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What Happens If I Am Sued By a Credit Card Company?

There are many reasons people may charge large amounts on a credit card. In certain situations, credit cards can serve as a bridge to keep up on living expenses during times of financial strain. But if an individual is in serious credit card debt and behind on payments, some creditors could decide to bring a lawsuit against this person, despite the circumstances.

By initiating such a lawsuit, the creditor may get a court-ordered judgment to force this debtor to pay the owed amount through possible wage garnishment, property seizure or other aggressive means.

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If you are faced with a lawsuit from a credit card company, you can get specific information from a lawyer near you today. State laws vary and a local attorney may be able to guide you on a course that helps your situation. Just fill out the form below to connect with a sponsoring lawyer now.

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Fewer Restrictions on Credit Card Companies

Recently, state legislatures have made it much easier for credit card companies to bring cases against borrowers. The rules are more severe now for people who miss a court date and law enforcement in various states can invade an individual's home to make an arrest on site.

Depending on the state, bank officials often have more power in these types of situations than the officials who are elected to represent the public's interest.

In spite of these tactics, however, very few lawsuits for unsecured debts are paid in full by the borrowers. As long as the individual shows up for the hearing, the odds can be more in this person's favor.

The Summons

When a credit card company sends out a complaint, the response can be very similar to the summons in a foreclosure lawsuit. Debtors are given the option to file a Motion of Extension, which can provide an additional thirty days for preparation. During this time, the borrower may research the issues involved and figure out how to present his or her case.

In many situations, filing a Motion to Dismiss and responding to the credit card company’s complaint may force the bank to agree to a payment plan.

Bankruptcy and Debt Lawsuits

One way to stop a lawsuit over credit card debt is through bankruptcy. Bankruptcy includes a protection called the automatic stay that stops pending lawsuits, garnishments, and other debt-collection efforts by credit card companies.

At the end of a successful bankruptcy filing, credit card debt and other qualifying debts will be discharged by the court, legally ending any obligation to repay them.

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Find out if bankruptcy is the right solution for you, and how your state's laws may affect your case. When you fill out the form below, you can connect with a bankruptcy lawyer near you for a free case evaluation.

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