How To Beat A Credit Card Lawsuit In Court – Upsolve

In a Nutshell Getting sued by a credit batting order company can be intimidating. possibly you ’ ve become therefore good at ignoring solicitation calls that you ’ rhenium tempted to trash the complaint and summons. Don ’ triiodothyronine. You have legal rights and defenses that you ’ ll fall back by not contesting the lawsuit. Plus, if you fight back in court, your chances of winning the case are much better than you might initially expect .Attorney Serena SiewAttorney Serena Siew Written by Attorney Serena Siew. 
Updated June 21, 2021 Getting sued by a credit wag company can be intimidating. possibly you ’ ve become therefore good at ignoring collection calls that you ’ re tempted to trash the complaint and summons. Don ’ thyroxine. You have legal rights and defenses that you ’ ll lose by not contesting the lawsuit. Plus, if you fight spinal column in woo, your chances of winning the subject are much better than you might initially expect.

Most credit card lawsuits are brought by debt-buyers who do n’t expect you to fight second. They win about 95 % of cases by default. Because facing a no-show is easy, they come to court unprepared and without the documents needed to prove their case.This article provides data about where creditors can go wrong and discusses affirmative defenses that may help you beat a accredit tease lawsuit .

Do You Recognize The Debt?

The debt in question may not be yours. Credit batting order companies generally don ’ metric ton want to take legal action unless you ’ ve made zero payments for about six months and ignored their calls. A lawsuit is a last haunt. sol long as you ’ ve been communicating with credit rating wag companies and making monthly payments on time, even if it ’ south less money than what you owe, they ’ rhenium less probably to sue. But that doesn ’ thymine mean they won ’ metric ton. so if you ’ ve been sued, make surely that the creditor bringing the suit has targeted the right report holder. If you ’ ve been making good religion refund efforts, the creditor charge suit may be going after the incorrect person. When you ’ rhenium sued, you ’ ll be served with two legal documents :

  • A court summons ordering you to appear in court giving the time, date, and placement, and
  • A legal complaint describing the basis of the claim and stating how much you owe

Taking into report a high gear sake rate and late penalties, the total should still be one you recognize. The suing party ( plaintiff ) should be the credit menu company or place where you have a bank account ( or a company that has purchased outstanding debt that primitively belonged to one of these entities ). The party being sued ( defendant ) should be you or a co-signer of the bill. If you have no idea who the plaintiff is ( unless the plaintiff is a debt buyer of your original debt, as explained above ), the position could be a sheath of :

  • identity larceny or credit circuit board fraud : You didn ’ t make or consent to the purchases .
  • Mistaken identity : person opened a credit card account or did business with a company you don ’ t spot .
  • clerical mistake : The accredit poster company made a mistake in bookkeeping .

All of these cases involve mistakes that are not your demerit. Learn how to protect yourself against identity larceny and report credit card fraud. besides remember that credit card companies get names and addresses wrong, excessively. Debt buyers specially. Get a release credit report to make indisputable any claim debt is yours and has not been reported doubly. If the recognition batting order party sold a list of accounts to another agency, the debt buyer may not have the legal properly to sue you. You may have already paid or settled the debt with the original creditor or there may have been some error in the purchase operation. Both are solid legal defenses .

Is This An Old Debt?

After making certain that the debt in question is yours, check to see if it ‘s “ time-barred ” or besides former to sue you. Credit card companies lone have a certain amount of time to bring a case in civil court. Depending on country jurisprudence, this can range between 2–6 years. You ’ ll want to check your local rules to see what legislative act of limitations applies. Time generally begins to run from the date of your last accredit card payment. If excessively much time has passed, you can say thus to the estimate and your case should be dismissed.

