Countering a Credit Card Lawsuit

Receiving a summons for long forgotten credit card debt causes a great deal of concern and anxiety for many delinquent debtors. The good news is, it’s possible to defend yourself against debt claims even without hiring an attorney. You need to focus on attending all court dates, when requested. Missing just a single date will result in your creditor winning the case by default. This could lead to wage garnishment, property lien or worse, seizing your assets. Below is a step by step instruction on how you can counter a credit card lawsuit.

Step 1: Gathering all documents relating to the debt you are being sued for as well as other information that could help give you leverage against the credit card lawsuit, including agreements, receipts, etc.

Step 2: Draft an answer to the court summons within the given time frame. Usually, defendants (that’s you) are only given 20 days to file an answer to the summons. There are cases wherein the defendant is instructed to visit the office stated on the summons to file the answer. If such is the case, make sure you are within the imposed filing period and bring any necessary documents with you.

Step 3: Start familiarizing yourself with local court laws, federal laws and state laws regarding credit card debt and credit card lawsuit. Certain laws are in place to protect consumer rights against abusive debt collectors, like the Fair Debt Collection Practices Act as well as the Fair Credit Reporting Act. If you feel that you have been victimized by abusive debt collector, bring a documentation of such instances, provide proof of your claim and you just might get the credit card lawsuit dismissed and collect a fine for damages reward.

Step 4: To assist you in building your defense against the credit card lawsuit, consider phoning a debt relief attorney to assist you during the litigation. Although it’s not necessary to hire an attorney having someone who has the legal expertise on your side will dramatically increase your chances of dismissing the credit card lawsuit.

Step 5: Appear in court on the right date. Showing up in court also increases the chances of getting the lawsuit dismissed. The fact is, most debt collectors rely on debtors not showing up in court to win the lawsuit. They are likely to stop pressing charges on debtors who are willing to defend themselves in court.

Step 6: Request that the plaintiff produce documented evidence proving that you owe them money. If they come unprepared, the case is likely to be dismissed and your debt written off the books. If the plaintiff represents a debt collection agency, ask evidence that their company is licensed to collect debts in the state that the credit card lawsuit is being tried.

Step 7: If the plaintiff chose initiate a debt settlement, be honest about your financial situation and propose a sound payment plan.

What To Do When Negotiating Settlement For Debts

Working out a settlement deal with a creditor or a debt collection might sound intimidating but it's actually easy when you know what to expect. Apart from getting a reasonable amount to repay the debt, you can also minimize the damage the debt will cause to your credit report. The good news is, a large majority of collection companies and creditors are willing to take less than the original amount of money owed.

Debtors can either shoot for an installment basis of repayment or pay a lump sum to get rid of the debt completely. Whichever way you chose to repay the debt, it is important to know what you can and hat you cannot do during the negotiation period. Below are some tips you should keep in mind when dealing with a debt collection company or creditor:

Set Your Emotions Aside
Don't let anger, guilt, shame or embarrassment break down communication between you and your creditor. It's best to address the issue calmly and be honest about your financial situation with your creditor. Getting upset or crying will only make communication difficult so set aside whatever emotional issues you have attached with the debt and ask for options instead. Choose the option which suits your current financial situation and settle the debt as soon as you can.

Stop Spending!
If you have mounting credit card debts to think about, the only logical thing to do is to stop using your credit cards and close most of your accounts to stop the accruing interest charges and minimize penalty fees. Once you closed these accounts, try to negotiate for a smaller amount of repayment and set it in an installment basis. Offer as low as 30% of the original debt amount and work from there.

Repair Your Credit
Unpaid debts cause negative impact on one's credit report which is why it is important to repair your credit as soon as you start paying off what you owe. Here's a great tip, ask your creditor or collection company to note that the debt is paid off satisfactorily rather than less than what was due. This might not entirely remove the bad marks but it will improve your credit history that you will be able to apply for bigger loans and mortgages easily in the future.

Keep all the tips above in mind to reach a reasonable settlement. However, if you are not sure about negotiating with your creditor or collection agency on your own, you can always consult an experienced debt collection lawyer to guide you through this ordeal.

