Credit Card Debt Lawsuits in Arizona
If You’ve Been Sued for Credit Card Debt, We Can Help.
You must act quickly to avoid a default judgment. Call our office for a free consultation.
As credit card debt has risen in recent years, so have credit card debt lawsuits. After a period of non-payment, your account will be “charged-off”. But this does not mean the bank can’t or won’t come after you for the debt. Sometimes, the bank will sell your debt to a third party debt buyer or debt collection agency. If you’ve been sued by a debt buyer, click here for more on defending debt buyer lawsuits, as they have unique issues. However, there are several banks that will kept the account “in-house” and sue you directly. Here is a partial list:
- American Express Bank FSB (AMEX)
- American Express Centurion Bank (AMEX)
- FIA Card Services, NA
- Discover Bank (Discover Card)
- Capital One Bank (USA), N.A.
- Citibank (South Dakota), N.A.
What Should You Do If You’ve Been Sued for Credit Card Debt?
There are basically three options if you’ve been sued.
This is the one option you should never take. You should never ignore a credit card lawsuit. If you do, the bank will get a default judgment against you, which will likely include even more than you thought you owed. For example, they may tack on additional interest, late fees, attorneys’ fees, court costs, etc.
That judgment then becomes enforceable in the State of Arizona. The judgment can be recorded with the county recorder and act as a lien on your property. With a final judgment in hand, the bank can also garnish your bank accounts, which means you may wake up one day and find a very large withdrawal has been made from your account. Perhaps most disturbing (and embarrassing) is the bank can garnish your wages. That means your employer will certainly find out about your debt problems.
So you should never ignore the lawsuit and allow this to happen.
The filing of a bankruptcy petition will stop collection efforts, due to the “automatic stay” that comes with a bankruptcy filing. However, bankruptcy is very serious and should be a last resort, not to be used as a stall tactic for a credit card lawsuit. If bankruptcy would be in your best interest, we will let you know.
Defend & Settle the Credit Card Lawsuit
For many people, this is the best option. Our firm is skilled at defending creditor lawsuits and negotiating favorable settlements that bring an end to the lawsuit and credit card debt. We are highly skilled litigators, with decades of experience defending debt lawsuits in Arizona. As part of our debt settlement process, we will defend the lawsuit to prevent a default judgment and gain leverage for a negotiated settlement.
We will research and analyze your legal defenses as part of the process and negotiations. In some cases, the bank or plaintiff may not even have a right to sue you and we will take action to protect your rights and get the case dismissed if it is warranted. Here is a partial list of defenses that might apply:
- Statute of Limitations Expired
- Identity Theft
- Improper Party
- Defective Personal Guarantee
- Accord & Satisfaction
A successful defense and credit card debt negotiation means that at the end of the process, the case is dismissed and/or our clients settle their debt for a fraction of the balance claimed and avoid bankruptcy. They can then move on with their life without the debt.
Call today for a free consultation with an attorney.