Battling Debt Law Suits

Debt Law-Suits – Don't Battle It Alone!

Credit-card debt can add up very quickly; and the consequences of missed payments can be stunning.  It is a type of debt that is 'unsecured'; yet creditors will fight tooth-and-nail to retrieve any money they are due if monthly payments have come to a halt.  If, even, one credit-card payment is missed, that is enough to raise a red flag with a credit-card company; and if payments are missed consistently, the borrower has entered a creditors' battle zone that requires professional intervention.

As a credit-card lawsuit debt attorney, I will fully utilize every legal avenue you are entitled to, in order to protect your assets.  It's all about debt-defense; and I will leave no stone unturned to ensure creditors do not take advantage of you or abuse their power.

These questions might sound all too-familiar:  1)  Has a lawsuit been filed against you by a debt collector?  2)  Has the alleged 'balance due' become severely inflated due to fees and an outlandish interest rate?  3)  Have you had contact with the company that is suing?  4)  Have you been served with a summons?  Circumstances in life can cause finances to become unmanageable; and if this is true of you, know that you are not alone.  Divorce, death of a spouse, medical bills, a job loss or any other life-changing experience can reek havoc with finances – and it can happen to anyone!

Seek the Expertise You Need

Just because a creditor is suing you does not, necessarily, mean you will need to pay back the debt or file for bankruptcy.  Yes, there are a number of measures creditors can utilize in an attempt to retrieve outstanding debt; but fortunately, for you, creditors must adhere to certain restrictions which can, greatly, benefit your case.  Vehicle repossession, or a frozen bank account are scarey possibilities which is why you need the help of a seasoned attorney – I can help you.      

The Debt Lawsuit Process

The process of suing a borrower for delinquent debt can feel very intimidating:

***  The credit-card company, or debt collector, may choose to sue you.

***  A debt buyer might buy the outstanding credit-card debt from the original credit-card company.  At this point, the debt buyer owns the debt and possesses, virtually, the same legal rights as the original creditor. That being said, assignment of the debt is frequently the weakest link in the creditors chain.  

***  The debt may be placed into the hands of a debt-collection attorney.

***  The debt-collection attorney's office can sue you in state court; and you could be legally responsible for the full amount owed.

It is critical you respond to the court within a certain amount of time or the plaintiff could be awarded a default judgment.  If you fail to respond, the plaintiff wins the case without having to produce any evidence, whatsoever.  In Texas, you may have as little as 14 days from the date of service to avoid a default judgment.

Debt Defense – Know Your Rights 

When presented with a debt-related lawsuit, it is important to understand the following:

1.  Statute of Limitations

With statue of limitations, the debt is too old to warrant a lawsuit; and the creditor cannot pursue any further legal action against you.  Every state has its own statute of limitations guidelines.

2.  Inability to prove ownership of the account

Particularly in debt buyer cases like Midland Funding or Portfolio Recovery, the creditors often sell these accounts in such large bundles that they cannot demonstrate that your particular account was in fact part of the deal.

3. Inability to authenticate documents

Again, more common in a debt buyer scenario, companies like Midland Funding and Portfiolio Recovery have difficulty authenticating the documents of the original creditor.

Outcomes of a Lawsuit

Three possible outcomes can result from a credit-card debt lawsuit:

1.  A Dismissal of the Case

Even though a court might dismiss your case, it should not be interpreted that you cannot be sued, again. at a later date.  The creditor can re-file the lawsuit if it is discovered that any possible errors resulted in the dismissal.

2.  A Ruling in Your Favor

A 'ruling in your favor' by the court is music to a defendant's ears!  It means the credit card company lost its case and would have no legal right to collect anything from you.  At this point, you would have the right to file for monetary damages against the credit card company.

3. An agreed settlement

Sometimes the parties can come to an agreement and payment schedule to resolve the issue without the necessity of trial.

4.  A Ruling in Favor of the Credit Card Company

If a court were to rule in favor of the credit card company, you would be subjected to a judgment that would dictate the dollar amount you would be expected to pay.  Consequences such as wage garnishment, property liens, bank-account levies, and property seizure could be used as creditors' remedies for payment of the owed debt.

Law Suits and Secured Debt

Unlike credit-card debt, secured debt relies on collateral which acts as security against non-payment.  Vehicles, homes, business properties and equipment can be used as collateral and forfeited in the event of a default.

Aside from repossession, foreclosures and/or sales of property to satisfy unpaid debt, lenders can, also, recover money from the borrower to pay the lender's costs associated with property sales and legal fees.

Don't Panic – You have an Ally

If personal debt and the fear of a lawsuit are robbing you of a normal life, there is hope!  As an experienced debt attorney, I will navigate you through the legal system and increase your chances of successfully overcoming any legal obstacles you might face.  Creditors have seasoned lawyers on their side to fight for their rights; and so should you.  I will be with you, every step of the way.

Call me, today, for a complimentary case assessment regarding:

***  Defense from debt-buyer suits

***  Defense from original-creditor suits

***  Defense from loan-deficiency suits

I look forward to hearing from you!


James Foley

~Credit Card Lawsuit Defense & Bankruptcy Attorney~


~Your peace of mind is only a phone call away~