A credit card company has filed a suit against us in civil court. What happens now?

Asked over 5 years ago - Dallas, TX

When we became unable to pay our credit card monthly payments we turned everything over to a debt reduction company. One of the credit cards refuses to work with this company and has now filed suit against us. What happens now?

Attorney answers (3)

  1. Lu Ann Trevino

    Pro

    Contributor Level 19

    Answered . These comments are made for educational purposes only and do not constitute legal advice. No attorney-client relationship exists between us.

    You may have strong procedural defenses to this claim and should get an attorney experienced in credit card debt issues. I recommend Stewart R. Miller, (214) 352-2132.

    If the lender wins (they don't always win), then it gets a judgment. That is not the end of the world.

    Keep in mind that Texas is an extremely debtor friendly state. Nobody gets your house except the lender and the IRS. Nobody gets your car except the lender and the IRS. Nobody gets your wages except the IRS and child support. Nobody gets your pension/retirement/401k/IRA except the IRS. Most people don't have any thing more than that, so there is nothing to get to satisfy a judgment. HOWEVER, a judgment is good for 10 years and can be renewed. Also, the judgment is accruing interest and is being reported to the credit bureaus. The creditor is hoping that one day you will have some money saved for a large credit-based purchase (car or house). When you apply for that loan, the judgment creditor will learn you have cash and will then try again to get you to pay.

  2. Alan James Brinkmeier

    Contributor Level 20

    Answered . Get a modification lawyer to negotiate on your behalf.

    Getting the written documentation you have is a good place to begin. Contact a local lawyer - many may give you a free consultation for an hour - to discuss your specifics. Far too many variables exist in the short post you wrote for any further observation by me. Many Dallas attorneys have information posted here on Avvo.

    You might find my Legal Guide helpful "How to Choose A Lawyer For You"

    http://www.avvo.com/legal-guides/ugc/how-to-cho...

    You might find my Legal Guide helpful " What Do I Tell My Lawyer"

    http://www.avvo.com/legal-guides/ugc/what-do-i-...

    No one can know what the record is in the case because online we cannot see your documents. You need a lawyer. Check with a lawyer in your locale to discuss more of the details.

    Good luck to you.

    NOTE: This answer is made available by the lawyer for educational purposes only. By using or participating in this site you understand that there is no attorney client privilege between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed professional attorney with whom you have established an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question.

  3. Ronald Anthony Sarno

    Contributor Level 20

    Answered . They may be violating the fair debt collection act.
    You might find my legal guide on selecting and hiring a lawyer helpful.
    You might find my legal guide on Is it Legal? Is it Illegal? helpful.
    You might find my legal guide on the understanding the different court systems helpful.
    You might find my legal guide on legal terms used in litigation helpful.
    (Even if you are not filing a lawsuit this information can be useful).


    You might find my legal guide on commercial litigation helpful.
    The prior federal administration severely weakened most state’s laws against excessive interest. Unpaid debts now have practically no ceiling on interest which means the final bill can be much more than the original debt.

    When you have received a collection notice, lawsuit or even a judgment on an old debt which may have already been paid, or belongs to someone else, or has been discharged in bankruptcy, keep the following in mind. After a creditor writes off your debt, it can then be sold to a collection agency. That agency may sell it again and the next one again. By the time the debt is assigned to a law firm, it can be years pass the statute of limitations, all of the original contracts have been lost and there may be no legal foundation for enforcing the debt. One way of knowing this is that the agency will have no discernible address or they will say they are collecting from a creditor, but the creditor does not know who they are. They will call you at work , and they will not listen to any explanation at all. They will refuse any suggested payment plan and demand a large sum at once. Often these collection agencies and even law firms will file a suit against you, misspell your name, or deliberately send it to the wrong address. You have no notice but they go to court anyway, get a default judgment against you when you do not come to court, and file a judgment lien on your assets such as a home you are trying to sell, or they report you to a credit bureau as a deadbeat. You are allowed to send a 100 word explanation in writing to the three credit bureaus (which they must print) as to why the debt is invalid. Also, many attorneys will take such a case on a contingency basis. A Violations of the fair debt collection act has a fee shifting rule (the creditor pays your attorney). Not only do you get the debt out of your life, you may get a financial award also. Be sure to write to your congress representative to have a stronger federal law to restore a ceiling on interest and to curtail these illegal collection practices.
    LEGAL DISCLAIMER
    Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.

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