Do you want to go to court for a credit card debt? Going to court can be a scary thought for any debtor, but it is not a hopeless situation. You have several options to help get out of debt and stay out of debt. If you are behind in your credit card debt, you should consider going to court and using a debt settlement plan or bankruptcy.
When you are behind on your payments, you are at risk of the collection agencies calling your friends and family and reporting them as delinquent on your credit card debt. If this happens you could face criminal charges as well. In addition, the other problems that can arise if you fail to pay your bills are harassing phone calls and letters. You need to keep the peace in your life and find a way to get out of debt.
If you decide to go to court for a credit card debt, there are two options that may work for you. You can use a debt settlement plan or a full blown bankruptcy. These two options have their pros and cons.
A debt settlement plan will allow you to pay less money each month with a monthly payment that is easier to handle. It can also help you repair your credit rating and relieve stress. Debt collectors are not as likely to call if you are using a debt settlement agreement. However, the agreement does not cover the entire amount of your debt so you will have to pay the remainder from your own pocket.
Many people prefer the debt settlement plan because it is less expensive and easier to manage. You will be able to save money by making reasonable payment arrangements. The downside of using the debt settlement plan is that you must have at least $1000 in unsecured credit card debt before you and your creditors will consider an agreement. In order to make sure you can afford an agreement you must have enough unsecured debt so you can prove that you can settle the debt. If you cannot prove this then you may still get approved for a debt settlement plan but you will not be able to settle all of your debt.
Going to court for a credit card debt will not only hurt your credit rating, but it will also cost you a lot of money. You will have to hire a lawyer who will help you with the negotiations. You will have to pay the fees for these services plus a percentage of what you save from settling your debts. This means that going to court for debt settlement will end up costing you a lot more money than if you had just hired a professional negotiator.
Even if you do not have the money to hire an attorney, the court summons that you will receive will mean that you are obligated to go to court. Once you get the court summons, you are required to respond within a certain time frame. If you ignore the summons you will be violating your state’s law and could be held in contempt of court.
Going to court for a credit card debt is definitely a step you don’t want to take. Fortunately, once you receive a court summons for credit card debt you do have options. Hiring an attorney should be your first option followed by researching other legal options such as debt collectors.
Debt collectors are companies that work on behalf of creditors in order to collect on past due accounts. The good news is that there is a relatively low chance of being sued personally by a debt collector. This is because they operate in the same manner as personal law firms. In other words, if the debt collector has served a lawsuit on you then you probably have some rights. In order to find out exactly what your rights are it is highly recommended that you contact a personal injury lawyer or a law enforcement agency for further information.
Once you receive the court summons for credit card debt, it is highly recommended that you do nothing at all and simply respond by supplying the information requested by the debt collector. This way they cannot come after you personally with a lawsuit. If you still owe money to the creditors, you may want to seek debt relief with a reputable credit counseling organization or a consumer credit counseling service.
A court summons for credit card debt is an inconvenience that you will definitely want to avoid. If you take the time to contact your creditors and request repayment of the issue should be resolved. Credit card issuers and collectors also recognize that you do not have very much money available to pay back a debt. In this situation it is almost always a good idea to just negotiate a repayment plan.