In a Lawsuit Over Credit Card Debt? Learn What to Do and What Not to Do!
In a lawsuit over credit card debt, Learn what NOT to do and how to respond to a summons properly. Why settling credit card debt by dealing with debt collectors before the lawsuit is best!
A lawsuit over debt is the last thing you want to deal with. It's not fun to find out that you have been served and it can definitely be a scary situation when you end up settling credit card debt in this way.
The problem is that many people find out there is a lawsuit and they try calling up the collection agencies and dealing with debt collectors, which is definitely not the right option.
To avoid making costly mistakes that can hurt your case, it's important that you learn what to do and what not to do when this occurs. Here is a look at the do's and don'ts to keep in mind when you end up with a lawsuit over credit card debt.
If A Lender Files A Lawsuit Over Credit Card Debt Against You.
DON'T Communicate with the Plaintiff
First, when you find out there is a lawsuit over credit debt, make sure that you don't communicate with the plaintiff. You may think that you should call and start dealing with debt collectors, but the time for this has now past.
The collection agency is considered to be the plaintiff in the case, so any communication should be written. It's time to take responsibility, move on, and avoid further damage and communicating with the plaintiff is not going to accomplish this for you.
DON'T Feel Intimidated
Don't feel intimidated by the fact you are stuck in a lawsuit. While you probably are upset and you feel terrible that you even have the debt, you cannot allow the debt collectors to intimidate you. Realize that there are things you can do to deal with the situation when settling credit card debt and go on.
DO Look at Your Credit Reports
Do make sure that you look at your credit reports when you end up in a lawsuit over credit card debt. In many cases, companies bring up old debts that are beyond the statute of limitations.
If you can find by looking at the credit reports the last date you paid on the account, you may find that the statute of limitations is past. You can get free credit reports from each agency once a year. Make use of them to ensure you don't get hit paying on debt they legally cannot collect on anymore.
DO Make Them Prove The Case
You need to make sure that they have to prove the case against you. There could be a variety of problems with their case, and the lawsuit may even have to be dropped. Make them go through the process of proving their case. Don't just offer to pay. In many cases they can't prove their case and you won't have to pay off the debt.
DO Send a Cease and Desist Letter
Since you are not supposed to communicate with the plaintiff when there is a lawsuit over credit card debt, make sure that you send a Cease and Desist Letter to let them know that they can only communicate with you in a written form.
They also should not be contacting employers, relatives, neighbors, or friends to try to collect on the debt. If they do not honor this, then you can sue them under the Fair Debt Collection Practices Act for every violation.
Do take action when you find out there is a lawsuit over credit card debt brought against you. This way you can go about settling credit card debt. If you don't do anything, then your bank accounts could be frozen or assets could be taken. Fight back and you have a good chance of effectively dealing with the problem.
The most important thing you can do to take control of your debts and get your future back on track is to do something. Take action. Starting Today, you will have the knowledge and power in your hands to easily change your life financially!
NOW! Just imagine what you will feel like, when you wake up one morning and absolutely know that all of your debts have been eliminated.
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