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One of the greatest fears people have when they are considering credit card debt resolving is being sued by a creditor. The question is often asked, “What are the chances of them suing me while I’m attempting to work out a credit card debt settlement?” To realize the answer you must first understand the process of credit card debt collection litigation.

Ever known about it before? Threatening debtors with credit card lawsuit, wage garnishments and arrests have been a main way in the debt collector’s arsenal for years. If you are trying to pay a credit card debt settlement, you need to learn the facts about being sued for unsecured credit. Note, I noticed unsecured debt; secured debt is a whole other subject.

Credit card lawsuit defense is really the way to go as opposed to bankruptcy but it does suggest several potential challenges you won’t experience with bankruptcy. With debt settlement, creditors are not required by law to cease in their attempts to gather. That being said, here are the normal steps debt collection agency has to go through in getting ready to sue a debtor.

Step #1 – Assets Investigation: A typical investigation can include the following: skip tracing, confirmation of employment income, liens, judgments and bankruptcies, professional licenses, real property, automobiles, bank accounts, water vessels and aircrafts. It will also include personal information confirmation like: date of birth, social security number, social security number fraud check, address history, divorce records, name of spouse and children and child support payments.

Step #2 – Employ a Lawyer: As you realize, employing a lawyer is expensive no matter what the issue is. A creditor can expect to pay anywhere from $150.00 per hour for a lawyer straight out of law school and $225.00 and upward for an experienced lawyer. We’ve only been through two steps and already you can see why credit card debt settlement is more appropriate way than a lawsuit.

Step #3 – File The Case In Court: When the lawyer accepts the case, they will be demanded to pay the upfront legal costs like the filing fees, court costs, etc. Such fees can range anywhere from depending on the jurisdiction of the lawsuit.

In any of these scenarios, the creditor will be faced with a mounting legal bill they may exceed what they may or may not have recovered. Clearly, if the income is not there – or there looks like a gray area on their capability to collect, it would be to their advantage to work out a credit card debt settlement.