Creditors can sue you if you fail to pay your credit card debt. If they win their case, a court will issue a judgment against you which gives the creditor the ability to file a lien in the public records.
If you are facing a credit card debt lawsuit, you should contact a civil litigation attorney to discuss your options.
Credit Card Debt Collection
A creditor will typically try to use several debt collection methods before filing a lawsuit. They may call you, send letters in the mail requesting payment, or sell the debt to a debt buyer.
Creditors have access to your credit report, so they have some information about your finances. They can determine if you own real property, which they can file a lien against after getting a court judgment.
If you’ve stopped paying and the creditor believes you have assets that could be used to pay a court judgment, they may file a credit card debt lawsuit.
Unsecured vs. Secured Debt
Credit card debt is usually unsecured. This means that there is no specific piece of property that the creditor has a right to repossess if you don’t pay.
If you don’t pay willingly, the creditor’s only recourse is to file a lawsuit. They can’t attempt to file a lien or seize your property without first getting a court judgment.
Responding to the Lawsuit
If you receive notice of a lawsuit, you have a limited time to respond. If you don’t respond, the creditor may win a default judgment against you.
You should talk to an attorney to see if you have any defenses to the debt. Some common reasons the debt may not be collectible include the expiration of the statute of limitations (generally three years in North Carolina) or a violation of state or federal debt collection laws by the creditor.
You can also try to negotiate a settlement with the creditor to avoid the lawsuit. Bankruptcy is also an option, but make sure you consider all of the consequences first.
Proceed carefully if you receive notice of a credit card debt lawsuit and contact a civil litigation attorney for legal help.
King Law Offices is a full-service law firm with an outstanding team of professionals who work diligently, creatively, and compassionately on behalf of our clients each day. We serve the Upstate of South Carolina and Western North Carolina. Call 888-748-KING (5464) today to set up a consultation with one of our dedicated civil litigation attorneys.