How to Counter a Lawsuit for Credit Card Debt
Receiving a notice that you are being sued by one of your creditors causes most people a great deal of anxiety. Luckily, being sued by a creditor can be defended against even without contracting with a lawyer. The most important step to take is to attend all court dates when requested. Missing a court date results in a default judgment being filed against you, which can lead to the creditor garnishing your wages or seizing your assets.
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Instructions
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Gather all documentation related to the debt you are being sued for and the lawsuit itself. Bring copies neatly arranged and organized with you when you get to court. If you have copies of any agreements to settle the debt, take particular care to bring them with you.
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File an answer to your court summons before the expiration date. In most states, you will have 20 days after receiving the summons to file your answer to the address provided on your summons. In some cases, you will need to physically visit the office stated on the summons to properly file your answer.
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Research the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act before you go to court. Document any instances in which you believe the creditor suing you has violated those laws. If you can prove violations in court, the debt will be annulled and you may be entitled to a damages reward for every instance.
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Consider contracting with a debt relief lawyer to assist in your defense. It's not necessary to have a lawyer with you to protect yourself from debt collection lawsuits or to counter any of their charges, but someone with legal expertise on your side will likely improve your chances of winning your case.
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Show up for your court date. Merely showing up for court in a debt collection case may result in your debt being dismissed. Debt collectors can often safely rely on most of their lawsuit targets failing to show up for court, which results in a default judgment against them. Collectors may decline to press charges on people willing to defend themselves or may not even show up to their own court dates.
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Request that the agent representing the debt collector produce documentary evidence proving that you owe the debt. If they didn't come prepared, the case will be thrown out and your debt will be discharged. If the lawyer represents a debt collection firm, ask that they provide proof that their company is licensed to collect debts in the state the lawsuit is being tried. If they can't prove that, the lawsuit will be thrown out and you may be entitled to damages.
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Open up a polite discussion with the lawyer representing the debt collector about settlement. Explain your financial situation and attempt to settle the debt in a lump sum or by creating a payment plan. Debt collection lawsuits only very rarely go all the way to trial. You will likely be able to settle the debt for significantly less than the amount you may owe on paper.
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File for bankruptcy if you are unable to settle the debt, have other unsustainable debts and insufficient income to make payments. A successful bankruptcy filling will discharge all debts--except for those legally exempt from bankruptcy such as student loans--and annul all judgments against you related to debt collection.
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