Facing A Credit-Card Debt Law-Suit

Don't Fight It Alone!

Credit-cards can be a blessing or a curse depending on how manageable the payments may remain.  For many Americans, an occasional missed payment is not uncommon; but when monthly payments become seriously delinquent, then “Houston, we have a problem!”  Creditors waste no time with assuming one missed payment could be the forerunner of more missed payments.  Creditors will waste no time going into 'battle mode', ready to fight for what is theirs.

If you have fears of being taken to court due to your credit-card debt, I am here for you!  My expertise deals with debt-defense, which boils down to protecting your rights and your valuable assets.  I will guide you through the legal maze of complex twists and turns that only an experienced attorney can effectively handle.  I will make sure your creditors' shrewd attorneys do not abuse their power and take advantage of your situation.    

These questions might feel uncomfortable for you:  1)  Has a lawsuit been filed against you by a debt collector 2)  Have you, in any manner, communicated with the company that is suing you?  3)  Have you been served with a summons?

When it comes to being served papers regarding a pending lawsuit, it is not uncommon for the Plaintiff to hire private process servers, dressed in everyday attire, who may arrive at your home or business, unannounced.  The Plaintiff is not under any obligation to engage a uniformed deputy, to effect service. 

Life-experiences can wreak havoc on one's finances:  divorce, death of a spouse, medical bills, a job loss and other personal circumstances can adversely affect one's finances; and it can happen to anyone!

You Need My Expertise

Though a creditor's pending lawsuit may feel very frightening, you should know that it is possible you may not have to pay back the debt or pursue bankruptcy.  It is true that creditors have a slew of legal avenues at their disposal to help recover money owed to them, but there are restrictions, to which, they must adhere.  Those restrictions are in place to protect your rights.  Don't let the thought of asset repossession or frozen bank accounts keep you awake at night – I will be with you every step of the way!         

Debt Lawsuits Follow an Order of Events

There are strategic steps involved when creditors aggressively attempt to retrieve outstanding debt:

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

***  A wholesale debt buyer may buy the credit-card debt from the original credit-card company.  The collection agency, then, owns the debt and possesses the same legal rights as the original creditor.   

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

***  The debt-collection attorney's office can sue you in Justice of the Peace Court; The County Court at Law, or the District Court and you could be liable for the full amount owed.

If you choose not to respond, the plaintiff would be awarded a default judgment and would win the case without having to produce any evidence!  At the same time, you will have forfeited the opportunity to state your case.  In Texas, you may have as little as 14 days from the date of service to issue a response.   

Debt Defense – Legalities That Can Help Your Case

it is important that you have a bit of insight on how the law can help your case:

1.  Statute of Limitations

With statue of limitations, the debt is too old to become entangled in a lawsuit.  At this point, the creditor cannot continue any additional legal proceedings against you without breaking the law.

This is an affirmative defense; and you must be willing to plead it and prove it!  Very often, potential clients have told me they chose to ignore their lawsuit since they felt it was invalid – this is a very unwise move!  The court will expect you to show up and be ready to state your case.  If you choose not to, the plaintiff's pleadings will be taken for face-value; and a judgment will be issued against you.

2.  Inability to Prove Ownership of the Account

More often in debt-buyer cases involving Midland Funding or Portfolio Recovery, creditors will sell the accounts in huge bundles.  Because of the magnitude, creditors are often unable to demonstrate that your account was, indeed, part of the transaction.

3.  Inability to Authenticate Documents

Once again, commonly in debt-buyer situations, companies such as Midland Funding and Portfolio Recovery face challenges with authenticating the documents of the original creditor.

Outcomes – The Good, the Bad and the Ugly

Four possible outcomes can emerge from a debt lawsuit:

1.  A Dismissal of the Case

A 'Dismissal of the Case' isn't necessarily as benign as it sounds since the creditor has the right to re-file the lawsuit at a later date.  When creditors are challenged by competent counsel, however, they may choose a type of withdrawl in which they would non-suit their case against you.  This type of dismissal is deemed 'without prejudice' since it is not a ruling on the merits of the case.  The debt could remain on your credit report.

2.  A Ruling in Your Favor

A 'ruling in your favor' by the court is the ultimate win!  Here, the credit card company has no viable evidence it can use against you.  Here, you would have the right to file for monetary compensation against the creditor.  At this point, I could continue to partner with you to remove the debt from your credit report.

3.  A Ruling in Favor of the Credit Card Company

If a court were to rule in favor of the credit card company, you could face a judgment which would reveal the amount of money you would be obliged to pay.  If necessary, property liens, bank-account levies, and property seizures could be employed to assist creditors with regaining the money they are due.

4.  An Agreed Settlement

At times, a trial can be avoided altogether.  This can take place if all parties reach an agreement and payment schedule that is acceptable to both sides.   

Secured Debt

Credit-card debt does not demand collateral; but secured debt does.  Because of this, secured debt is less risky since vehicles, homes, business property, business equipment, pricey jewelry and other items can be liquidated from the debtor in the event of a default.

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

You Have a Professional You Can Count On

As a seasoned attorney, I will navigate you through the legal in's and out's associated with debt lawsuits.  Creditors have powerful lawyers on their side to fight for their rights; and so should you!

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

***  Defense from debt-buyer suits

***  Defense from original-creditor suits

***  Defense from vehicle repossession

***  Defense from loan-deficiency suits

*** Chapter 7 Bankruptcy

I look forward to partnering with you!


                                                                               James Foley

                                    ~Credit Card Lawsuit Defense & Bankruptcy Attorney~



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