Receiving the news of a creditor lawsuit can be distressing. You understood that you were in debt, but never thought it would come to this. As random as it may seem, legal action is usually the last resort for debt collection companies. It usually comes after months of missed payments and multiple unsuccessful attempts to contact you regarding debt payment.
The legal system is complex with many regulations and guidelines that can easily confuse someone who is not well-versed in legal procedures. Questions like “Why am I getting sued for credit card debt?” and “What are the possible outcomes of a credit card debt lawsuit?” may arise and worry you. An Illinois credit card debt settlement attorney can answer your questions and serve as your legal ally throughout the lawsuit.
What Constitutes a Creditor Lawsuit?
One of the most common reasons a credit card company may pursue legal action against you is because you broke the terms of the agreement. When you first opened an account with your credit card company, you provided an electronic or physical signature confirming that you understood the agreement. Making late payments or not making payments at all are violations of the agreement and constitute legal action.
Another common situation is when a creditor sells your debt to a third party debt collector or debt buyer. When debt buyers purchase your debt, they have the freedom to either resell it or collect on the amount owed. If they choose to do the latter, you may find yourself on the receiving end of a lawsuit with a company you never heard of. Your debt collection lawsuit can result in one of the following:
Judgment in Your Favor
If the court rules against the plaintiff and in your favor, the creditor or debt collector loses the authority to collect on your debt. Rather than walking away from the situation, you should seek damages to help afford attorney fees. If granted, the judge will order the plaintiff to compensate you for a specified amount.
Court Dismisses the Case
There are many reasons why the courts may dismiss a case. While it may initially seem like a victory, the opportunity is still there for the creditor to re-file the lawsuit and correct any mishaps that lead to the dismissal. An experienced attorney will seek a dismissal “with prejudice” to prevent another lawsuit for the same debt.
Judgment in Favor of the Creditor
A judgment in favor of the creditor makes you legally responsible for debt repayment. It also serves as grounds for wage garnishment, property seizure, bank levies, and many other means of satisfying an unpaid debt. For the best chance of avoiding these consequences, acquire the legal services of an Illinois credit card debt settlement attorney.
Attorney Heather Benveniste with Benveniste Law Offices can pursue legal action on your behalf. She has experience representing the afflicted debtor and will not settle until she resolves your debt under the most favorable terms. Contact us today at 1-800-497-5358 for a free consultation.