Credit News Series #5 – Increase in Lawsuits on Bad Debts
Increase in Lawsuits on Bad Debts
There is no question that credit card companies are using vast numbers of people who failed to pay and defaulted on their credit cards.
In my 17 years helping people with their debts I cannot recall such a high percentage of my clients being sued as over the past year or two. Lawsuits have been filed over as little as $900 of debt!
The most important for you to know if you defaulted on a debt and get served a lawsuit: DON’T pretend it didn’t happen. You can have a lot of agonies if you do not face the problem.
You MUST answer the lawsuit, each state gives how many days you have to file your answer to the lawsuit.
Failure to answer a lawsuit will only give the other side an easy time getting a judgment against you.It is called a default judgment.
With a judgment, your wages can be garnished (money taken from your paychecks) or money can be taken from your bank account. If you own real estate then a lien can be placed on the property.
If you cannot afford a debt defense lawyer to answer the lawsuit then look for a paralegal with the correct experience to write an answer for you to file with the court in time. Paralegals should be overseen by a lawyer.