What To Do If You Are Sued For Credit Card Debt

credit card debt

Debt has its surprizing consequences and some of them will stun the average consumer. The major consequence when you default on credit card debt could be a lawsuit.

Yes, you read it right. You can get sued by the credit card issuer in extreme cases. Now, what should you do once sued by a credit card company?

You should immediately start working on how to win a credit card lawsuit. You can do the following in order to avoid the worst circumstances.

Don’t Ignore Calls

Don’t ignore calls from the credit card company as by doing so you are giving them an indirect message that you are intentionally avoiding payments.

Normally the credit card company starts chasing you on phone calls as you owe them money. So, don’t ignore their calls and give wrong signals. Immediately answer the call or call them back if you couldn’t pick up the call for the first time.

Discuss the matter with them and get a full understanding of the situation. This will help you to a better understanding and you will be able to come up with a debt elimination strategy.

Try To Settle With The Credit Card Company

As we advised earlier that you shouldn’t avoid the phone calls, here is another benefit of attending the phone calls from the credit card company. You can discuss the matter with them and settle the issue by talking.

Normally these credit card companies write off millions each year in terms of uncollectable debt. Their aim is to recovers as much much amount as possible. This is an opportunity for you to ask for a settlement.

You can ask for a partial payment of the debt and request the credit card company to cancel the lawsuit against you. You can also negotiate the heavy fines and interest rate put on you in the lawsuit.

Respond To Any Lawsuit

If you have failed to negotiate and settle the matter on phone calls then the credit card company may file a lawsuit against you.

Now it is strongly advised to respond to any lawsuit against you and do not ignore like phone calls. If you ignore the summon then the court may give a verdict in favor of the credit card company.

In order to quickly respond to a lawsuit, you can use automated web applications like SoloSuit. It is a cutting edge application built on Ruby on Rails technology which asks you some simple question and prepares your response to a lawsuit in a matter of minutes.

What Happens Next?

There can be three possible results in matter goes to the court:

1 – If the court gives a verdict in your favor and you win, then you should go offensive and ask for the damages to recover your legal cost.

2 – The second possible outcome is the dismissal of the suit from the court. However, the credit card company may file a suit again.

3 – If you lose the suit then the court will order to collect money and it might order to sell or confiscate your property.