What Are Your Options If You Are Sued While In a Debt Settlement Program

Do You Have Past Due Credit? 

You might not believe it, but several people suffer severe consequences such as debt collection lawsuits when they fail to make debt repayments. Paying off your debt can be quite tricky and an alarmingly large number of people have past-due credit, which makes things very difficult for them. 

The experience of getting sued for your debt is certainly not a pleasant experience. Most of the time, debtors are utterly clueless as to what they should expect when sued. Many of them even mistakenly ignore the court order and get themselves in even more trouble. 

What Leads To A Collection Lawsuit? 

A credit company will not sue you out of the blue. Certain events can lead up to a collection lawsuit. For instance, the first thing a credit card company does is call you. They will make multiple calls to ensure that you are regular with your payments. If you avoid those calls or pay no heed, the next step will include a written notice. They will deliver a written statement about your payment to your doorstep. If even that does not work, the credit card company has no option but to involve a third-party debt collector. 

When all ends in vain, the credit card company will draft a collection lawsuit against you using this as a last resort. 

What Are Your Options If You Are Sued While In A Debt Settlement Program?

Make Sure You Are Rightfully Accused 

There are numerous instances where people have been wrongly accused. If you have received a court notice, there is no need to panic, as it might not be for you after all. If you receive a court order, the first thing you need to do is contact your collector and ask them to verify your debt. 

This will prove whether or not the debt belongs to you. There can be several mistakes from the collector’s end, confusing you for someone else. Getting the details wrong is not unheard of and happens quite frequently. 

If you are confused about whether you should ask them to verify, rest assured, it is your right to ask for verification. The Consumer Credit Protection Act allows you to send in a written request asking for verification. Mail them a certified letter and send the return receipt request along with it. If you cannot do it yourself, you can even get an attorney to do it for you. 

Reach Out To A Lawyer 

Having legal representation from the get-go is going to make your life a lot easier. Therefore, call your attorney and set up a meeting as soon as you receive the court order. The laws for debt settlement are extensive and can be very confusing for the layman. This is why it is best to keep an attorney in the loop. 

There are some people who simply cannot afford to pay attorneys, and for them, the options don’t end just yet. They can still get help from free legal representation.

Come Up With A Plausible Response 

The response deadline is usually mentioned in the letter, and you need to respond in the given deadline before things escalate. If you fail to communicate or show up, you can best believe that you will lose. 

This is why you need to haste and decide how you’ll approach the situation. Let’s take a look at all the options you have. 

Get Credit Card Debt Relief

If you think that there is no way you will be able to pay off your loan, consider getting Credit Card Debt Relief. For those who don’t know, if you request that your debt be reduced to half its actual amount, you might eventually get it. Credit Card Debt Relief ensures that your debt is either forgiven (excluding taxes) completely or is cut to half. 

If you play your cards right and talk to a debt collector, you can get a reduction on your debt or ask them to make payable installments. 

Credit Counseling 

If you want a debt management plan (DMP), contact a certified credit counselor, and they might be of great help. They usually negotiate with the debt collectors on behalf of the debtors. 

Declare Bankruptcy 

If you have exhausted all your options, filing bankruptcy might be wise. It can protect you against wage and tax refund garnishment. If you declare bankruptcy, you might even save yourself from other consequences such as bank account levies and get Credit Card Debt Relief. However, doing so might affect your credit score considerably. 

In Conclusion 

Do not stress if you are sued in a debt settlement case. Instead,  take the right steps as mentioned in this guide, and you will be good to go. 

This information was originally found at ChristianFinanceBlog.com.