Once you have been served with a credit card lawsuit, you typically have five options to choose from:

Do Nothing.  I had lunch with a County Court at Law judge who told me that about 95% of the credit card lawsuits filed in his court are won by the debt collector because the person being sued simply does nothing after they are served with the lawsuit!  If the debt collector wins, then the court enters a judgment against YOU.

That judgment is valid for 10 years, and the debt collector can then use that judgment to garnish your bank account.  There’s no wage garnishment in Texas for this, but there’s bank account garnishment!

Attempt to Negotiate With The Debt Collector.  I’ve seen many clients in my office after they have unsuccessfully attempted to negotiate with the debt collector.  They said they called the debt collector’s attorney’s office, but they couldn’t reach an agreement.   Then I have to tell them the bad news: time ran out on them.

When you get served with a lawsuit, it has a notice that tells you the deadline for filing a written answer with the court.  If you miss that deadline, the court will enter a default judgment against you.

So, calling the debt collector’s attorney’s office does nothing to stop the clock.  Remember, their goal is to run out the clock so that they can get the court to enter a default judgment against you.

Represent Yourself.  You can represent yourself, but do you know what to do?  Do you have the time to work the case so that you can win?  The debt collector has an attorney that handles these cases for a living.  So, you’re starting with a severe disadvantage.

Do you fully understand the defenses and strategies that will help you win your case?  In debt buyer cases, there are a variety of defenses and strategies that can help you win your case?  Sure, you can get lots of good information on the internet about handling debt buyer cases, but are you familiar with how your judge rules on various defensive strategies in cases like yours?

Retain an Attorney To Defend The Lawsuit.  You can expect to spend $1,500 to hire a lawyer to defend a typical debt buyer lawsuit, except the fee will be greater if the amount in dispute is larger than $10,000.  Why?  The attorneys for the debt buyer fight harder when there is more at stake.  If they fight harder, then it requires more work to defend against the lawsuit.

I know, you don’t want to ask your barber if you need a haircut, but you should strongly consider hiring a lawyer.   The issue is not whether you can afford to hire a lawyer to do credit card lawsuit defense, but whether you can afford NOT to hire a lawyer!

If you lose your case, the debt collector gets the court to enter a judgment against you at the end of the case.  That judgment is valid for 10 years and can be used to garnish your bank account.  If the debt collector takes all the cash out of your bank account, how are you going to cover your house payment, car payment and living expenses?  Finding a way to hire a credit card lawsuit defense lawyer may end up saving you thousands of dollars in the long run.  Choose carefully.

File Bankruptcy.  If you have a way to handle your debt problems without having to file bankruptcy, then it is probably a better option than filing bankruptcy, so long as it doesn’t involve tapping into your retirement money or home equity.

Schedule a No-Obligation Consultation

If you are facing a lawsuit by a debt buyer, give me a call.  I am happy to review your case a give you your options on the best way to proceed.