Common Credit Card Debt Issues

• Sued for Time-Barred Debt
  Credit card debt has a 2-year statute of limitations. However, creditors often sue for expired debts. If the defendant does not contest this in court, the court will rule in favor of the creditor.
• Unfair Interest and Penalties
  Being charged default interest rates or collection fees that exceed legal limits.
• Illegal Debt Collection Practices
  Creditors or collection agencies engaging in harassment, public shaming, or collecting debts at inappropriate times, violating the Debt Collection Act.
• Salary Garnishment or Asset Seizure
  Debtors who fail to comply with a court judgment may face salary garnishment or have their assets (homes, cars) seized by the Legal Execution Department.

Legal Solutions and Services

Ignoring a court summons for credit card debt is the worst approach. Going to court with legal representation opens up effective ways to resolve your debt:

• 1.Statute of Limitations and Debt Verification
  Lawyers will verify the date of the last payment. If the statute of limitations has expired, we will draft a defense to have the case dismissed, legally releasing the debtor from the obligation.
• 2.Debt Negotiation and Haircut
  If the debt is still valid, a lawyer can negotiate with the plaintiff's attorney to reduce the principal, lower interest rates, waive penalties (debt haircut), or arrange manageable installment plans.
• 3.Court Settlement Agreements
  Reviewing and advising on compromise agreements in court to ensure the repayment terms are fair and realistic for the debtor.
• 4.Handling Garnishment and Execution
  If the case reaches the execution stage, lawyers can file petitions to reduce salary garnishment (if the debtor has dependents) or negotiate to halt public auctions of seized assets.
• 5.Addressing Illegal Debt Collection
  Providing counsel and taking legal action against collection agencies that violate privacy rights under the Debt Collection Act.