Debt Lawsuit

Facing a Debt Lawsuit?

Get the Help You Need!

Many people are not aware of the repercussions of past-due credit-card debt.  Since it is 'unsecured', some assume the legal consequences of being unable to make payments would be minimal – not so!  When lawsuits are initiated by a credit-card company, one's life can be turned inside, out.  Even if one credit-card payment is missed, your credit-card company goes into offense-mode, readying itself to do battle with you.  If one or more credit-card companies is in the process of suing you, you must acquire professional debt-defense as quickly, as possible.

Do any of these questions apply to you? 1)  Are you being sued because of an old debt?  2)  Has the alleged 'balance due' sky-rocketed out of control due to fees and an inflated interest rate?  3)  Have you had verbal or written contact with the company that is suing?  4)  Has a Deputy for the Court, or a private service agent, served you with papers or documents?

My job is to protect you, the borrower.  I am very aware of how circumstances in life can cause finances to become unmanageable – divorce, death of a spouse, huge medical bills, a job loss or any other life-altering experience can result in overwhelming debt – and it can happen to anyone!

I Have the Expertise You Need  

There are a myriad of collection measures creditors have at their disposal to retrieve outstanding debt.  There are, however, lawful restrictions that can be placed on their arsenal of tactics – restrictions that can benefit your case.  You don't want to face the possibility of a vehicle repossession, garnished wages, or a frozen bank account; and I will see to it that every legal avenue is utilized to protect your assets.

The Credit Card Lawsuit Process

When a violation of the original credit card contract takes place, the borrower should brace for the following:

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

***  A debt buyer might buy the delinquent credit-card debt from the original credit-card company.  The debt collector, then, legally owns the debt and inherits the same rights as the original creditor. That being said the assignment of the debt is frequently the weakest part of the Creditors evidence.   

***  The debt may reach the office of a debt-collection attorney.

***  The debt-collection attorney's office can sue you in state court; and you may be held liable for the full amount, as described in the lawsuit.

Are you, or a family member, being sued?  If so, it is crucial a response is offered to the court within a certain amount of time or the court may award the plaintiff – the debt collector – a default judgment.  The plaintiff would win the case without having to produce any evidence.  In Texas, you may have as little as 14 days, from the date of service, to respond before you risk a default judgment.

Debt Defense – The Creditor Doesn't Always Win

There are certain circumstances that can help your case:

1.  Statute of Limitations

With statue of limitations, the debt is too old to be subjected to a lawsuit; and the creditor is, forever, barred from the right to sue you.  Any debt collector who threatens to sue over a debt that is beyond the statute of limitations would be violating the law. This is an affirmative defense. You must plead it and prove it. Too many times potential clients have told me that they ignored the lawsuit because they “ knew it was BS.” The court will not do your job for you. Unless you show up to defend yourself the court will take the other sides pleadings at face value and grant judgment.

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.

What You Can Expect

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

1.  A Dismissal of the Case

A court's dismissal of the case does not, necessarily, mean you can't be sued again since the credit card company can re-file the lawsuit.  Sometimes, when challenged by competent counsel, the creditors may do kind of a strategic withdrawal, and non-suit their case against you. This dismissal is without prejudice as it is not a ruling on the merits of the case. They could potentially refile or sell it to a debt buyer. Legally the debt could remain on your credit report.

2.  A Ruling in Your Favor

If the court rules in your favor it means the credit card company has lost and would be unable to collect anything from you.  Here, you would have the option to file damages against the credit card company. In the event that this happens I hope that you would follow up with me to try to get this debt removed from your credit report.

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 rules in favor of the credit card company, a judgment against you would stipulate the dollar amount you would be obligated to pay.  Property liens, bank-account levies, and property seizure are a few examples of the types of collection procedures you could face.

Law Suits and Secured Debt

Lenders of secured debt incur less risk than debts associated with credit cards since secured debt involves collateral as security against non-payment.  A vehicle, home, an RV, or business property could be used as collateral as a promise to repay the debt.

Lenders can, also, recover money from the borrower to pay the lender's costs associated with property sales and legal fees.

There Is a Silver Lining

If you are crippled with personal debt and fear a debt lawsuit, there is hope!  My area of expertise includes lawsuits related to secured and unsecured debt; and I may be able to provide you with options to avoid bankruptcy.  I will offer the legal support and professional guidance you need to help you regain financial normalcy.  Creditors have seasoned lawyers on their side to fight for their rights; and so should you – let's do this together.

Give me a call for a complimentary case assessment regarding any of these areas:

***  Defense from debt-buyer suits

***  Defense from original-creditor suits

***  Defense from loan-deficiency suits


Contact me today!


James Foley

~Credit Card Lawsuit Defense & Bankruptcy Attorney~



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