Most Americans have at least one credit card. It can sometimes be easy to run up a credit card balance, and end up with monthly payments that are just not feasible to pay. If this happens, and if the holder of the credit card fails to make payments, then the credit card holder can go into default.
When a credit card holder goes into default, credit card companies will often institute a legal action to try and recover the money owed. Every credit card company has a different policy regarding how long they will wait for payment before filing a legal action against you. Sometimes credit card companies will attempt to settle the debt prior to filing a lawsuit; however, some credit card companies are very aggressive, and will file a lawsuit against the credit card holder very quickly for unpaid credit card debt.
If you have found yourself being sued for a credit card debt, you do not want to ignore it. By ignoring the lawsuit and failing to file a legal answer you could find yourself at the wrong end of a default judgment. In a default judgment, the creditor wins against you automatically, simply due to your failure to respond and defend yourself. If a creditor has the judgment against you, the creditor might even have the power to collect or seize real property and personal property belonging to you.
If you are not disputing that you owe the credit card debt, often times the best approach to these cases is to pursue a settlement of the debt outside of court directly with the creditor or the creditor’s attorney. Before making any settlement, though, you will want to verify the debt is valid. The statute of limitations for most credit card debt in North Carolina is three years from the date of your last payment. If you are disputing the debt, however, it is best to consult with an attorney.
If you are being pursued for a credit card debt and would like legal assistance, please feel free to contact Kreger Law Firm to schedule a consultation.