When you’ve been sued by a creditor to recover amounts due for your credit card debt, you probably have dozens of questions regarding your rights. You might have heard that these types of cases may be settled before trial, so some specifics on credit card debt settlement should be helpful in understanding the proceedings. It’s important to discuss your case with a credit card lawsuit attorney in San Diego, but here are the answers to some common questions.

Credit Card Collection Lawsuit Questions

What is credit card collection settlement? A settlement of your lawsuit is basically an agreement that you enter into with the plaintiff/creditor: You agree to pay a certain amount under terms that you’ll negotiate with the creditor. In most cases, this amount will be cents on the dollar with respect to the total amount you owe. In exchange for the lump sum payment, or series of installments, the creditor will agree to dismiss the lawsuit against you and the case will be ended.


How does the settlement process work? The first notice you receive about the lawsuit will be the Summons and Complaint, which contains the details of the plaintiff’s claims and the contact information for the attorney representing the plaintiff. This is the person you should approach with a proposal to settle the case. Usually, the attorney will be open to settlement because ending the case reduces the fees that the plaintiff would otherwise pay to pursue the matter against you. You should request that the plaintiff’s attorney make the first offer, which you can then counteroffer. Make sure the payment terms are reasonable and affordable for you, because failing to comply with the settlement agreement could result in further litigation.


Will a settlement impact my credit rating? The settlement may still be reflected upon your credit report unless you negotiate to have your creditor file the settlement with the credit reporting agencies. The court case doesn’t automatically disappear from your credit history unless the creditor takes action. Your credit rating may drop due to the settlement, as not paying your debt in full is considered negative history. However, your score is impacted less than letting the debt remain on your report or filing bankruptcy.


Do I need a credit card lawsuit attorney in San Diego? It’s wise to consider hiring a credit card lawsuit lawyer if you’ve been sued by a creditor, especially if you want to negotiate a settlement. You can see that settling your credit card lawsuit can be complex, so having a legal professional on your side is critical to ensure that your rights and interests are protected.

San Diego Credit Card Lawsuit Defense Lawyer

Attorneys have extensive knowledge of the consumer protection laws and procedural matters that apply to your case. In addition, debt collection lawyers know the relevant deadlines for filing in court and for preparing necessary documents. They have experience in dealing with aggressive creditors, giving you an advantage when it comes to discussing settlement options. Contact a San Diego credit card lawsuit defense lawyer with any questions or to talk about your case in further detail.

Daniel R. Gamez, an attorney focusing exclusively in debt settlement, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in La Jolla, CA. For more information, please contact Daniel Gamez at 858-217-5051, daniel@gamezlawfirm.com or visit gamezlawfirm.com.