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Debt Management Law News

July 20, 2010

Credit Card Debt Settlement – Will They Sue Me If I Attempt To Settle My Debts?

One of the greatest fears persons have when they are considering credit card debt resolving is being sued by a creditor. The question is often asked, “What are the chances of them suing me while I’m attempting to work out a credit card debt settlement?” To understand the answer you should first realize the process of credit card debt collection litigation.

Ever heard this conversation before? Terrifying debtors with Credit card lawsuit, wage garnishments and arrests have been a staple in the debt collector’s arsenal for long period of time. If you are trying to work out a credit card debt settlement, you should learn the facts about being sued for unsecured credit. Note, I noticed unsecured debt; secured debt is a whole different subject.

Credit card lawsuit defense is indeed the way to go as opposed to bankruptcy but it does offer several probable challenges you won’t experience with bankruptcy. With debt settlement, creditors are not demand by law to cease in their attempts to gather. That being said, here are the ordinary steps a creditor needs to go through in preparation to sue a debtor.

Step #1 – Assets Investigation: An usual investigation may contain the next things: skip tracing, confirmation of employment income, liens, judgments and bankruptcies, professional licenses, buildings property, automobiles, brokerage accounts, water vessels and aircrafts. It will also contain personal information confirmation such as: date of birth, social security number, social security number fraud check, address history, divorce records, name of spouse and children and child support payments.

Step #2 – Hire an Attorney: As you know, employing a lawyer is not cheap no difference what the issue is. A creditor can expect to pay anywhere from $150.00 for hour for an attorney right out of law school and $225.00 and upward for an experienced attorney. We’ve only been via two steps and already you may see why credit card debt settlement is more appropriate option than a lawsuit.

Step #3 – File The Case In Court: When the lawyer accepts the case, they will be demanded to pay the upfront legal costs like the filing fees, court costs, etc. Such fees can range anywhere from depending on the jurisdiction of the lawsuit.

In any of these scenarios, debt collection company will be faced with a mounting legal bill they may exceed what they may or may not have recovered. Frankly speaking, if the income is not there – or there looks like a gray area on their ability to gather, it would be to their advantage to pay back a credit card debt settlement.

pikibook.com

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242


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