Is bankruptcy a solution for a credit card lawsuit?

In most instances a bank or credit card company files a lawsuit only after all other collection efforts have been unsuccessful.  Regardless of the reason a debtor has failed to pay a credit card debt, the bottom line is that the bank wants its money and will file a lawsuit in an effort to get it.  If you are being sued by a credit card company, the biggest mistake you can make is ignoring it.  Although the banks and credit card companies want you to believe that you don’t have a leg to stand on, you do have options.  

One option is to file an answer to the lawsuit and fight the bank.  Another option is to file bankruptcy.  When you file bankruptcy, the automatic stay becomes effective.  The automatic stay prevents the bank from proceeding with the lawsuit.  If you file a Chapter 7 case, there is a really good chance that all of your credit card debts will be wiped out.  If you file a Chapter 13 case, it’s quite possible that you will pay little or nothing on your credit card debts.  Additionally, if a credit card company has already obtained a judgment against you, filing bankruptcy will stop the bank from garnishing your wages or levying on your property. 

If you have been or are currently being sued for a credit card debt, you should speak with a bankruptcy attorney to explore your options.  A bankruptcy attorney will advise you of whether bankruptcy is the best option for dealing with the lawsuit as well as your other debts.