One of the hugest fears people have when they are considering credit card debt settlement is being sued by a creditor. The question is often asked, “What are the chances of them suing me while I’m attempting to work out a credit card debt settlement?” To get to know the answer you must first learn the process of credit card debt collection litigation.
Ever known about it before? Terrifying debtors with credit card lawsuit, wage garnishments and arrests have been a staple in the debt collector’s arsenal for years. If you are trying to work out a credit card debt settlement, you need to know the facts about being sued for unsecured credit. Note, I said unsecured debt; secured debt is a whole different subject.
Credit card lawsuit defense is indeed the method to go as opposed to bankruptcy but it does suggest several probable challenges you won’t experience with bankruptcy. With credit card settlement, creditors are not demand by law to cease in their trying to collect. That being said, here are the ordinary steps debt collection agency needs to go through in getting ready to sue a debtor.
Step #1 – Assets Investigation: A typical investigation may include the next things: skip tracing, confirmation of employment income, corporate affiliations, judgments and bankruptcies, professional licenses, buildings property, automobiles, bank accounts, water vessels and aircrafts. It will also include personal information confirmation such as: date of birth, social security number, social security number fraud check, address history, divorce records, name of spouse and children and child support payments.
Step #2 – Employ a Lawyer: As you realize, employing a lawyer is expensive no matter what the issue is. A debt collector can expect to pay anywhere from $150.00 for hour for an attorney right out of law school and $225.00 and upward for an experienced lawyer. We’ve only been via two steps and already you may see why credit card debt settlement is a better way than a lawsuit.
Step #3 – File The Case In Court: When the lawyer accepts the case, they will be demanded to pay the upfront legal costs like the filing fees, court costs, etc. These fees can range anywhere from depending on the jurisdiction of the lawsuit.
In any of such scenarios, debt collection company will be faced with a mounting legal bill they can exceed what they may or may not have recovered. Clearly, if the income is not there – or there seems to be a gray area on their capability to gather, it would be to their benefit to work out a credit card debt settlement.
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