If youâ€™re in over your head with debt and you start having thoughts that youâ€™d be better of just not paying you really should think again and reconsider. The fact is, the damage that it can do to your credit rating and the risk of being sued are high and the consequences long-lasting.
Better to weigh your options and consider some other solutions that will allow you to pay off the debt over a longer period of time or reduce the amount you owe but pay it off.Â If itâ€™s already too late for any of those options we have a few below that can help you to possibly beat a lawsuit that has already been filed and possibly save you thousands of dollars in court costs.
The first is to request a validation of your debt from the credit card company that has brought the lawsuit against you. When you do this said credit card company is forced to send you a verified statement of the debt by mail.Â This also stops any collection efforts and will fend off the lawsuit at least for a short time.
Contacting the credit card company directly and trying to negotiate a way to stop the lawsuit and pay off the debt may seem like a crazy idea but actually most credit card and other credit companies would rather do this than waste their money and time in court. Many are more than willing to do this but make sure that you communicate with certified mail so that you can legally prove what you have done should the need arise.
Many states have a statute of limitations for lawsuits that may or may not be expired in your particular case. This means that, if the time has passed that allows them to sue you a request that the lawsuit be dropped should get it dismissed in court.
Finally, if youâ€™re out of options filing for bankruptcy may be your only option, especially if you have unsecured debt owed to several credit companies and donâ€™t have the means to defend yourself in court financially.Â Chapter 7 bankruptcies can help you dissolve nonsecure debt or payoff secured debt by liquidating assets while Chapter 13 will get you a court approved payment plan that, in effect, will give you the extra time that you need to pay off your debt without the risk of a lawsuit.