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Written by Canterbury Law Group

What to Do When You are Being Sued for Arizona Credit Card Debt

If a credit card owner has incurred considerable amounts of unpaid bills, the bank or the card agency has the right to sue the cardholder also known as the ‘debtor’. If you are being sued for credit card debt in Arizona, you will first be served a “summons” for a state or federal court case. When you receive the initial notification for summons, the important thing is not to panic. Credit card debt lawsuits go through several phases and there are plenty of ways you can defend yourself effectively with the right attorney. Breathe deeply and relax.

Immediate Action Following Summons

When you have received a summons to court over a credit card debt lawsuit, don’t delay taking action. Most of all, do not ignore the summons. If you do, the suing party (the bank most likely) can obtain a judgment against you in your absence. By ignoring the case, you will not be able to argue your case in front of a judge. The judgment against you could allow the creditor to infiltrate your wages or savings to use as payment towards the credit card debt. Therefore, don’t wait to respond to the summons.  Even if you owe all of the money, you should respond in writing to the court.

If you were served the summons within the state of Arizona, you will be given 20 days to respond. If the summons were served when you were out of state, then you get 30 days to respond. Hire a bankruptcy attorney in Scottsdale during this time to file your case without missing the deadline.

How to Respond to Summons

Once you have an attorney, he or she will guide you through the process of responding to the summons appropriately. There’s a misunderstanding that responding to the summons means showing up in court on the given date. In fact, Arizona law requires defendants in debt cases to file a written response. You must write to the court before the deadline to avoid a default judgment as described above.

How Long will the Case Go On?

This depends on where the lawsuit is filed. In Arizona, there are two types of courts that handle debt-related lawsuits: the Justice Court and the Superior Court. Lawsuits for disputed amounts less than $10,000 go to the Justice Court while anything more than this will be taken to the Superior Court.

Justice Court is a small claims court where the lawsuits tend to move faster. Due to this reason, some creditors file lawsuits stating a limit of $10,000 but without including the interest and other costs. Lawsuits filed in the Superior Court can be complex so trials take longer to conclude. It’s worthwhile to check whether the creditor has filed the case in the right court as part of your defense strategy.

Formulating the Defense Strategy

There are several ways an experienced defense attorney can approach a debt collection lawsuit. Even if the case goes to trial, your lawyer can negotiate with the creditor for a debt settlement. The settlement may involve trying to reduce the total amount owed. If the debt is overwhelming, you might have to file for Chapter 7 bankruptcy, in which case a court may discharge credit card debt. This is not the ideal scenario for a creditor, so the settlement is always an option.

A skilled attorney would also consider more technical aspects of the lawsuit that may offer you relief. For example, an attorney may check whether the summons for the trial was properly served. Other aspects, such as double-checking documentation the creditor provides, will be part of the defense strategy aimed at getting you the best outcome.

Debt, Debt buyers, Debt Collection Companies, debt collectors
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Regular Post
Written by Canterbury Law Group

How to Handle Debt and Other Financial Problems in 2018

A brand new year is here, bringing with it exciting new possibilities. Some possibilities in 2018, however, will not be exciting for some Arizona households. According to a recent study published by TransUnion, a credit reporting agency, consumer credit card debt will increase this year for the fifth consecutive time. Earlier this year, the amount of credit card debt American households owned reached a whopping $1 trillion. By next year, market research shows that many households would significantly struggle to pay off that debt.

Despite a strong economy, American households continue to amass debt. Credit cards are not the only culprit. A significant number of households are indebted due to unsecured loans like payday loans. This is in addition to typical loans like a home mortgage and student loans. While 2018 may be a good year in economic terms, it will also be a year many Arizonian households and individuals grapple with debt. Here are several debt management tips to keep in mind:

Avoid Taking on New Debt

Remember that any money you borrowed for the holidays will have to be paid off this year. If you are already in debt, it’s not a good idea to take on even more debt. Use your income or savings for holiday activities like parties and vacations and avoid borrowing more money overall. Control your spending habits right now to start reducing your debt gradually this year.

