How to Stop Creditors From Taking Legal Action

If you stop paying your loans and credit cards, your lenders may take legal action to recover the unpaid balance. Being sued for a debt can trigger a judgment on your credit report and a reduced credit score. But with quick action, you can stop creditors from taking legal action.

Instructions

1

Hire an attorney. A creditor may file a lawsuit past the statue of limitations for your state. If an old creditor resurfaces and threatens a lawsuit to collect on an old debt, talk to an attorney first to see if you're required to pay the money.

2

Ask the creditor to provide evidence that you owe the debt. If you don't recognize a debt or don't believe that you owe a debt, respond by asking your creditor to send you written proof that you owe the money. Creditors have to provide this information or stop collection attempts.

3

Negotiate with your creditors. If you do owe a debt, work with creditors to prevent a lawsuit. Resume payments and agree to send a specific amount each week or month until you're able to pay off the balance. You can also ask for a debt settlement to pay off the debt for less than you owe. Creditors are open to debt settlements when accounts are past due.