also the disadvantages of filing for bankruptcy. Because having a bankruptcy status on your credit report is a very bad thing.
