If I am indebted to a credit card company, what happens if I can’t pay it and I can’t appear in court?

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If I am indebted to a credit card company, what happens if I can’t pay it and I can’t appear in court?

Do they have the right to take away my house and car? 2 months ago, I transferred my car name to my son’s name; is that fraud. However, it was my son who been make a monthly payment until he just paid it off 2 months ago. I owe $5,000.

Asked on October 6, 2011 under Bankruptcy Law, Georgia


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you owe an obligation to a credit card company that you do not contest, the best way to resolve the dispute is to contact the company and enter into a written agreement for payment of the amount owed and agree to make monthly installment payments that you can afford. If this can be done, make sure that the agreement is signed and dated by you and a representative for the credit card company.

If you are sued by the credit card company for the debt and do not appear in court, then you will lose by default and have a judgment entered against you which the credit card company will most likely try to collect upon.

In most states there are homestead exemptions as to one's home where a judgment creditor typically cannot take away a person's home to collect on a judgment. Most states hols that a person's automobile is exempt from levy to satisfy a judgment.

As far as the transfer of your car into your son's name, if that was done to hide assets from possible creditors, and if your state has laws against fraudulent conveyance of assets to defraud creditors, the transfer of the car may have been improper from a civil standpoint.

I suggest that you consult with an attorney who is experienced in debt collection practices.

Good luck.

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