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Dealing with legal action by credit card companies

If a Florida resident gets too far behind on a credit card debt, it may be possible for the credit card company to initiate a lawsuit. However, this does not necessarily mean that a legal battle is on the horizon. In some cases, it may be possible to settle the matter with good faith negotiation.

It is also important to verify that a debt is valid before agreeing to pay some or all of it. This is because paying even a portion of a debt may restart the statute of limitations clock. Most states have a time limit of three years to take action, and suits filed after that statute of limitations expires are generally considered invalid. If an individual does owe a debt, it may be possible to have some portion of it forgiven in an effort to avoid a lawsuit.

As a general rule, lawsuits are expensive for both debtors and creditors alike. A creditor would rather have some of its money and avoid court costs than collect the whole balance and spend time and money in the legal system. In some cases a debt can be settled for a relatively small fraction of the original balance owed. Debtors may negotiate on their own or ask an lawyer to do so on their behalf.

People who are seeking debt relief may find it by filing for Chapter 13 bankruptcy. Otherwise known as a wage-earner plan, it allows debtors to reorganize their debts over a three or five year period. During this period, secured creditors are generally unable to proceed with a repossession or a foreclosure. They may also be unable to proceed with wage garnishment or other collection actions. An lawyer can describe the process in more detail.

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