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 a 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. a lawyer can describe the process in more detail.