How to Handle Being Sued for Old Credit Card Debt

America's total consumer debt is more than $2.44 trillion, according to creditcards.com, which adds that the credit card default rate as of May 2010 stood at more than 11 percent. Individuals who default on credit agreements run the risk of poor credit ratings and eventually lawsuits. If you are being sued for old credit card debt, there are steps you can take to protect yourself and achieve the best possible outcome.

Instructions

1

Check the statute of limitations for credit card debt in your state. If the statute of limitations has passed, you cannot be legally sued for the debt. You may have obligations to pay back the debt, but you cannot be sued in court.

2

Write a letter to the collection company that holds the debt. Explain that you wish no further contact with it. If the debt has passed the statute of limitations, state that the debt is time-barred and you cannot be sued for it. The company must leave you alone or be in violation of the Fair Debt Collection Practices Act.

3

Offer no payment if the debt has passed the statute of limitations. Doing so can make an old debt new and reinstate the credit card company's right to sue.

4

Consider negotiating a lump-sum payment if the debt is still within the statute of limitations. There is a good chance the company will accept the offer and mark the debt as settled.

5

Contact a consumer attorney. An attorney can advise you on the best course of action if your debt is still within the statute of limitations. The National Association for Consumer Advocates is a resource for finding an attorney near you (see the Resource section for a link).