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What to do if you are taken to court for credit card debt

If a person living in the New Jersey area does not at least attempt to pay what they owe creditors, they could end up in a lengthy court battle. If a creditor sues a person and wins a court case for unpaid credit card debt, the creditor may be able to seize an individual’s assets or garnish their wages. Therefore, it is best not to ignore a legal summons to appear in court.

When a person discovers they are being taken to court for credit card debt, they should respond to the summons and see if they can stop the lawsuit. If the person being sued does not respond to the summons, the creditor will win a default judgement automatically. Individuals should contact the creditor that is suing them to see if they cannot reach an agreement outside of the courtroom. Some creditors will accept a partial payment or agree to a payment plan.

If court is unavoidable, start developing a defense. Common defenses include creditors failing to credit payments to an account, lack of documentation of debt and the debt being outside the statute of limitations. Additionally, if someone is only an authorized user on a credit card, they may not be responsible for the debt.

Those who are facing a court date over unpaid debt may also find speaking with a credit card debt attorney to be helpful. An attorney could help someone mount their defense and better understand the legal proceedings. This attorney could also advise individuals who need to prove they do not owe a debt.

Source: Fox Business, “Taken to Court for Card Debt? What to Expect,” Tamara E. Holmes, March 13, 2013

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