How do I respond to a lawsuit for unpaid credit card debt?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How do I respond to a lawsuit for unpaid credit card debt?
I have an unpaid debt of approximately $2800. I wasn’t able to pay it at first because of unemployment. Then dealing with an unexpected medical diagnosis for my mother (brain tumor) which created a stressful time during my pregnancy. I am currently receiving government aid for food to care for my child and receiving some money for caring for my mother through in-home support services but I need that to pay for a larger loan that has a lien on my vehicle which is my only means of transportation. What would the consequences be if I don’t respond and the court awards judgment to the plaintiff?
Asked on August 30, 2011 California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If you don't respond, then the plaintiff will win by default. That will give plaintiff a judgment in its favor for the full amount of the debt it claims. At that point, if you do not pay, it may be able to try some other means of recovering the money, which, however, you may still be exempt from. For example, many forms of public assistance cannot be garnished the way wage income can; it could try to put a lien on or execute against your vehicle, but if the car is financed, and therefore there is already a secured loan on the car, it is not likely to get the credit card creditor anything--the secured debt will take priority. If you have nothing at all, it is hard to collect from you. You still may wish to at least contact the creditor and see if maybe you could settle the debt for some reduced amount that you could pay (if there is any such amount), so as to not have a judgment against you--the judgment will remain in effect for year, so if at any time you become implied, come into money or property, etc., the creditor could then try to collect.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.