Statistics show that Americans in 2017 had an average credit card debt of over $15K. This number has been on the rise for years, and with it comes an increase in lawsuits from creditors. If a creditor is suing you, you'll need to take action to protect yourself. Luckily, you can do a few things to get out of the lawsuit faster.
Credit card lawsuits are becoming more common, but that doesn't mean you're helpless. You can do a few things to increase your chances of getting out of the lawsuit.
The first thing you need to do is show up to court. This may seem like an obvious one, but many people make the mistake of not showing up to their court dates. This will only worsen the situation, as the judge will likely rule in favor of the creditor.
If you can't afford an attorney, you may be able to get legal assistance from your state's attorney general's office or a local legal aid society. These organizations can help you understand your rights and represent you in court. A Credit Card Lawsuit Attorney is essential as they can provide all necessary paperwork and evidence to get you out of the lawsuit.
If you can prove that you don't owe the debt or that the creditor violated the law, you may be able to get the case dismissed. However, if you do owe the debt, you'll need to come up with a repayment plan. You may be able to negotiate a lower interest rate or monthly payment with your creditor.
The court will likely enter a judgment against you if you lose the lawsuit. This means the creditor can now take steps to collect the debt, such as wage garnishment or asset seizure. However, there are ways to avoid or delay these actions. You can file for bankruptcy or request a hardship stay, temporarily stopping the creditor from taking action.
Getting sued by a credit card company can be a stressful and overwhelming experience. However, taking the proper steps can increase your chances of getting out of the lawsuit. Be sure to show up to court, hire an attorney, and present evidence if you have any. And if you do lose the case, remember that there are still options available to you.
If you're worried about how a credit card lawsuit will affect your credit score, don't be. While the lawsuit will appear on your credit report, it won't significantly impact your score. However, if you lose the case and a judgment is entered against you, that will have a negative effect on your score.
There are several setbacks if you lose a credit card lawsuit.
Despite all of this, it's still important to remember that you have options. Learn what steps you can take to improve your credit score after a judgment is entered against you.
If you're able to settle with your creditor, you may be able to have the debt removed from your credit report. This is known as "paid in full" status and can help improve your credit score. To qualify, you must first negotiate a lump-sum payment with your creditor.
Once the payment is made, you'll need the creditor to agree to remove the debt from your credit report. This can be difficult, but it's worth trying if you can come up with the money.
Also known as a forbearance agreement, this is an agreement between you and your creditor to stop making payments temporarily. This can give you time to save money for a lump-sum payment. Just be aware that interest will continue to accrue during this time.
If you cannot make a lump-sum payment, you can try to negotiate a repayment plan with your creditor. This is known as a workout agreement. Under this arrangement, you'll agree to make regular payments over time until the debt is paid off.
Filing for bankruptcy should be a last resort. This will discharge your debt, but it will also stay on your credit report for seven to ten years. It's important to talk to an attorney before taking this step, as it can majorly impact your finances.
Lawsuits can be a stressful and overwhelming experience, but there are ways to increase your chances of getting out of one. Although it can be difficult, you must show up to court, hire an attorney, and present evidence if you have any. And if you do lose the case, remember that there are still options available to you.