You have found yourself in a position where you are unable to make your payments on your credit cards and now the companies are filing suit against you in court to recoup what is owed. Are they allowed to do this and what defense do you have?
First of all, credit card debt is considered unsecured debt. What this means is that the debt you have accrued is not collateralized by a house or automobile or any other object that the company could seize and sell to pay off the debt. This does not mean they have no recourse. Credit card companies are able to sue you in order to get their money back. The laws vary from state to state as to whether they are able to get a judgment to garnish wages in order to do this.
The first thing a consumer should do is to respond to the complaint. If you just ignore the legal threats you may face a default judgment which means the courts will rule against you without you having the opportunity to defend yourself or find a suitable compromise or repayment plan. Another factor to consider is whether or not the company even has the right to sue. If the debt has been sold to a collection agency they in fact may not have the proper legal standing to sue you at all. They have to prove that they have the proper “standing” to further their lawsuit and that it is within the statute of limitations.
The bottom line is to do your homework and determine your standing and full legal rights. Contact a qualified Dayton bankruptcy lawyer to fully apprise you of your legal rights.