Credit Card Lawsuits and Judgments

Getting served a Summons and Complaint can be shocking for most people.  It usually threatens the Defendant with suing for a certain amount on a credit card.  If the Defendant doesn’t show up on the court date, the court will enter a default judgment if the Plaintiff’s attorney appears.  Filing for bankruptcy may be a good idea if you have a pile of lawsuits laying around.  If you earn an income, these Plaintiff creditors may try to garnish your wages or even levy bank accounts after receiving a default judgment.  Filing for bankruptcy prevents credit card creditors and their assignees from further attempting to collect on the debt, even if the lawsuit has been already filed.  This “automatic stay” is a powerful weapon when filing for bankruptcy and when the credit card debts and lawsuits are discharged, the debtor start fresh.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s