What options do I have if I am being sued for a credit card debt?

I owe $9000 on a credit card and now I’m being sued. I don’t make the money I once did and now I’m just able to pay the bills I currently have. The court order states that if they don’t hear from me or my attorney a default judgment may be taken and I will have to pay attorney fees and court cost. What I can do?

Asked on March 29, 2011 under Bankruptcy Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

First, if you dispute the debt--either entirely or its amount--you could fight the matter:  marshall your proof of your version, and force the creditor to prove what you owe. If however you agree this is a correct and lawful debt, it may not be worth fighting.

Second, you can try to negotiate a settlement and probably should--you lose nothing by trying.

Third, if you try to settle and fail, try to fight and fail, or indeed at any point, you could file for bankruptcy as a way to discharge this debt. While bankruptcy is a drastic alternative, if you truly can't pay your debts, it is something to discuss with a bankruptyc attorney and consider strongly.


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