Would should i expect going into court for credit card debt?
I am young, and don’t own any property, and have no bills besides a cell phone. I made the mistake of maxing out a credit card when I was 18, and have been referred to a law office by a debt collector. Does this mean I will be going to court? is there anything I can do to avoid going? What should I expect if i go? or don’t go? What are the chances of settling it with the law office before the court date gets set? Any information on the topic would be greatly appreciated.
*** posted: 21 Apr at 5:49 am
Do something before you go to court…..you will end up having your wages garnished and that will be no fun at all!
mikrp posted: 21 Apr at 6:27 am
depending on the size of the debt the original creditor will decide if its worth their time trying to recover the debt, they sell most of these to collection firms for cents on the dollar if you are able to make even small payments even $5.00 send them a payment and a letter explaining why you are unable to make full payments…if you maintain contact with them they will have a hard time getting a judge to issue a judgement on you, ignoreing them will let them tell the court that you are not responding and you will most likely lose, also most company will offer to settle a debt for a reduced amount sometimes as low as 30% of the amount owed. if you accept one of these settlements though be sure you get a letter from them saying the debt is settled in full prior to giving them any money. they lie all the time
Dan B posted: 21 Apr at 6:35 am
How old is the debt. If it is beyond the statute of limitations in your state, you can claim the debt is time barred from collection. Otherwise, they will probably win a judgment and demand an arrangement for payment. If you don’t go to court, the WILL win a judgment and demand payment arrangements – garnish your wages.
Sgt Big Red posted: 21 Apr at 7:19 am
Your best bet is to work out a payment plan with the law firm before it is too late. You should however check to see if this debt is time barred in your state. Use the following link to find your states statute of limitation on credit card debt
http://www.bcsalliance.com/statute_of_limitations_on_debt.html
If they summons you to court and you do not show up, they win by default and could get a “writ of garnishment” against you.
Unless you live in North Carolina, Pennsylvania, South Carolina or Texas where garnishment is not allowed, then your states statutes would determine how much could be garnished. Most states follow federal guidelines which is 25% of you adjusted gross income (income after taxes, cost of living like rent or mortgage payments).
You do NOT want a judgment to appear on your credit report as this will damage your credit rating and will stay on your report until satisfaction of the judgment is entered.
Hope this helps answer your question