Falling far behind on credit card payments is nerve-wracking for most people. They fear that the account will be sold to a collections agency, or transferred to an agency to arrange and manage payments for the company. They’ve probably heard plenty about this, but they might never dream that a credit card company would actually threaten them with a lawsuit. This is definitely the time to contact a bankruptcy attorney in Lawrence, KS for a consultation.
A Scary Moment
Before a lawsuit is filed, the company’s law firm is likely to send a letter to the consumer informing of the intent to sue if payment is not made promptly. This is a scary moment, since most people have never been sued and don’t really understand the implications. They’re afraid of losing their home and perhaps of even being sentenced to jail. A bankruptcy attorney in Lawrence, KS can explain exactly what the letter means and provide guidance on how to proceed.
Losing Important Assets
A lawsuit over unpaid credit card debt is a civil action, not a criminal one, so the individual will not receive a prison sentence. It is possible to lose important assets, however, if a judge decides in favor of the plaintiff, which is the credit card company. Lawsuits generally are not filed by credit card companies unless the debt owed is substantial, such as in the range of $10,000 or higher.
A Summons and Complaint
If the lawsuit is filed, the person will receive a summons along with a complaint. The individual must take this very seriously. A court date will be provided on the summons, and this person or a lawyer representing the person must appear. Otherwise, the court is likely to issue a default judgment in favor of the plaintiff.
By the time someone has run up a credit card to this amount and defaulted, it’s likely that other obligations have become impossible to pay as well. The person may have several credit cards and a personal loan or two. Filing for bankruptcy with the assistance of an attorney such as Joe Wittman puts an immediate stop to collections activity.
