Many consumers who use or have used credit cards usually believe that they will be able to pay off their debt. Due to unforeseen circumstances, however, some end up paying only the monthly minimum or nothing at all. In situations where the consumer is unable to pay, the credit card company may commence legal action to recover the past due debt. However, there is hope for California individuals to ease their situation by either resolving their debt or filing for personal bankruptcy protection.

In many situations, credit card companies are unrelenting when it comes to debtors meeting their obligations. Some terrified consumers that receive a letter about a lawsuit usually file it away and pretend it doesn’t exist. The truth of the matter is that it does exist, and if avoided, the creditor ultimately may be able to garnish wages and restrain bank accounts that are in the debtor’ name. Nevertheless, there are ways to prevent this from occurring.

One of the first things to do is to try to resolve the debt as soon as possible. If the consumer does not have any cash on hand, borrowing money from a family member or close friend may be an option. If the funds are secured, it’s a good idea to get the resolution with the creditor in writing as the lawsuit may end up being dismissed. If the consumer is unable to obtain the funds, bankruptcy protection may be the most responsible option.

While resolving debt can help save a consumer from a potential lawsuit, there are consumers who are simply unable to pay due to circumstances beyond their control. There are times when a person’s debt is simply too much to handle. Usually, filing personal bankruptcy in California offers a good solution and can lead to discharge of credit card obligations and other unmanageable financial obligations.

Source: abclocal.go.com, “How to React If Your Credit Card Company Sues You,” Gerri Detweiler, Aug. 3, 2013