One of the greatest fears of people get when they are considering debt settlement credit card being sued by a creditor and a debt collection company. The question is often asked: "What are the chances that sued me while I'm trying to draw a card Credit Debt Settlement? "To understand the answer one must first understand the process of debt collection litigation.
This session will take a look at the rings of a creditor or collection company debt must be going through in order to sue a debtor. This knowledge will help you understand your options to be served with a lawsuit or beaten with a wage garnishment.
Ever heard this conversation before? "Sir / Madam, if you do not receive a payment by this Friday, unfortunately, leaves us no choice you demand. "Threatening to debtors with lawsuits, wage garnishments and arrests have been a staple in the arsenal of the debt collector for years. If you are trying to work a solution card balances, you need to know the facts about being sued for unsecured debt. Note, I said the unsecured debt, debt secured is a completely different subject.
Credit card debt is really the way forward against bankruptcy, but it does offer some potential challenges not experience with bankruptcy. One is a large, once a person has the bankruptcy, creditors must stop all collection activities! With settlement of credit card debt, creditors are not bound by law to cease in their attempts to collect. That said, here are the normal steps of a creditor or collection agency the debt has to go through preparing to sue a debtor.
Step 1 – Asset Investigations: It makes no sense to sue someone who can not afford to pay. As the old saying, "You can not get blood from a turnip!" This first step involves the recruitment of a researcher working for the likelihood of collecting the sentence in case they do sue and win. A typical research may include the following: skip tracing, verification of employment income, corporate affiliations, liens, judgments and bankruptcies, professional licenses, property estate, automobiles, bank accounts, brokerage accounts, boats and aircraft. Also include confirmation of personal information such as date of birth, social security number, social security number of fraudulent checks, address history, divorce records, name of spouse and children and child support payments.
The average going rate for a heritage research is about $ 400.00 plus expenses where appropriate. This step is vital, because it has good business sense for a company to court if they do not know whether his trial will be collectible. No sane company will skip this step.
Step # 2 – hire an attorney: As you know, the hiring of a lawyer is not cheap, no matter what it is. A lender debt collector or expect to pay between $ 150.00 per hour for a law attorney and law school and up $ 225.00 for an experienced lawyer. We have only been through two steps and you can see you credit card debt settlement is a better option than litigation.
Step # 3 – Court orders: A After the lawyer takes the case, are obliged to pay the upfront legal costs such as fees, court costs, etc. These fees can range from $ 700.00 to 1300.00 dollars depending on the jurisdiction of the claim. The question is that weight is, "Do we have a chance in court or make a credit card settlement Debt initiated by the debtor? "
Step # 4 – cross your fingers: Why do you have to cross our fingers and hope that all the stars are aligned in their favor? If you decide to go ahead with legal action and are given a wage garnishment, the debtor could leave that job and they deserve is right back to square one. If the lawsuit the debtor decides to file bankruptcy, the creditor or collection company debt end up getting nothing. If the debtor sells its assets, gives trash containers and their bank accounts, again the company that initiated the application does not receive anything. Now you see why your credit card settlement debt is by far the best option for all parties involved.
But worst of all scenarios is whether the debtor has one of two things: (a). Appears in court with a consumer lawyer whose willing to fight as if this is the end of the world. Or (b). The debtor chooses to represent himself Pro Se and is fully prepared to drag this issue the longer route with several legal moves related legal FDCPA, FCRA and state laws.
In any of these scenarios, the creditor or debt collection company will face a mounting bill for its legal reach beyond what may or may not have recovered. Clearly, if assets and revenues are not there – or not seems to be a gray area in their ability to collect, be in your favor to make a credit card debt settlement.
If you have questions or concerns about debt relief, debt counseling or need free debt advice, go to the Get Out of Debt Experts. You Won’t Find This kind of Guidance Anywhere Else, Not For Free.
Want to learn how to save thousands of dollars by performing your own Debt Settlement? If so, Click on DIY: Settle Credit Card Debt.
Debt Settlement Discounts, Scams
