Important Facts to Remember When Faced with Credit Card Lawsuit

Generally, banks will charge off an account after the debtor did not make a payment for 180 days. If your credit card debt has been left unpaid for 180 days, you need to check your report to see the Charge Off.

All charge off accounts will be turned over to a debt portfolio where it may be sold to a third party collection agency, known as junk debt buyers. If your account has been sold to a junk debt buyer and you have been served a summons, do not panic since most junk debt buyers do not have access to original documents that tie a person to the debt in question, directly.

Some debtors usually ignore the summons and this is where the lengthy, not to mention, costly, legal battle begins. However, there is a way to get around this problem. If you are facing credit card lawsuit for unpaid debts, it’s important to respond to the complaints right away. You may check your local court rules to see the given timeframe to file an Answer to the complaint.

Junk debt buyers are ruthless when it comes to collecting debts. Know that they paid pennies on the dollar for each account so they are likely to rake thousands of dollars in return. From the summons and accompanying documents, you will see the amount of money you owe, plus interest and penalty charges. If you ignore the summons, you will not only pay for all these charges, you will also pay for the junk debt buyer’s legal fees! Unfortunately, because most junk debt buyers are connected with most collection attorney across the country, they have the ability to track you wherever you live.

But consider yourself lucky if a junk debt buyer is filing a credit card lawsuit against you rather than your original creditor because the latter have all incriminating evidences that will pin you to the debt. Junk debt buyers do not have this luxury, when a creditor closed the book on a certain account, even the junk debt buyer who purchased it cannot access the documents.

This makes it very difficult for junk debt buyers to prove that the debt in question is yours so what they hope for is a default judgment. If you ignore the summons, the court will award a default judgment to the junk debt buyer and on top of creditors having legal access to your bank account or garnishing your wages, you pay for everything including their legal fees.

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