Credit Card Debt Relief – How To Eliminate Credit Debt And Avoid Being Sued

The short answer to whether you can you be sued for credit card debts is yes

, though it is useful to understand a bit more about the chances of this happening and what you can do to stop it. If you have spent money on credit, you do have a legal obligation to pay it back, so the credit card company you owe the money to is entitled to take legal action to get the money. However, they are only likely to do this in certain circumstances, and will certainly not do it automatically as a matter of course.

If you are being threatened with legal action, it is possible to take steps to reduce the chances of actually being sued. Quite often the credit card company is threatening to sue you in the hope of scaring you into repaying the money. They would usually rather reach some sort of settlement than have to go to the cost and trouble of taking you to court.

If things have got as far as your having received a summons to attend court, you must seek legal advice and be sure to attend court as required. If you have not been to court before for a debt, the worst that can happen is that if the court upholds the claim of the credit card company a judgment will be made against you and you will be ordered to repay the money. This does not mean that you have to somehow repay the full amount all at once. The court will examine your financial situation and set out repayment terms based on what you should be able to manage.

If you have not yet actually been sued, you need to take steps to show the credit card company that you are not able to repay what you owe, but that you are serious about wanting to settle the debt. The best course of action for you will depend on your particular circumstances. If you are in genuine hardship and do not have enough money coming in to keep up with repayments, then for US residents the best course of action is likely to be debt settlement. For UK residents in that situation the best route is probably an Individual Voluntary Arrangement, or IVA.

Under a debt settlement program you will start by making regular payments into a settlement account instead of to your creditors. As the money builds up a negotiator will work on your behalf to reach settlements with the credit card companies. When settlements are reached, the money in your fund is used to pay them off.

If your circumstances are not quite so dire, and you have an income that would allow you make a reasonable payment each month, then you are probably best suited to a debt management plan. This is often referred to as debt consolidation, but that term is sometimes used to mean taking out a new loan, which would not be recommended. A debt management plan does not involve borrowing any more money.

Under a debt management plan, a debt advisor will negotiate with the credit card companies to change the arrangements for paying back what you owe. By getting agreement to reduce interest rates and even waive penalty charges and fees, they are able to bring your monthly repayment amounts back within what you can afford. Instead of you dealing with each card company directly, under the plan you only pay one affordable amount each month to the debt management company, who then take care of the payment of all your debts.

It is still possible for you to be sued for credit card debts when you are in a debt management plan or debt settlement program, but the chances of it happening are greatly reduced, because you can be seen by the card companies to be taking steps to address the situation.

If you wish to approach a debt management or settlement company, apply to a few of them so that you can then compare what each one offers you. Ensure that you avoid disreputable organizations by using only the most well established and reputable companies. You can start off by following recommendations on the author's website for the best debt management companies and the most reputable debt settlement companies.

Credit Card Debt Relief How To Eliminate Credit Debt And Avoid Being Sued

By: Clyde Archer

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