Debt-related Lawsuits On The Rise In California

In order to cope with the high rate of delinquent payments, thousands of California residents are being sued by credit card lenders and third-party debt collectors.

In many cases, those under fire come from middle-class backgrounds and have been suffering from prolonged unemployment, foreclosure or other ramifications of the recent economic downturn.

Certain areas of California have seen so many of these cases that they now comprise 40 percent of all civil cases in local courts, The Santa Cruz Sentinel reports. Chase bank filed 330 collections lawsuits in 2010, up nearly 200 cases from 2007's figures. Citibank also increased the number of cases that it filed in the state from 50 to 350 during this time.

In addition, this adds an extra burden to many consumers, who may be unable to afford the legal services that fighting the litigation requires. However, many of the cases have been thrown out, as third-party debt buyers are often unable to produce proof that they own the disputed credit card contracts, the news source says.

Those who receive a court summons for the case have up to 30 days to file an answer in courts. Also, these individuals could benefit by seeking non-profit debt relief and other free services.