Just because a lawyer contacts you about your credit card debt doesn't mean that your case has to go to court. If you hear from an attorney about your credit card debt, don't ignore the communication. You may still be able to negotiate a payment plan or settlement. Learn your rights and, if possible, seek legal advice.
Your Rights
Credit card companies or their collection agencies might turn your debt over to a lawyer. This usually happens if you haven't responded to other communications and they are considering taking the matter to court. If a lawyer regularly collects debts as part of her practice, the Fair Debt Collections Practices Act (FDCPA) regulates her and her employees. The FDCPA protects you from abusive collection tactics, which include calling you at inconvenient hours, calling you at work if you have informed them that your employer does not permit personal calls, and threatening you with actions they do not intend to take. For example, it is illegal for a debt collection lawyer to threaten to sue you unless she actually plans to do so.
Verify the Debt
Under the FDCPA, you have a right to verification of the debt. Send a letter in writing within 30 days of hearing from the lawyer asking him to verify the debt for you, including the amount of money you actually owe and the name of your original creditor. You should also ask him for the date on which you allegedly defaulted on the credit card bill. If the debt is older than the statute of limitations in your state, you have a defense against a lawsuit. Send a certified letter to the lawyer telling him that the debt is no longer collectible.
Attempt to Settle Your Debt
If the debt is valid, attempt to work out a payment arrangement or make an offer to settle the debt for less than what you actually owe. If you don't do this, your case could go to court. If the lawyer wins a lawsuit against you, you'll have to pay the debt as well as any court costs and legal fees. The judgment will also show up on your credit report, which can cause serious problems for you if you want to take out new credit, rent an apartment or find a new job.
Respond to a Court Summons
Never ignore a summons to appear in court. If the lawyer sues you and you don't show up, the judge can issue a default judgment against you. This means that you've lost the case just because you didn't appear to give your side of the story. If you get a summons, try to get a lawyer or contact the Legal Aid Society in your area. The Legal Aid Society may not be able to provide you with a lawyer but they can help you prepare for going to court. If you cannot afford the court appearance fee, ask the courthouse how you can get a fee waiver. By showing up in court, you demonstrate good faith to both the judge and your creditor, and may be able to work out a repayment plan that does not involve wage garnishment or the levying of your bank accounts.
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