Credit Card Lawsuits

| Aug 14, 2011 | Bankruptcy |

Often times, when a credit card company is not paid in a timely fashion they send the debt over to a debt collection company to try to resolve the issue.  When the debt collection company fails, many times they send the debt along to a plaintiff’s attorney who ultimately files a lawsuit against the card holder.  The card holder often has a difficult time raising an effective defense in state court to the lawsuit.

The plaintiff’s attorney is attempting to collect a judgment in most cases that will continue to accrue interest post-judgment until the debt is paid.  Sometimes, a debt settlement plan can be arranged to try to resolve the lawsuit.  However, many times filing a Chapter 7 bankruptcy or even a Chapter 13 bankruptcy is the best way to resolve not only that financial problem, but many others.  Usually, Chapter 7 bankruptcy is the best way to go unless the debtor faces other problems like foreclosure, IRS debt, repossession, or if they do not pass the Means Test.