Under no circumstances, ignore the lawsuit. The credit card companies and the debt buying companies count on you to do this so they can get a lien against your property. Most of these cases are winnable, even if you owe the debt, because the credit card companies and, especially, the debt buyers, seem to have a lot of problems proving their case due to a lack of the proper documentary evidence required under the law.
If you are being sued, you should do the following:
FIRST AND MOST IMPORTANTLY - READ THE LAWSUIT VERY CAREFULLY. If there are any untruths in that Complaint, you must file the appropriate response. Pay particular attention to the numbers to see if they are consistent and to the documents. You will rarely find that the original contract or assignment documents, if any, are attached to the Complaint.
Request a validation of the debt from the creditor who is suing you. They must provide you with a written, signed statement of the verification of the debt by mail.
Although you can contact the creditor who is bringing the lawsuit against you and try to negotiate a payment plan, very often the creditor will try and take advantage of you and bully you into a bad deal. Be Careful!
Always correspond by using certified return receipt U.S. Mail. Always get a name of who you were speaking with. Keep track of your discussions with them, such as dates and times.
If you are in the financial position to pay off the debt completely, you can do that but make sure that the creditor's numbers are correct and that they provide written proof that the debt is satisfied in full.
You could file bankruptcy which would halt the lawsuit, but might not be the best strategy for your overall financial well-being.
Check the statute of limitations to confirm that the time period of when the creditor can sue you hasn't passed. This is the time period allowed that a creditor can bring suit against you. The time begins after failure to make your last payment. The length of time depends upon what state you reside in. If the time period has lapsed you can request that the lawsuit be dismissed by the Court.
The above tips will guide you and are for educational purposes only and are not intended to be relied upon by you. The only way you can be sure to mount a great defense is through representation by a credit card debt lawyer who defends these types of cases on a consistent basis. That is what I do. Call my office immediately: 610-293-9399 or view my website www.mforbeslaw.com