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Being sued over your delinquent credit card debt? Here’s what to do
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No matter how careful you are about your finances, it’s easy to find yourself in over your head with credit card debt. The convenience of plastic can lull you into a false sense of financial security, leading to overspending and the accumulation of high-interest balances. And before you know it, what started as a simple way to manage expenses can spiral into a daunting financial burden.
The situation has become even more precarious in recent years as credit card interest rates have climbed to near-record highs. After all, as the cost of borrowing increases, so does the difficulty of paying down existing debts. In turn, many cardholders find themselves trapped in a cycle of making minimum payments that barely cover the accruing interest, let alone chip away at the principal balance.
And if you’ve already fallen behind on your credit card payments, the repercussions can include the threat of legal action. While being sued is serious, the good news is that there are steps you can take to protect yourself and work toward resolving your credit card debt issues, even in the face of legal action.
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What to do when being sued over delinquent credit card debt
If you’re being sued over your credit card debt, it could help to take the following steps:
Verify the debt details
The first step when faced with a lawsuit over credit card debt is to ensure that the debt in question is yours and that the amount being claimed is accurate. To do this, request a debt validation from the creditor or collection agency. This should include details about the original creditor, the amount owed and when the debt was incurred.
You should also check the statute of limitations for credit card debt in your state. If the debt is older than this time limit, it may be considered “time-barred,” and the creditor may not have the legal right to sue you for payment. It also makes sense to review your own records and credit reports to cross-reference the information provided.
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Consider your options
You generally have three main options when sued for credit card debt:
Try to fight the lawsuit
If you have a strong defense or don’t believe you owe the money, you may choose to fight the case in court. If you want to take this route, it may be worth consulting with a consumer law attorney first. They can help you understand your rights, evaluate your options and potentially represent you in court if necessary.
An attorney can also help you identify any violations of consumer protection laws by the creditor or debt collector, which could strengthen your position or even lead to the case being dismissed. And they can help you file a written response with the court before the deadline specified in the summons.
Try to settle the debt
You can also try to negotiate a settlement with the creditor for less than the full amount owed. In this case, you may want to seriously consider enrolling in a credit card debt forgiveness program through a debt relief company to take advantage of what it can offer you.
When you enroll in a debt forgiveness program, the experts will try and negotiate with your creditors to settle the debt for less than the full amount owed, typically in return for a lump sum payment on the account. This can be an effective way to resolve your debt and avoid the courtroom, but it does come with risks, including potential damage to your credit score.
File for bankruptcy
In some cases, bankruptcy might be the best option to deal with overwhelming amounts of credit card debt. There are two types of bankruptcies to consider in this case:
- Chapter 7: Often called “liquidation bankruptcy,” it can eliminate most unsecured debts, including credit card debt.
- Chapter 13: Known as “reorganization bankruptcy,” it allows you to keep your assets while setting up a repayment plan over three to five years.
Once filed, creditors must cease all collection activities, including lawsuits — so by filing for bankruptcy, you may be able to halt the legal actions against you. However, filing for bankruptcy also comes with serious financial and credit repercussions, so it’s important to do your homework and consider all of the potential repercussions before doing so.
Prepare for the aftermath
Whether you decide to settle with your creditors or pursue the case in court, make sure you’re prepared for the impact the situation will have on your credit score. No matter the outcome, having delinquent credit card debt reflected on your credit report is damaging to your finances, so it’s important to start planning how you’ll rebuild moving forward.
The bottom line
Being sued over credit card debt is a serious matter, but it’s not the end of the world. By taking prompt, informed action, you can work toward resolving your debt issues and rebuilding your financial health. Whether it’s settling your debt, mounting a legal defense or filing for bankruptcy, there are options available to help you navigate this challenging situation and move toward a more stable financial future.
TRENTON, N.J. — Democratic Newark City Council President LaMonica McIver has defeated Republican small businessman Carmen Bucco in a contest in New Jersey’s 10th Congressional District that opened up because of the death of Rep. Donald Payne Jr. in April.
McIver will serve out the remainder of Payne’s term, which ends in January. She and Bucco will face a rematch on the November ballot for the full term.
McIver said in a statement Wednesday that she stands on the “shoulders of giants,” naming Payne as chief among them.
She cast ahead to the November election, saying the right to make reproductive health choices was on the ballot as well as whether the economy should benefit the wealthy or “hard working Americans.”