Credit Card Debt Basics - On Debt Responsibility II

Receiving a collection call for a deceased family member’s unpaid balance does throw someone off the loop. The first thing that comes to mind when receiving a debt claim after recently losing a family member is if you are really responsible for it or not. Unfortunately, some debt collectors are not above using dirty tricks, including misrepresenting, to collect the debt. Don't be too quick t repay the debt. You need to know who is really responsible for paying a deceased family member's debt. We’ve compiled tips on how you can resolve the issue:

Know The Rules

Each state has its own rules and guidelines when it comes to resolving debt claims therefore, you need to conduct your own research about the issue and if possible, consult an attorney. Know that there are times when the responsibility of a deceased’s family member will be turned to you. One instance is if you are a co-signer or if you shared a joint account with the deceased. However, if your spouse has a separate account, you are not responsible for the debt, even if the debt collector is claiming otherwise.

Same goes for the children of the deceased. If they were not listed as joint owner of the account or co-signed the debt, they cannot be held responsible for said debt.

Call the Executor of The Estate

Usually, the executor of the estate should be the responsible party for a deceased’s debt dispute. Direct the debt collector to the executor of the estate and let them iron out the issue. Instruct the debt collector that you are not the right person to call and if they tried calling you again, they are crossing the line. A Cease and Desist letter is needed to stop them from further collection efforts.

Familiarize Yourself with the Fair Debt Collection Practices Act or FDCPA

It’s pathetic how some debt collection companies will try to cash out over grieving families. The good news is, there’s no reason why you should be a part of a growing statistics. You can do something about unlawful, abusive and totally inappropriate collection efforts by filing a complaint. If you are receiving incessant collection calls or debt claim notices despite sending a Cease and Desist letter via certified mail with return receipt requested, talk to your attorney and file a complaint.

This will not help you get back at abusive collection companies; you can also collect a fine if you proved that they did engage in unsavory collection practices. To make things easier, do keep a good record of correspondence or conversation between you and your creditor. You can present this as evidence once the proceedings start.

Credit Card Debt Basics: On Debt Responsibility

It’s not surprising that many debt collection companies will try to take advantage of grieving families to cash in on a deceased’s account. In fact, some do call up a grieving family member and would try to use the deceased’s name to make their kin pay for the outstanding balance. Under the FDCPA, debt collectors are not allowed to use deceitful collection efforts to satisfy a debt.

Unless, you are the debt’s co-signer or shared a joint account with the deceased, you do not have responsibility over the debt at all, even if you were the spouse. The same can be said for the deceased’s offspring, they are not responsible for the debt after death.

Settling a Deceased’s Debts

The executor of the estate is the one responsible for all dealings, including outstanding balances, of the deceased. This is why the debt collector should contact the executor of the estate to collect, not the immediate family of the deceased. Unfortunately, some debt collectors do prey on unsuspecting family members so make sure you don’t fall for this tactic and start familiarizing yourself with the Fair Debt Collection Practices Act or FDCPA. Below is an outline of steps you can take to avoid being taken advantage of debt collectors:

One: A Cease and Desist letter has to be sent via certified mail with return receipt requested for persistent collectors who kept calling you or sending you notices about the deceased’s outstanding debts.

Two: Create a good record of all conversations with the debt collector, especially if they are trying to make you feel guilty or use unsavory language just to collect the debt. You can consult an attorney and file a complaint for violating the Fair Debt Collection Practices Act.

Three: Make the executor if the estate request validation of the debt before you hand over the payment! Don’t just pay for anyone’s debt just because you were told by a debt collector about it. Remember, everyone can call someone up and claim that they owe him or her money. It is within your rights to obtain verified information about the debt before resolving the problem.

Always keep the above tips in mind if you are dealing with a debt collector from a dead relative’s due debts. Remember; don’t be too quick to hand over your hard earned cash just because someone claims that a debt has been left unpaid by a deceased family member. Check if the debt is valid, within statutes and make the executor of the estate demand a debt validation.