Is a debt collector suing you over credit card debt?
If a debt collector is suing you over an old credit card bill, you are probably wondering what to do. When a credit card company is unable to collect money from you over a period of time, they often sell your debt for pennies on the dollar to a debt collection company.
Often times the debt collector will sue you and can do so if it is within the four (4) year statute of limitations in Pennsylvania.
The first rule of thumb when receiving a lawsuit over an old credit card debt:
DON’T IGNORE IT! This is the worst thing you can do. If you ignore the lawsuit, the Court will enter a judgment against you. The judgment can remain on your credit report for up to seven (7) years. The collector can execute on the judgment and possibly freeze your bank account.
WHAT TO DO! After being served with the lawsuit, you only have twenty (20) days to file a written response. Contact an attorney immediately! The debt collector is hoping you ignore the lawsuit so it can get a default judgment. Don’t let this happen.