Once a lawyer is involved in the collection of a credit card debt against you, many of the payment options you might have once had evaporate. You will need to negotiate or face the legal consequences.
Notice Arrives
Once the notice that your credit card debt is now in the hands of a collection law firm arrives, you should first review your situation. Banks and other financial institutions make mistakes like everyone else, so you should first make sure that the debt is real. If it is not and/or you can prove fraud, then you should immediately contact the lawyer with your proof.
Contact
Contact the collection lawyer about your financial situation. Keep in mind that under the Fair Debt Collections Act everything you tell the collectors or the lawyer can be used against you to collect the debt. That means that if you send a bank statement to show you have no money, the collectors can now use that information to see if they can levy, or seize, the funds in the bank and any other accounts you might have at that bank. If you send a pay stub, then they know you are working and can levy (or garnish) your wages--up to 25% of your take-home pay in most state--when they get a judgment.
Negotiate
The lawyer will still be suing you as you try to negotiate, and unless you have money to fight the lawsuit you will have to let that go on. Cut the best deal you can for the balance owed and try to get onto a manageable payment schedule and stick to it. The judgment will stay with the lawyer, and the firm will hold it in case you falter in the repayment plan. If you do, you risk having your bank account levied and your wages garnished.
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