Have you been sued for credit card debt? Have you consulted an experienced debt settlement attorney?
If you haven’t paid your credit card bills in several months you may be facing a lawsuit from either a credit card a company or a collection agency. If you default on credit card payments it is a breach of the agreement you entered into when you obtained the credit card, which gives the creditor the right to file a lawsuit against you. Most credit card companies sell their debt to third party debt collectors or collection agencies, who then possess the same rights as the original credit card company.
If the debt collectors are unable to recover or settle the debt, an attorney is normally hired to file a lawsuit in state court. Upon service of the summons and complaint, you are given 20 days (30 days if out of state) to file a response. Consequently, it’s important to consult an experienced debt settlement lawyer as early in the process as possible. If you fail to defend a lawsuit the creditor will be awarded a judgment against you based upon the amount alleged in the complaint.
Most of the time you are “personally served” or hand delivered the complaint by a process server. However, a creditor may request alternative service after a period of time and can provide notice of the lawsuit by mailing the complaint to your last known address or by other means of service. As a result, it’s possible to have a judgment against you without having knowledge of the lawsuit.
What Happens if a Credit Card Company is Awarded a Judgment Against Me?
Credit card companies normally collect upon the judgment in one of three ways. First, if you meet the minimum wage requirements a creditor may garnish up to 25% of your gross wages. A second way a creditor may collect upon a debt is by levying your bank accounts. A third method of collecting upon a judgment is putting a lien on your non-exempt property. For example, a creditor may put a lien on your boat or your second home.