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How to deal when credit card debt leads to a lawsuit

For any Chattanooga resident who has had to deal with the difficulty of paying down credit cards, there is always that fear of what happens if the payments can't be made. If the credit card debt starts to pile up so high that it becomes insurmountable, it is often inevitable that the credit card user could get sued by the credit card company.

Oftentimes, the user may not realize the lawsuit is coming until too late. If the user is falling behind, making delinquent payments or just not making any at all, the suit should be expected. However, dealing with the reality of the financial challenges is often difficult to face and as such, many consumer are caught by surprise when sued. If it happens though, action must be taken quickly. If a payment can be made quickly to pay down or settle the debt that should be done immediately. If that happens, written confirmation should be received from the credit card company. If that can't happen, then other options, such as bankruptcy may need to be sought out in order to avoid a judgment.

Filing for bankruptcy is often needed for a few reasons if the credit card bills are becoming too much. It can be used to stop creditor harassment, because once a debtor has filed, the credit calls must stop due to the automatic stay that is put into place. Further, if Chapter 7 bankruptcy is filed, almost any unsecured consumer debt can be discharged within a few months, which should makes expenses much easier to deal with for a consumer. And finally, if a debtor is dealing with reduced income, bankruptcy can help stretch the remaining income by making the credit card payments finally disappear.

Dealing with financial challenges is difficult for almost anyone. Seeking the right assistance however can make them as painless as possible.

Source: ABC News, "What to Do If You're Sued By Your Credit Card Company," Gerri Detweiler, Aug. 3, 2013

Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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