What do I do if I am being sued by a credit card company?

Once a creditor obtains a judgment, they can use various collection methods to execute that judgment, including selling your real and personal property. The debt also accrues interest while it remains unpaid. If you filed for bankruptcy protection, the debts would be discharged.

If you do not show up they will obtain a default judgment against you and can freeze your bank accounts (i.e., all bank accounts with your name on it included joint accounts). If you have other debt and have no income, you might also want to consider filing bankruptcy to get a clean start.

If you do not reply to the lawsuit creditor will get a default judgment. Then creditor will try to garnish your bank account, garnish your wages, put a lien on your home, or all three. It sounds as though you are what we call "judgment proof." That means there is nothing to garnish. However, if creditor gets default judgment and sends you interrogatories you must respond or risk judge holding you in contempt. That is not good. You might be fined or be ordered into custody (jail.)

Most likely, if you applied for the card, received it, used it, and failed to pay the bills, you will be found to be in breach of contract and the creditor will get a judgment against you. A judgment is good for many years (20 in Massachusetts) and is usually renewable. The creditor may wait until your finances change, it may attach property you own, or, more likely, it will seek to negotiate a payment plan with you. Given your situation, you should probably consult with a debt relief attorney to determine what options are available to you for resolving your debt. You may be a good candidate for a bankruptcy, depending on the amount of debt you have and what your assets are.

You have no money now but in the future the judgment, which will have interest and attorneys' fees added, allows the creditor to garnish your wages, take money from bank accounts, put a lien on real property you might have in the future and send you a notice to attend a court date to be questioned about your assets and income and you can be arrested if you don't show up. Also, the judgment in your credit report will reduce your credit score for many years even more and the judgment is initially good for 10 years and can be renewed for the rest of your life and will increase by 10% per year. While you are right that going to court now will probably do you no good since you will probably lose the case anyway, you might have to file a bankruptcy case at some point to clear up your debts. However, sometimes the creditor does not show up and the case is dismissed. If it is only $5,000 then bankruptcy is probably not the best option because of the relatively small amount of the debt and a payments plan or a negotiated settlement of the judgment might be a better option now (before the judgment is entered) or in the future after the judgment is entered.

See a lawyer. Let me stress that. See a lawyer. If you lose, and you probably will, they will get a judgment. Creditors can then take your car and bank account and when you return to work, they can attach your wages. Generally a lawyer can help make sure you avoid those bad effects. Don't wait any longer.

There are several ways a judgment creditor can enforce its judgment. Some typical ways include wage garnishment and levies on bank accounts. If a creditor has a judgment it may be worthwhile to try to make a payment arrangement. Also, there are exemptions that can be claimed to prevent all of your assets being seized. An attorney can help you file for exemptions. You could also consider consulting with an attorney regarding bankruptcy.

You can't get blood from a turnip. However, keep in mind that if they obtain a judgment against you, their next step may be to serve you with a form that calls for you to answer questions about your income and assets. You must complete this form and return it to their attorneys. If you don't, they may ask the court to hold you in contempt. In that case, a bench warrant could be issued for your arrest. I'm not trying to scare you. There is no imprisonment for debt in Minnesota. Its only a problem if you don't cooperate in terms of disclosing your income and property when asked.

Bascially you are judgment proof. If you dont go to court the same result will occur. You can try to go to court and work out a settlement but if you have no funds there may be no point in even appearing unless you have a valid defense against the claim.

Maybe nothing will happen unless something changes and in the future you have a job or assets. They could put a wage garnishment on your paycheck when you return to work or seize whatever money you have in your bank account currently or in the future. The judgment might also have a negative effect on your credit rating but then again, it might already be very low. Good luck to you, and you should keep in mind that bankruptcy might help you in the future by erasing this debt and any other debt you have.

They can obtain a judgment against you and garnish any money you may have in any bank accounts and can garnish your wages once you are employed again.