“I will fight because the purpose of politics and the purpose of our vote is to give the people of our communities and our nation a bold voice,” she said.
Bucco congratulated McIver on the victory in a statement but said he’s looking forward to the rematch in November.
“I am not going anywhere,” he said in an email. “We still have a second chance to make district 10 great again!”
Who are LaMonica McIver and Carmen Bucco?
McIver emerged as the Democratic candidate in a crowded field in the July special election. A member of the city council of New Jersey’s biggest city since 2018, she also worked for Montclair Public Schools as a personnel director and plans to focus on affordability, infrastructure, abortion rights and “protecting our democracy,” she told The Associated Press earlier this summer.
Bucco describes himself on his campaign website as a small-business owner influenced by his upbringing in the foster system. He lists support for law enforcement and ending corruption as top issues.
The 10th District lies in a heavily Democratic and majority-Black region of northern New Jersey. Republicans are outnumbered by more than 6 to 1.
It’s been a volatile year for Democrats in New Jersey, where the party dominates state government and the congressional delegation.
Among the developments were the conviction on federal bribery charges of U.S. Sen. Bob Menendez, who has denied the charges, and the demise of the so-called county party line — a system in which local political leaders give their preferred candidates favorable position on the primary ballot.
Democratic Rep. Andy Kim, who’s running for Menendez’s seat, and other Democrats brought a federal lawsuit challenging the practice as part of his campaign to oust Menendez, who has resigned since his conviction.
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Sean “Diddy” Combs at same Brooklyn detention center that held R. Kelly, Sam Bankman-Fried, other high-profile inmates
A second judge refused to grant bail to Sean “Diddy” Combs on Wednesday and he could remain in federal custody at a Brooklyn detention center until his trial for sex trafficking charges. Combs joins other high-profile inmates, such as singer R. Kelly, fallen cryptocurrency mogul Sam Bankman-Fried, rapper Ja Rule —even Al Sharpton served a brief stint— who were held at the same federal detention center.
Notorious for its horrible conditions —inmates won a $10 million class action settlement after enduring frigid conditions during an 8-day blackout in 2019— the waterfront industrial complex, MDC Brooklyn, houses 1,200 inmates.
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Violence and corruption have long plagued the facility; U.S. District Judge Gary R. Brown of the Eastern District of New York wrote the detention center had “dangerous, barbaric conditions” in a recent sentencing opinion. Two inmates were stabbed to death in recent months and several correction officers have been convicted for smuggling contraband and accepting bribes.
Combs joins a list of high-profile personalities that have landed at the MDC Brooklyn, partly because the city’s other federal detention center, MDC New York, closed in 2021, also due to horrible conditions. The disgraced financier Jeffrey Epstein died by suicide in his cell there in 2019. “Numerous and serious” instances of misconduct among corrections staff gave Epstein the opportunity to kill himself, a subsequent federal watchdog investigation found.
Kelly sued the federal detention center in 2022 for wrongly putting him on suicide watch after his sentencing. Kelly sought $100 million because he said the detention center knew he wasn’t suicidal after he was convicted in 2021 for racketeering and violating the Mann Act, which bars transporting people across state lines for prostitution.
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Former crypto billionaire Bankman-Fried survived on bread, water and sometimes peanut butter when he was in the MDC Brooklyn, his attorney said, because the detention center continued to serve him a “flesh diet” despite requests for vegan dishes.
Ja Rule stayed at the MDC Brooklyn for a brief time before being released after serving most of his two-year sentence for illegal gun possession. Most of his prison time was spent in a state prison in New York.
Sharpton served a 90-day sentence in 2001 and went on a hunger strike for protesting the U.S. Navy bombing of the island of Vieques, in Puerto Rico.
Combs was taken into custody on Monday and according to an indictment unsealed Tuesday he was charged with sex trafficking, racketeering conspiracy and transportation to engage in prostitution.
His attorney Marc Agnifilo told CBS News, “It’s impossible to prepare for a trial from where he is,” after a first federal judge denied Combs bail on Tuesday.
U.S. Magistrate Judge Robyn Tarnofsky agreed with prosecutors who argued the hip-hop mogul, who is accused of using his business empire as a criminal enterprise to conceal his alleged abuse of women, is a flight risk and poses an ongoing threat to the safety of the community.
Agnifilo said the part of the detention center where Combs is being held is “a very difficult place to be.”
contributed to this report.
