How to Stop Collection Suits on Credit Cards

Collection agencies prefer to collect debts voluntarily whenever possible, but they do occasionally sue uncooperative debtors. Credit card debts carry a high risk of legal action because interest can continue to accrue after the credit card company sends the debt to a collection agency. The higher the amount of a debt, the more the company wants to collect it and the more likely you are to face a lawsuit. Stopping a lawsuit after a collection agency files it isn't always possible, but in certain situations, a debt collector will drop its lawsuit before the court hearing.

Instructions

1

File an answer with the court in response to the collection agency's summons. If you don't file an answer and neglect to appear at the hearing, the collection agency wins the case by default and never needs to prove its claims against you. Filing an answer demonstrates you intend to defend yourself in the lawsuit -- making it more difficult for the collector to win a judgment. A collection agency that cannot prove its case may drop the lawsuit after you file your answer rather than waste money pursuing a lawsuit it isn't guaranteed to win.

2

Claim an expired statute of limitations as your defense if possible. If the statute of limitations on credit card debt in your state has expired, it's against the law for the collection agency to sue you. In that case, the court would not grant the judgment the collection agency seeks, leaving the company little choice but to drop the lawsuit.

3

Notify the collection agency of your judgment-proof status. If you lack assets or non-exempt income the collection agency could seize after a lawsuit, you are "judgment-proof." Therefore, following through with the lawsuit often would be a waste of time for the collector.

4

Pay your delinquent credit card debt before the court date. This renders the lawsuit unnecessary, and the collection agency will drop the case.

5

File for bankruptcy. When you file a bankruptcy case, you receive the court's protection from collection activity of any kind -- including lawsuits. Filing for bankruptcy forces the collection agency to drop its lawsuit and seek payment through the bankruptcy trustee.