FAQ: A Creditor Has Taken Me to Court Over Credit Cards. What Are My Options?

Answer:

There’s been a lot of news out lately about the improper tactics creditors are using to take debtors to court, including charging them with more debt than they owe and using the consumer’s inability to pay an attorney to scare them into paying.

If you find yourself being sued in court over credit card debt, you have a few options.

  • First, if the alleged debt is incorrect, see if you have records proving it’s been paid. See our previous article on e-billing to learn how to protect yourself in the future.
  • Contact the creditor and make sure they know the debt is false. If at all possible, provide them with copies of proof you’ve paid.
  • Talk with an attorney, even if you don’t think you can afford one. Many attorneys will tell you just to pay the debt, so make sure you get advice from someone who is concerned about your best interest and isn’t afraid to represent you in court even if there’s not a lot of money in it for them. If you live in Shelby County, our Memphis bankruptcy law firm can help you with the process; the conversation with us is free.
  • If you’re already in debt, don’t discount the option of bankruptcy. In many cases, bankruptcy can clear the debt you already owe and even have the fake debt discharged so you don’t have to pay. This is especially true for credit card debt.

Every situation is unique, so if you have more questions about your specific case, don’t hesitate to contact our lawyers. We’ll do everything we can to help.