What to Do If You’re Being Sued by a Credit Card Company
What to do if your credit card company sues you
If you need to catch up on your credit card payments, you may be served with a lawsuit from
your credit card company. Don’t panic! There are steps you can take to protect yourself.
What to expect
What to do if you’re facing a credit card lawsuit. Options, tips, & how to rebuild your credit.
When a credit card company sues you, they will file a lawsuit in court. You will be served with
the case, giving you information about the debt and the court date. You can choose to defend
yourself in court, but you may need a better defense if you owe the money.
Options for responding.
Sued by a credit card company? Don’t panic. Here are your options & how to protect your credit.
If you don’t want to defend yourself in court, you can try to settle with the credit card company.
However, be careful what information you give the credit card company, as they may use it to
garnish your wages or bank account.
Another option is to file for bankruptcy. This will stop the lawsuit and discharge your debt.
However, bankruptcy can have negative consequences on your credit score.
Removing Judgment Liens
When someone you owe money to get a judgment against you, they may also put a lien on your
home. In Texas, this is called an Abstract of Judgement, making it hard for you to sell or
refinance your house.
Our lawyer, Veronica Deaver, understands the importance of having a clear title to your home.
She could check the records in the county where your home is; if she finds a lien, she could ask
the Bankruptcy Court to remove it. The judge usually agrees, and Veronica could file a court
order copy with the county. This can clear the title of your home and help you feel more secure.
Our law firm near you in McKinney can offer this service to our clients. Most other law firms
don’t help with this issue if you own a home.
Asking for a Settlement
If you talk to the McKinney lawyer suing you and ask for a deal, they will want you to fill out a
form with information about your money. This includes all your things that are worth money and
where your bank accounts are. The lawyer can take money from your bank accounts if you give
this information.
In Texas, it’s not allowed for someone to take money from your paycheck. But they can take it
from your bank accounts. If you talk to the lawyer suing you and give them your bank account
info, they can take your money. People from other states can say they are from another state and
take your paycheck if your boss is outside Texas.
Also, if you make a deal with the person who sued you, they will tell the tax people about the
money they didn’t make you pay. That means you have to pay taxes for that money that was
forgiven.
How to rebuild your credit
If you file for bankruptcy near McKinney, the credit card company will likely report the debt as
discharged on your credit report. This will improve your credit score over time. You can also
improve your credit score by paying your bills on time and keeping your credit utilization low.
Contact a bankruptcy attorney.
If you’re facing a lawsuit from a credit card company, speaking with an experienced bankruptcy
attorney is essential. They can help you understand your options and protect your rights.
