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Make sure you respond to the Complaint and your response is timely filed. Review potential affirmative defenses that could apply to your case. Make the debt collector prove that they have the legal right to sue you.
When your card issuer or a collection agency that has purchased your debt from the issuer can't get you to pay your bill, a lawsuit seeks to obtain a court judgment, which may give the company the right to garnish your wages and bank account until the debt is paid.
Credit card companies may settle for a negotiated amount equal to roughly 40-60 percent of the balance owed, according to the BBB. Credit card companies tend not to publicize settlements, so there are no hard statistics on success rates or settlement amounts.
If you get a summons notifying you that a debt collector is suing you, don't ignore it. If you do, the collector may be able to get a default judgment against you (that is, the court enters judgment in the collector's favor because you didn't respond to defend yourself) and garnish your wages and bank account.
A statute of limitations is a law that tells you how long someone has to sue you. In California, most credit card companies and their debt collectors have only four years to do so. Once that period elapses, the credit card company or collector loses its right to file a lawsuit against you.
Don't ignore it. If you do this, the court will simply rule in the issuer or debt collector's favor. Try to work things out. Answer the summons. Consult an attorney. Go to court. Respond to the ruling.
1Don't ignore it. If you do this, the court will simply rule in the issuer or debt collector's favor.2Try to work things out.3Answer the summons.4Consult an attorney.5Go to court.6Respond to the ruling.
How to negotiate a settlement before going to court. If the debt is active and valid, try to stop the lawsuit by contacting the creditor or the attorney listed on the summons to discuss a settlement. You might offer to pay some of your debt with a lump-sum payment or in monthly installments.
Set Your Timer. You've got only a certain amount of time to file an Answer to the lawsuit. Assess Your Liability. Take a look at the lawsuit papers and take careful notes. Review Your Financial Situation. Make A Realistic Offer. Prepare To Defend The Lawsuit.