I Am Being Sued for Old Credit Card Debt

If you have old debt on which you have defaulted, there may come a day when you get a court summons in the mail --- the creditor is suing you. This can happen often with credit card debt. Knowing your rights when being sued for old credit card debt can help you navigate the situation with as minimal a hit to your credit score and your wallet as possible.

Do Not Contact the Credit Card Company or Defendant

If you have been served in a lawsuit claiming that you owe old credit card debt, it is important that you handle the situation promptly but delicately. Have all of your background research completed and speak with a lawyer prior to responding in any way to the suit. Anything that you say, admit to or promise the defendant will be used in his suit against you.

Research the Amount Actually Owing

Go through your files and pull out any documentation related to the credit card that you can find --- old statements, payment receipts, demands for payment, etc. The amounts listed in the lawsuit may not match up exactly with what you think you owe because the defendant has likely added on legal and collection fees. The more documentation you can find, the better you can defend yourself against the suit.

Check Your State's Statute of Limitations

Every state has a statute of limitations that restricts a creditor from pursing collection and legal action on a debt after a certain amount of time has passed. Statutes of limitation typically range from three to 15 years. If your default occurred prior to the limitation period, you are likely to be able to defend yourself successfully against a lawsuit. One of the largest risks of contacting the defendant or credit card company, however, is that it can potentially re-start the clock on the statute and re-activate the debt.

Consult with an Attorney

Once you have compiled all of the documentation on your debt, speak with a law firm that specializes in credit management. It will be able to review the suit and the facts of the case to determine if you even need to respond to the suit. If the debt is owing and the statute has not run out, an experienced attorney can help you work out a settlement with the defendant out-of-court. You may be able to settle the debt for less than you owe or you may be able to make payments over time.