Woman sorting out credit card debt on computer

Can Your Credit Card Company Sue You for Unpaid Bills?

By Derek Prosser

The cost of living isn’t cheap. It’s very easy to find yourself inundated with credit card bills that you can’t seem to pay. Even more interest and penalties end up added to your balance and you find yourself in a really difficult situation. As a result, you may be served with a lawsuit by your credit card company. But while this can be an extremely scary and overwhelming situation, it’s important that you understand all of your options and what to expect next. 

What You Should Know

The most important thing to first understand is that you cannot be put in jail for failing to pay your debt. When someone files a lawsuit against another party, it is a civil process. The lawsuit will be served to you by a sheriff or constable and you will receive a copy of the lawsuit. This way, you can’t claim that you weren’t aware of it. The confusing aspect of being sued by your credit card company is that you likely do owe money, and you likely still can’t afford to pay it – which is why you owe it in the first place.

Responding to the Lawsuit

When you owe a debt and have no defense, your best option may be to file for bankruptcy, which will stop all of the collection lawsuits against you and will have them discharged. Additionally, if you file for bankruptcy, it can stop a pending lawsuit or even allow you to be discharged from debt even after a judgment was entered. 


Rebuilding Your Credit 

If a creditor has filed a lawsuit against you to collect money that you owe, it’s likely that it has also negatively impacted your credit report. One of the bigger issues is that even if you settle with your creditor, those negative reports will not automatically be corrected. However, if you file for bankruptcy and your debts are discharged, each of the credit bureaus will report the discharge event. Once this is granted, you will be able to begin building your credit back up to a healthy place once again. A knowledgeable and experienced attorney can help to send the proper documents to your credit reporting agencies and will do their best to protect your financial interests. 


Toronjo & Prosser Law Helps Those Who Are Dealing with Bankruptcy 

Filing for bankruptcy is a big decision that can have a long-lasting impact on many different aspects of your life. It is a decision that should never be taken lightly, and one that should be your choice – not someone else’s – whenever possible. That’s why it’s so important to consult with a knowledgeable and experienced Dallas bankruptcy attorney who can help you to defend against your creditors. Additionally, if any creditors are currently harassing you, an attorney can also help. At Toronjo & Prosser, our qualified Texas Bankruptcy Attorneys can help you to navigate the process. To learn more or to schedule a free consultation contact us online or call us today!

About the Author
Derek Prosser understands that clients need help and need answers and that in order to properly address those concerns, clients need to deal with an attorney first and always, not just an assistant or paralegal.  By effectively counseling from the outset of a case, Toronjo & Prosser Law can anticipate and address potential problems before they arise, as opposed to when they’ve already surfaced (the “Counsel Later” approach), and, in the end, strive for a seamless representation.