If you've been hit with a credit card debt lawsuit, it may have been a wake-up call that your finances are no longer manageable. But how should you proceed? Is there any way to save your finances? Is there any way to stop the lawsuit?
You may be surprised to learn that bankruptcy may help you get back on top of your finances and end your creditor's claims against you.
If you're ready to ask these and other questions directly to a bankruptcy lawyer, simply fill out the case review form below to connect with a lawyer today for a free case evaluation.
The good news if you're facing charges from a credit card company is that filing for bankruptcy may help ease your financial woes and offer you a form of debt relief assistance. Here's how.
Though bankruptcy courts often discharge credit card debts, there are some restrictions on this practice. Credit card purchases of luxury goods made within 60 days of a bankruptcy filing or made after meeting with a bankruptcy lawyer are often non-dischargeable. However, if you are facing a lawsuit from a credit card company or debt collector, odds are the debt is old enough to be eligible for discharge in bankruptcy.
If you racked up credit card debt several years ago, but creditors are just now knocking on your door, chances are they’re acting too late to recover their money.
Statutes of limitation, which vary by state, prevent creditors and debt collectors from seeking repayment of credit card bills after a certain period of time. According to the Federal Trade Commission, most states set this time limit between three and ten years.
Here are a few things to remember about credit card debt and statutes of limitation:
Remember, if a credit card company has filed a collection action against you, there are a number of legal obstacles the company must first overcome.
Since these statutes of limitation often have harsh consequences for creditors, they frequently search for loopholes to catch innocent credit card users.
For example, the clock on the statutes of limitation may restart if you make a small payment on an old debt. In fact, the clock may even restart if you simply acknowledge an old debt.
As a result, be careful about acknowledging old debts if you receive calls from credit card companies or collection agencies. If debtors receive calls from creditors about old debts, they may simply ignore the call and send a letter claiming they are not aware of the debt in question.
For more information on your state’s credit card laws, contact a local bankruptcy lawyer today.
If you're interested in finding out whether filing for personal bankruptcy might be the solution you need for a credit card debt lawsuit, you can connect with a bankruptcy lawyer practicing in your town. During a free consultation with your lawyer, you can ask questions specific to your circumstances and find out more about how bankruptcy might be able to help you. Simply fill out the case review form below to get started now.