Understanding Credit Card Debt Lawsuits

As many US citizens often do, you might find yourself in a situation in which you are not able to keep up with your credit card payments. Failing to pay your credit card debt grants your creditor the right to file a lawsuit against you. As such, you should understand how a credit card debt lawsuit might occur and happen and how you can avoid one in the first place.

When Your Credit Card Company Can Sue You

In order to obtain a credit card, you generally have to sign an agreement which dictates your responsibilities. One of these responsibilities is to keep up with your credit card payments. When you neglect to pay your credit card, you essentially violate your initial agreement and this leaves you susceptible to a lawsuit.

However, in many cases, your credit card company will simply sell your debt to a collection agency in order to reduce its burden and minimize its losses. In this case, the collection agency now owns your debt and you are under the same obligation to settle your debt with the agency. Failing to settle your debt at this point may result in your debt being resold over and over until it eventually reaches a debt collection law firm.

A debt collection law firm will generally give you one more chance to settle your debt before suing. If you are unable or unwilling to settle your debt, an attorney will file a lawsuit against you, which could result in you being liable to pay much more than you originally owed.

Getting Out of Debt

Finding a way to get out of debt can be very difficult, but it is the only way to ensure that you won’t find yourself being sued by your credit card company. There are many ways to get out of debt, but, if all else fails, debt settlement can be a great way to escape your debt. An experienced debt defense attorney can negotiate on your behalf to come to an agreement with your lender (or the collection agency) to pay a lump-sum portion of your debt, in order to absolve yourself of financial burdens. If you need assistance getting out of debt, or are being harassed by collections agencies, please call us today at 305-514-0500 for a free consultation.

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