A creditor can file a lawsuit to collect payment when you default on a credit card payment or other debt. Lawsuits start with a summons and complaint. If your receive legal documents from a debt collector regarding a lawsuit, you should immediately consult with a lawyer to determine all of your options. If you fail to respond to the lawsuit, the court can enter a default judgment against you, which would allow creditors to garnish your wages, in states that do not have strong debtor protection laws to prevent garnishment; seize your bank accounts; and place a lien on your property. Creditors actually rely on debtors to not respond to these lawsuits, which, unfortunately, happens in the majority of cases. It is important to note that creditors do not want to have to actually litigate these cases and the presence of Guardian Litigation Group, LLP can put significant pressure on them to settle.
Debt collectors must prove they have a case to collect the debt for the lawsuit to succeed. Our debt collection lawyers have successfully defended countless clients against big banks, credit card companies, and debt collection agencies.
We are familiar with the various defenses to these types of lawsuits, including:
Missing paperwork that can verify the agreement between you and the original
creditor, such as the original cardmember agreement, copies of statements,
and payment records
Inaccurate credit and billing histories for debt purchased by collectors
The statute of limitations has expired