Credit Card Debt Lawsuits
Have you defaulted on your credit cards? Have you been sued for credit card debt in Arizona? Have you consulted an experienced Tucson debt settlement lawyer?
After several months of nonpayment you can expect lawsuits from your credit card companies. If you have been served for credit card debt you should contact an experienced debt settlement lawyer for a free consultation concerning your best course of action. Time is of the essence as the deadline to file a response is typically twenty days after being served with a lawsuit.
Most of the time you are “personally served” with a lawsuit, or handed the summons and complaint by a process server. If a creditor cannot personally serve you it may request alternative service and may serve you by such methods as mail, etc.
What should I do if I have been served with a lawsuit for credit card debt in Arizona?
Once you have been served with a credit card lawsuit you have a couple options:
First, you can ignore the lawsuit. If you fail to respond the court will grant a default judgment to the creditor and will often add late fees, interest, attorneys’ fees, and court costs. Ignoring the lawsuit is not a good option because it could cause the amount owed to be larger and for the creditor to be able to collect faster.
Second, you can defend the creditor lawsuit and negotiate a settlement. Our experienced debt negotiation lawyers will work closely with your creditors in order to try and obtain a favorable settlement.
Third, if the settlement offer is not manageable, you may want to consider filing Chapter 7 or Chapter 13 bankruptcy. Once you file bankruptcy all collection efforts must cease. However, filing bankruptcy carries serious consequences and should only be used as a last resort.
What if a credit card company has a judgment against me?
Once a creditor has been awarded a judgment it may typically collect in one of three ways. First, a creditor can garnish your wages. The garnishment amount can be as high as twenty-five percent of your gross wages. Second, a creditor may levy your bank accounts. A creditor can send a court order to your bank to withhold funds without notifying you. Third, a creditor can put a lien on your property. For example, if own a rental home with $10,000 of equity and a creditor has a $5,000 judgment against you, a creditor can attach the $5,000 judgment to that rental property.