Can a debt relief company help after you’ve been sued for unpaid debt?

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September 16, 2026 / 10:21 AM EDT / CBS News

Falling behind on a credit card or another unsecured debt can be stressful enough when you're fielding collection calls and watching late fees add to what you owe. Once collection efforts escalate, though, and a creditor or debt collector files a lawsuit, the problem takes on a different level of urgency. Rather than simply deciding how to handle the unpaid balance, you're now facing issues with court deadlines, legal fees and the possibility of a judgment being issued against you.

And plenty of borrowers are navigating serious high-rate debt problems right now. Credit card balances climbed by $21 billion during the second quarter of 2026, reaching a total of $1.26 trillion, according to the latest data, while 4.7% of outstanding household debt was in some stage of delinquency. Those figures underscore how difficult it remains for many borrowers to keep up with their monthly obligations in today's tough economic landscape.

If your unpaid debt has already resulted in a lawsuit, though, you may be wondering whether it's too late to…

Original source: https://www.cbsnews.com/moneywatch/