Being indebted is an uncomfortable situation that no one actively seeks, yet too often “life” just happens. If you are going through a financial rough patch, you are not alone. In fact, millions of Americans are in debt right now, with the average credit card debt reaching $15,000! If you have been sued by your creditor or a debt collection company over your debt, you may benefit from working out a settlement with the help of a debt settlement attorney.
Are Credit Card Companies Allowed to Sue Me for Debt?
Absolutely. Unfortunately, it is completely legal for credit card companies, debt collectors, and debt buyers to come after your debt by pursuing litigation. When you signed the card’s terms and agreements, you agreed to make timely payments. Falling behind on payments or failing to make them altogether is a violation of that agreement. Oftentimes, credit card companies choose to file a complaint against the cardholder to attempt to recover the debt.
Who Else May Take Legal Action Against Me?
It may take an average of 180 days of unpaid debt for the original creditor to give up and pass your debt along. This may happen before they pursue litigation as a way to minimize their losses. When your debt “goes to collections,” it means that the credit card company has sold your debt — sometimes for as little as three to ten cents on the dollar — to a third party who will then technically “own” your debt and possess many of the same rights as the original creditor. This third party collection agency stands to make a big profit off what they may collect from you; sometimes, these collection agencies go as far as bullying cardholders to get them to pay up.
It is not necessary to give these collection agencies the time of day. If you work with a credit card debt litigation attorney in Illinois, you can make the harassing debt collection calls stop while taking an active step to rebuild your credit. At Benveniste Law Offices, we represent individuals who have received a summons on behalf of a creditor or credit collection company. With our help, we can negotiate a settlement together that can clear you of debt! Call (847) 559-1610 or click here to contact us to discuss your case.