How to Beat a Credit Card Law Suit

Beating a credit card lawsuit is all but impossible unless fraud or identity theft can be established. There are some tactics that can slow the process, but the law is on the creditor's side or his agent, a law firm. Some law firms that collect on these sorts of lawsuits seek "lay down" business--that is, debtors who do not fight the suit. By fighting the suit, there is a chance that you can beat it.

Instructions

1

Request a validation of the debt. This is a temporary way to suspend collection action. You have to send a written request to the creditor, and it must, by law, send you confirmation that it is you that owes the debt. In the meantime, it must suspend all collection action.

2

Answer the lawsuit when you receive the copy. The lawyer sending the paperwork to you is hoping you will ignore it. If you do, in many states, the lawyer is then able to motion the court for a default judgment and begin to collect against you and your assets. That means garnishing your wages (and your spouse's in some states), seizing your bank accounts and/or putting liens on your property. You can also try to negotiate a lesser amount if you know you owe the money and see if that will satisfy the creditor.

3

Research your state's laws to see if the lawsuit is still legal in your state. Some states allow lawsuits for seven years after the last sale, while others limit a right to sue to four years. The lawyer may be trying to get a quick judgment before you realize he cannot sue you.

4

Contact the lawyer and explain your financial situation. Since he is acting on the orders of another party, he may not care about threats of bankruptcy. His job is to get a judgment and cash if at all possible. But he may want to have good statistics to report to the creditor, so he might stop the suit if your situation is dire. He may not stop the suit, however, and you will have a judgment against you.

5

If all else fails, file for bankruptcy. Though this a much more involved process than it once was, it will retire the debt in some cases.