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Austin Bankruptcy - Credit Card Lawsuits

Bankruptcy and Credit Card Lawsuits

Credit Card Lawsuits to collect past due Credit Card accounts are filed almost everyday in Texas. If you have been sued by a Credit Card Company or an assignee of a Credit Card Company for a delinquent Credit Card debt, you can stop the lawsuit by filing for Bankruptcy. Credit Card Debt is considered unsecured debt, and as such, you can usually get rid of it in bankruptcy. If you have a pending Credit Card Lawsuit, contact the Austin Bankruptcy Attorneys at The Law Offices of R.J.Atkinson for free initial consultation. We can help you to determine whether filing for bankruptcy is the best option to Stop the Credit Card Lawsuit or if defending the suit is a better one. An Austin Bankruptcy Attorney can answer your questions about credit card lawsuits & bankruptcy.

Credit Card Lawsuits are the same as any other lawsuit when it comes to bankruptcy. If you file for bankruptcy, whether it is a Chapter 7 or Chapter 13, it will stop the Credit Card Lawsuit. There is a section of the Bankruptcy Code called the Automatic Stay. The Automatic Stay is the reason most people file for bankruptcy because it stops lawsuits, credit card collectors, foreclosures, repossessions, wage garnishments, and of course, it stops credit card lawsuits. There are some instances where the automatic stay doesn’t always apply such as in child support collections, criminal proceedings, and in certain cases where someone has recently or previously filed a bankruptcy or bankruptcies. The main concept of the automatic stay is to give people a time out from their debt, a break in the action, some breathing room to get things together to either liquidate or reorganize under the Bankruptcy Court’s protection.

Credit Card Debt is considered unsecured debt, which simply means that there is no property securing the debt. And that means that if you are eligible to file bankruptcy you can get rid of the credit card debt. In a Chapter 7 Bankruptcy, you can totally eliminate your credit card debt. If you file a Chapter 13 Bankruptcy you can force the Credit Card Companies to accept whatever you can afford to pay them even if its pennies on the dollar. Either way, filing a bankruptcy of any kind puts you in control and not the credit card company.

Now even though most credit card debt is unsecured, there are some credit card lawsuits which will allege that the credit cards are secured. When you originally received the credit card, you most likely signed the credit card agreement which outlined the terms of the card. This is important because some appliance store credit cards, electronics store credit cards, as well as furniture and department store cards may claim they have a security interest in the property you bought with their credit card. Let the Austin Bankruptcy Attorneys at R.J.Atkinson review your credit card lawsuit and credit card agreement at a free bankruptcy evaluation to determine the nature of interest the credit card company is claiming. It may not be what they claim it is, but it is extremely important in a bankruptcy to know if a claim is secured or unsecured.

Bankruptcy Stops Credit Card Lawsuits

Bankruptcy stops credit card lawsuits, but filing for bankruptcy may not be the best option for some people. It may end up that defending the credit card lawsuit is their best option. Even if they charged the money on the credit cards and owe what is being claimed in the credit card lawsuit, there may be other defenses to the suit which can be raised. Maybe the suit is in the improper forum, maybe the statute of limitations to collect has passed, or they might be asking for something that they’re not entitled to such as attorney fees or certain costs. If there is a defense then it may be worth pursuing. Most people don’t bother to fight credit card lawsuits. For whatever reason, many fear lawsuits and the legal system because they don’t understand or they feel that defending the suit may be too costly. Sometimes just defending a credit card lawsuit will soften the creditor to accept much less than they filed suit for. It’s a numbers game when it comes to credit card lawsuits, and that’s because they are usually sold off or transferred to a 2nd or 3rd party by the time you are sued.

Credit Card Lawsuits are filed in great numbers. It’s like a shotgun approach in that one attorney or law firm may file 10, 20, or even 50 at a time. They are usually creditor lawsuit mills. Since most people never respond these kinds of credit card lawsuits, the plaintiff will often get a judgment, and then try to collect at the time you expect it least. They may hold onto the judgment, renewing it or enrolling it wherever you move if necessary, until you eventually have the means to pay. That’s when they may attach it to your bank account, home, or any nonexempt property. While they are waiting for you to pay, or looking for a way to make you pay, they will have the right to collect interest on the original amount.

When someone fights back, it‘s a different story because they usually aren’t expecting it. Also, it isn’t always cost effective for the party suing to litigate at a jury trial over a period of years over a credit card debt. They have to do a cost benefit analysis because even if they do decide to continue to fight, they know you can file for bankruptcy and potentially waste all their efforts.

If you have been sued by a credit card company or received a credit card lawsuit from an assignee of a credit card company, don’t just ignore it. If you live in Austin, Round Rock, Georgetown, or San Marcos, or in Travis County, Williamson County, Hays County, or in the Counties of Bell, Blanco, Burleson, Burnet, Caldwell, Gillespie, Kimble, Lampasas, Lee, Llano, Mason, McCulloch, San Saba, or Washington, contact the Austin Bankruptcy Attorneys at The Law Offices of R.J.Atkinson for a free initial consultation to assess your credit card lawsuit. We can help you file for bankruptcy to stop the lawsuit, help you to defend the lawsuit, or negotiate with the plaintiff to dismiss the lawsuit. Although every case is different, you always have options to deal with a credit card lawsuit and we welcome the opportunity to discuss your legal options.

Questions about a Credit Card Lawsuit? How do you Stop a Credit Card Lawsuit?

Contact the Austin Bankruptcy Lawyers at R.J.Atkinson: 512-617-2899

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