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Other Important Questions To Ask Yourself About The Debt

Did a debt collector harass you while trying to collect this debt ? The Fair Debt Collection Practices Act ( FDCPA ) forbids lenders and creditors from engaging in deceitful and deceptive behavior. They besides can ’ triiodothyronine harass you by :

  • Making early-morning or late-night calls
  • Telling family, friends, or others about your debt
  • Phoning after you ’ ve told them they can ’ t shout at influence
  • Trying to speak to you once you ’ ve hired an lawyer
  • Contacting you after you ’ ve written a letter telling them not to

If any of these have happened to you, you may have grounds to raise an FDCPA charge that could result in you collecting adequate or more than enough money from the debt collector to pay the debt. Learn more about how the FDCPA protects consumers and your rights against harassing debt collectors. You can besides learn how to deal with debt collectors and get them to stop calling you. even if you think that you legitimately owe the creditor money, you should still make credit rating calling card companies prove that you owe the accurate dollar measure they ’ ra claim. This is called their “ load of proof ” and it ’ s a tough prerequisite to meet. Most times, their claims are baseless or they ’ re unprepared to prove their motor hotel case .

Have You Filed For Bankruptcy Since You Had This Credit Card?

Chapter 7 Bankruptcy

Credit calling card debts are discharged at the end of chapter 7 bankruptcy proceedings. In “ no-asset ” cases, the trustee can not take any assets because they ’ ra “ exempted ” under country law. In cases of non-exempt assets, some of your property can be sold to pay creditors. however, this scenario is rare. The likelihood of your credit menu debt being discharged at the stopping point of your chapter 7 case depends on what type of encase you had :

  • In a no-asset case, the debt was likely discharged even if you didn ’ deoxythymidine monophosphate tilt the accredit wag debt on the bankruptcy request.
  • In an asset case, normally lone credit calling card debts listed on the petition will have been discharged .

Chapter 13 Bankruptcy

In a chapter 13 bankruptcy case, if the credit card debt was listed on the prayer, it was probably discharged along with your early debts. If the debt was discharged in either a chapter 7 or 13 bankruptcy, that ‘s a defense and you should ask the court to dismiss the shell. You may even have a title against the credit tease company or debt buyer for having violated either the automatic last out or bankruptcy discharge injunction .

Steps To Winning The Lawsuit

After you ‘ve considered the facts and know your defenses, find what type of court will be evaluating your answer or response to the ailment brought against you. In some states, for lower-level small claims courts, checking a box admitting or denying the claim may work for an answer. In a higher-level court, you may have to file a full moon legal pleading. A legal plead is the defendant ’ s dinner dress reply to the plaintiff ‘s complaint. You may need the help of a lawyer to do this. many law firms offer barren consultations, but you ’ ll have to pay for legal services like negotiating on your behalf with creditors, collection agencies, and the estimate. Getting legal advice and person to deal with harassing calls may be worth your peace of beware. Plus, if you have a good refutation like the ones above, the plaintiff may be ordered to pay your lawyer ’ mho fees and other legal fees. If you ca n’t afford a lawyer, you may be able to get spare legal aid from a local legal help company, the American Bar Association ( ABA ) or the National Association of Consumer Advocates ( NACA ). You ’ d only be responsible for minimal court costs like filing fees .

How To Answer The Complaint

Along with the summons and complaint should come instructions concerning what you need to do adjacent. normally, you ’ ll have about 20–30 days to submit an solution. If there ’ s an answer plane provided or in your written plead, you ’ ll want to :

  • Admit or deny each claim
  • Raise any defenses
  • Counter with your own claims against the company
  • Indicate any income ( like Social Security ) excuse from garnishment

Sign the bed of the page and keep a copy of the charge and your answer for your records. Along with your answer, you ’ ll have to include a file fee to the court clerk. If you can ’ deoxythymidine monophosphate afford the file tip, you may qualify for a release. Make certain you answer the complaint within the prison term allowed or a default judgment could be entered against you. A default judgment in the credit card company or debt buyer ’ s favor allows them to take more aggressive steps like :

  • engage garnishment – taking money from your paycheck
  • Levying bank accounts – conduct access to withdraw funds

These are harsh punishments to collect on a debt you may not evening owe. A money judgment besides lowers your citation score. Don ’ metric ton permit corporations bully you into joining the 95 % of people who don ’ deoxythymidine monophosphate contest complaints. Do surprise them by showing up and making them do the heavy lift. Come train by knowing what to say—and leave out—in court. The surveil section will provide you with some basic do ’ mho and don’ts .

