STRATEGIES TO FIGHT CREDIT CARD DEBT

I have been helping people fight unfair credit card debt in the Houston-Friendswood-Pearland area  for 27 years. I understand the trap of high interest, late fees, and over the limit fees. You feel like a fly caught in a spiders' web. The more you struggle, the more trapped you become. The credit card companies seem to have all of the power.

NOT TRUE. You can fight back. You can be Free. There are three main strategies to fight back..

1. NEGOTIATION. Sometimes, you can negotiate lower interest, longer repayment terms, and even reduced balances. You must actually be behind on your payments for most credit cards to negotiate with you, or your representative. To get reduced balances, they will often require unreasonable lump sum payments or short term payouts. Once the debt is settled, the credit card companies will then send a 1099 to the IRS for the amounts forgiven. You will then be taxed on that amount as if you had earned it.

Negotiation is also voluntary. Credit card companies do not have to participate. Sometimes a partial resolution is no resolution at all.

2. CREDIT CARD LAWSUIT DEFENSE. If you are sued for credit card debt, there are deadlines that must be met or the case is lost. Upon receipt of the lawsuit, you have until the Monday after either 10 days (Justice Court) or 20 days (other state courts) to file an Answer. This is not a Court appearance. It is a written response to the allegations in the lawsuit. If you do not timely file an Answer, then the credit card company wins. It is important to act before this happens.

Even if you file an Answer, most lawsuits of this type now attach "Admissions" or "Interrogatories". These are legal ways to request information from you. These requests must also be answered in a timely manner; if not, you may lose the lawsuit or be in contempt of court.  

It is important to timely fight the credit card lawsuit. The key is that if you properly defend yourself, many times the credit card company or the subsequent collections company cannot make it's case against you. They simply lack the adequate records under Texas law to prove that you owe the debt.

Fighting the lawsuits as they come is necessarily a piecemeal  strategy. The credit card companies have four years to sue. You have to be prepared to defend yourself each time a different creditor files a lawsuit.

3. BANKRUPTCY. The concepts of bankruptcy are discussed more thoroughly elsewhere in this website. (Click here for more information Bankruptcy Information )Sometimes, the advantage to a bankruptcy over the other strategies is its' global nature. Every creditor is forced to participate and be resolved all at in one case.

If you wish to discuss the best strategy for you, please call me at 713-861-5699 or email me at johnsmithattorney@um.att.com