How a Credit Card Debt Attorney Can Help You Reclaim Your Future
Credit card debt often leaves Nevadans with bills that continue to rise while credit scores continue to plummet. After some time of continued missed payments, creditors will turn over unpaid debt to a debt collection agency. Debt collectors will then notify debtors that they have fallen behind on their payments and, if the debt remains unpaid, a lawsuit may be filed. Debtors should be aware that they have multiple options regarding how to handle a credit card debt lawsuit. An experienced credit card debt attorney can help you reclaim your future by using his or her knowledge to navigate the legal process.
Knowing when to hire a credit card debt attorney can make all the difference in a debtor’s financial future. Hiring a Nevada attorney can help debtors review the options for their financial circumstances and alleviate the immense pressure of wondering what to do next.
When to Hire a Credit Card Debt Attorney
A credit card debt lawsuit is typically an overwhelming process. Creditors may call the debtor and send multiple letters via mail and e-mail seeking immediate payment. Debtors may feel as if they are drowning in debt, and a credit card debt lawsuit can add to their stress. Hiring a credit card debt attorney can be their best option for success, especially if they are unsure what to do next, do not have a defense, or are hoping to settle the debt out of court.
Settling credit card debt takes refined negotiation skills and a profound knowledge of credit card delinquency laws in Nevada. A credit card debt attorney can relieve the confusion and stress that may plague debtors during the settlement process.
How much does a debt lawyer cost? There is an upfront cost for legal representation, but hiring a debt settlement lawyer can result in better financial resolutions and save debtors money in the long-term. A debtor may only need to pay a fraction of what he or she owes. In some cases, the debtor may not owe anything at all once an attorney reviews his or her case.
What Happens When a Credit Card Company Sues You?
Getting sued by a credit card company can be alarming and stressful for the debtor, especially if he or she has not prior experience of the process. Debtors need to be aware that credit card debt lawsuits may not always advance to the court. A debtor’s attorney can negotiate with the creditor’s attorney outside the courtroom to attempt to resolve the case through a settlement agreement. A settlement agreement may give debtors additional time to pay what is owed, or even decrease the overall amount they are required to repay.
If both attorneys can reach an agreement about the repayment amount, the creditor should drop the credit card debt lawsuit. Debtors must follow all terms within the agreement, however, and failing to meet any requirements may mean that the legal action will continue. If a debtor’s attorney is unable to reach a successful agreement, the creditor will proceed with the credit card debt lawsuit.
The case will then go to court and the judge will listen to both sides of the dispute and review any provided evidence. A judge’s decision may give debtors another opportunity to pay their debts or renegotiate their agreement with the credit card company. If debtors aren’t granted another repayment plan, they will have to pay the original amount, as well as court fees and interest, as soon as possible to avoid enforced collection.
Debtors may need to consider filing for bankruptcy if they are unable to pay back the entire amount in a reasonable amount of time. Bankruptcy can be filed via Chapter 13 or Chapter 7. Each form of bankruptcy has its own timetable for completion and eligibility requirements.
Knowing Your Debt Settlement Options
Debt settlement agreements and bankruptcy are the two most common forms of debt relief. Each helps eliminate the debt owed in different ways and on different timelines.
Debt Settlement
A debt settlement agreement is a contract between a debtor and a creditor that can allow a debt to be deemed paid in full for a lower amount. This payment is usually made as one lump sum and generally between 20%-80% of the total amount owed to the creditor. Lowering the amount due can allow debtors to move forward without any additional charges or interest fees. It also halts any credit card debt lawsuit that a creditor may have filed against a debtor.
Bankruptcy
Bankruptcy may be the best option for some debtors, depending on their ability to repay what they owe. The type of debt owed to the creditor will determine which form of bankruptcy should be filed. The two most common types of bankruptcy are Chapter 13 and Chapter 7. There are some differences to note between the two chapters of bankruptcy before choosing to file to avoid having the bankruptcy dismissed by the court.
A Chapter 13 bankruptcy typically takes 3–5 years to conclude. It requires debtors to make payments each month to a trustee to pay out to creditors. Chapter 13 bankruptcy also allows an individual to catch up on their secured debts, such as house or car payments.
A Chapter 7 bankruptcy may only take 6–9 months to conclude, but may not be the best option for debtors that have secured debt. Debtors must prove they are unable to pay back the amount they owe creditors to be eligible to file this type of bankruptcy. Chapter 7 bankruptcy focuses more on getting rid of large unsecured debts after a set amount of time and can provide the debtor with a clean slate.
What to Do When Facing a Credit Card Debt Lawsuit
When a creditor decides to file a credit card debt lawsuit, the debtor will receive a notice in the mail. After the lawsuit notification is sent, the debtor has a specific time to respond before a hearing date. This gives debtors time to hire an attorney who can advise them of their options, and help choose the best possible financial resolution. This deadline varies from state to state and can be as little as 10 days, but is 21–30 days on average. Ignoring a creditor often results in a default judgment against the debtor, which allows the creditor to proceed with enforced collection.
Navigating the legal system can leave debtors feeling confused. Several complexities can lead to missteps resulting in serious consequences for the debtor. When debtors do not respond to their lawsuits, they may owe more than just their original debt. They may have to pay the court fees and interest for the claim as well. If a debtor is unable to pay the debt, he or she may have his or her wages garnished, bank accounts frozen, or a lien placed on property. It is important for debtors to have an attorney review documents before they sign them. This can help ensure that they do not give up any of their rights, or agree to an offer they cannot afford.
A case may be dismissed if the accused debtor does not actually owe the debt. It is not uncommon for debtors to be victims of identity theft, or the creditor may have made an identification error. A debt settlement lawyer has the authority to require creditors to provide the original contract. This will confirm that any personal information or signatures are accurate and legitimate to the debtor. The statute of limitations is another factor to consider when navigating a credit card debt lawsuit. The statute of limitations varies from state to state, but is three years from the last payment made in Nevada. If the statute of limitations has passed, the creditor is not legally be able to pursue the debtor.
Under the Fair Debt Collection Practices Act (FDCPA), debt collectors must send a notice to the debtor once the debt has been sent to collections. Debtors should request a debt validation letter once they have been notified. The validation letter should list the amount of debt owed and the name of the creditor the debt is owed to. Debtors also have the right to request the name and address of the original creditor within 30 days of receiving a debt validation letter.
How a Credit Card Debt Attorney Can Help
Credit card debt attorneys can help evaluate your case to determine the best approach and help you understand your options and rights under the law. Credit card debt attorneys can speak to the creditor for you to help stop constant phone calls and letters. Your lawyer can also negotiate fair settlements, to help reduce the final amount of debt owed, and advocate for you in court. A debt settlement lawyer can provide expertise, protection, and peace of mind for your financial future.