Talk to a Lawyer Regarding a Debt Relief Strategy

If the debts have piled up high already, the creditor may start suing you next year. Therefore, consult with a bankruptcy lawyer in Scottsdale to formulate a strategy to get rid of at least some of that debt. You can consider filing for bankruptcy if you find yourself literally unable to make payments. Chapter 7 bankruptcy allows judges to discharge certain forms of unsecured debt, like credit card debt and payday loans. Ask a lawyer whether filing for bankruptcy would make financial sense in the coming year.

Negotiate with Creditors

If there are creditors calling, demanding that you pay back a loan, there are several options you can consider here. First, if the creditor is abusive and is subjecting you to harassment, you could consider taking legal action against creditor harassment. If the creditor’s communication tactics are legitimate, you can try negotiating. Creditors prefer to have their loans paid back at least partially than to have a bankruptcy court discharge the debt. Therefore, if you are unable to meet due payments, try to negotiate the interest rate or request an extension. Your lawyer may be able to assist.

Last but not least, save for emergencies. The start of the year is a great time to open a new savings account. When you have money saved for tough times, it will eliminate the need to take on personal loans or use expensive credit cards.

Abusive Creditor in Arizona, Debt, Debt buyers, Debt Collection Companies
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Written by Canterbury Law Group

How to Deal with Debt Collection Companies

Most Arizonians don’t know what to do when a debt collection company calls. The law does allow creditors or collection companies to call debtors and attempt to retrieve money owned. However, there are state and federal laws regarding which practices are allowed and which are explicitly prohibited. The Fair Debt Collection Practices Act and the Telephone Consumer Protection Act both stipulate what some attorney’s call “debtor’s rights.” When a collection company calls you, it’s important to know what rights you have against creditor abuse and malpractice.

When a Collector Calls

When a collection company calls you, they cannot demand that you pay the debt without informing you of several fundamental things. After the first call, the collection company has five days to inform you of the amount of debt that you owe and the name of the creditor to whom you owe the debt. If a collection company calls you demanding “payment” without specifying either of these, you have a fair case you can make against the collection company. You should contact a bankruptcy lawyer in Scottsdale if a collection company keeps calling without specifying the debt.

You can Contest the Debt

Most debtors are unaware that they can call into question the validity of a debt. Once a collection company calls you notifying you of a debt, you have 30 days to dispute the debt. If you doubt the validity of the debt, you can make a statement disputing the collection company’s claim. Once you have written to the creditor or the collection company, the parties should issue a statement in return verifying the debt in another 30 days. If you don’t get this verification statement after you issue a dispute, then the debt is very likely invalid.

When Creditors Don’t Match

Sometimes creditors sell debt. So some of your debt could be owned by a different creditor than the original person or entity you borrowed from. If the current creditor is different, then the collection agency must issue a statement with the name and address of the original creditor. If you don’t recognize the creditor of a debt, you must issue a statement and have the collecting agency specify the creditor’s identity. It’s important to note that the collection company cannot call you or try to retrieve a debt before notifying you who the original creditor is. You must get the verification as a written statement too.

Don’t Let Them Verbally Advise You

Some collection agencies may try to verbally tell you who the original creditor is, what amount of debt is owed, and other such factors. This is an attempt by collection companies to avoid issuing written statements. Documents can be upheld in court. If you get a verbal statement, the collection company can always change the story if the case goes to trial. Therefore, you must have physical statements mailed to you. Debtors have the legal right to such.

Collection companies that don’t adhere to the rules can be taken to court. In some cases, your debt may be waived and the court may demand the collection company to pay your attorney’s fees as well.

Debt, Debt buyers, Debt Collection Companies, debt collectors, Scottsdale Attorneys, Scottsdale Legal Help
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