How To Answer The Lawsuit

DO NOT tell the court why you have n’t paid. To prevent foreclosure, borrowers often have to write affidavits documenting fiscal hardship. many people think that court proceedings work the same way. They don ’ triiodothyronine. Although you may have a truly sympathetic history, talking about your personal finances may result in a default option opinion because it ’ s not a defense. alternatively, bring receipts, court documents, or affidavits proving a proper legal defense. From reading, you already know that these defenses could involve :

  • Fraud/identity larceny
  • Bankruptcy drop
  • previous debt village
  • Expired codified of limitations
  • irreverence of the FDCPA
  • error by debt buyer
  • Credit menu company ’ s mistake

DO RAISE a proper defense. Without lying, remind the suing parties of their load of proof. If you have nothing else, answer that you may owe something, but not the sum they say you owe. With this answer, you ‘re at least going to force the plaintiffs to prove that you owe the debt and in the total they ’ ve claimed. If they can ’ thymine or aren ’ t prepared that day, respective opportunities could open up :

  • You win and the estimate dismisses your casing ;
  • You could attempt to reduce the amount owed either in a lump-sum requital or payment plan ;
  • You may be able to buy more time to either solve on an acceptable liquidation with the creditor ; or
  • If you ‘re in an overall badly fiscal situation, you could consider bankruptcy for more general debt easing .

If you ’ re interest in filing chapter 7 bankruptcy yourself, see if you ’ re eligible to use Upsolve ’ s barren vane tool. Upsolve can besides help you find a local bankruptcy lawyer who can tell you whether bankruptcy might be a good option for your situation .

Using Discovery

discovery is the process of getting legal information from both parties with the promise of uncovering likely evidence that could help either side. possibly you ’ ve seen the cartoon of a lawyer photocopy and sending a box of documents to another lawyer and that lawyer doing the same before sending the box back. This is a humorous try to explain the process of discovery. discovery is labor-intensive, so If you ’ re in a civil woo that allows it, you ‘ll likely need an lawyer to take advantage of this process. These are the main tools you ’ ll be using in discovery :

  • Interrogatories : Written questions you can ask the other side .
  • Request for admissions from the plaintiff to admit things that would favor your case. failure to respond is deemed an admission .
  • request for production of documents proving you owe “ X ” measure to the plaintiff .

In requests for production, you ‘re looking for any chain of documents proving that the debt buyer has the right to collect from you. You ’ ll besides want any report statements and contract provisions—or disclaimers—showing that the plaintiff has sued you for the right come. Because the debt has changed hands, the buyer will need to show a “ chain of hands ” plug in that account to you. Any mistakes in the exchange break the connect to you. The buyer has no subject without one .

Let’s Summarize…

Although a citation menu lawsuit can be chilling, don ’ deoxythymidine monophosphate rub. Credit circuit board companies and debt collectors can be wrong. Most of the time, they are, in one way or another. Proving that you actually owe the sum claimed shouldn ’ thyroxine be hard for recognition tease and debt buy companies. so far, statistics prove it ’ s a ceaseless struggle. Protecting their bottom line requires preparing for court. But corporations are indeed use to winning against no-shows, they ’ ve come to expect defaults. Judges see their jerry-built paperwork but have to rule in their favor if no one argues. Don ’ t lose like this. Answer. Show up. Fight. Your chances of winning or at least reducing the debt are far better than you think. Written By :

Attorney Serena SiewAttorney Serena Siew Attorney Serena SiewLinkedIn Serena Siew is an lawyer with a specialization in immigration defense and legal write for the general public. She is a member of the State Bar of California and admitted to drill before the California Supreme Court, the U.S. District Court for the Central District Court of Cali … read more about Attorney Serena SiewRead About the Upsolve Team

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Category : Finance

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