Unexpected expenses in conjunction with high-interest rates can make paying off monthly credit card bills a monumental task. If you can only pay off a fraction of a monthly bill, you might find yourself falling deeper and deeper into debt. And when you begin missing payments, a credit card company has the right to file a lawsuit against you to collect their money.
Debt has more significant consequences than just owing a lot of money. Having debt can cause your credit score to plummet, lead to harassing phone calls from collectors, and making it more challenging to get a loan, car, or home. These effects will start happening in as little as 30 to 90 days after your first missed payment.
Fortunately, credit card debt is among the most manageable debts to resolve. Creditors have the fewest rights against you, as opposed to tax or student loans, which you can not evade through bankruptcy. With a solid strategy and sound legal advice, you can get your credit card debt—and your life—back on track.
When you need a credit card debt attorney, make sure to contact Knoxville Bankruptcy Attorney. We have helped countless individuals across Knoxville, TN, get the debt relief they need. We are confident we can assist you no matter how much debt or pressure you are facing.
When You Need a Credit Card Debt Attorney
A credit card company might come after you if you are behind on payments. If that happens, there are two critical scenarios when you’d want the assistance of an attorney:
You Have a Defense Against the Lawsuit.
You should get an attorney if you believe the credit card company is in the wrong; one such defense is the statute of limitations. When a company waits too long to take action,they risk going beyond this legal timeframe, and the debt collection is too old to be enforced. While the statute of limitations varies by state, the range is often between 3 to 6 years.
It is also possible to get rid of your credit card debt in bankruptcy. In this scenario, you would no longer have any responsibility for the debt. Other defenses include stolen identity, mistaken identity, and violations of the Fair Debt Collection Practices Act (FDCPA).
You Need Help Negotiating the Lawsuit Process.
Dealing with creditors and debt collectors can be a hassle. Trying to pay a lump sum to erase your debts, as opposed to incremental payments, can cause even greater financial strain. Having someone to help negotiate a settlement can do wonders for your stress levels and bottom line.
The legal process can also be challenging to traverse, especially if you are not familiar with the jargon or procedures. An attorney can assist when it comes to understanding your options, the consequences of the lawsuit, and how to deal with creditors and debt collectors. That way, you can be confident in every decision you make.
Dealing with Creditors or Debt Collectors
Believe it or not, credit card debt is the easiest form of debt to handle. For instance, if you have to pick between paying off a tax collector or credit card debt collector, go with the former; the government has more power and authority when it comes to enforcing and collecting money owed compared to the credit card companies.
This is because the creditor can only make a “claim” that you have not paid before taking the case to court. The government could garnish your wages or put a lien on your house if you were in debt on taxes, however. Simply put: Don’t panic about creditors or collectors.
The ultimate goal of any credit card debt lawsuit is for the creditors and collectors to recoup their money. Getting the money requires a robust burden of proof, which can make the process less than profitable for them. Make sure you have an expert at your side to ensure you do not pay a cent until the fact that you owe money is proven beyond a doubt.
Results of Credit Card Debt Lawsuit
There are three possible outcomes when it comes to credit card debt lawsuits. A victory is obviously the most ideal scenario for you; the credit card company can’t collect the debts, and you can even request damages from the court to pay for things such as legal fees.
The second and less favorable outcome is a loss in court. Here the court rules in favor of the credit card company, and you will be required to pay a set dollar amount. The creditor will likely be able to collect the payment through various means, such as wage garnishment and liens on your property.
The third and final scenario is a case dismissal. While this might sound ideal at first, having the case dismissed leaves the future murky. The credit card company has the opportunity to re-file the lawsuit and continue pursuing you for money.
Learn More About Credit Card Debt
Don’t face the legal battle alone. Have Knoxville Bankruptcy Attorney at your side to fight for your rights in the courtroom and to assist in navigating the legal process. Schedule an appointment at 865-276-8109 to learn what we can do for you today.