If you have been sued by a credit card or any other financial institution, you may not know how to proceed with such a situation. The important thing to remember is that you should not ignore the creditor and the lawsuit. Typically, you will have twenty days to answer a complaint and/or might have to appear in court. If you do not follow these rules, the court will likely enter a default judgment against you, which means that you have essentially lost the lawsuit based on a technicality. If this happens, the creditor's allegations in the lawsuit will likely go unchallenged, and the court will enter a judgment, stating that you owe money, court costs, legal fees, and other charges. A judgment is a serious matter, because it means that a creditor will now possess the legal right to garnish your wages or take funds from your bank account, among other things.
Consumers that fail to respond to respond are sacrificing their legal rights, because there are many times the credit card companies do not have their paperwork in order. If challenged, a credit card company could perhaps not be able to prove that you owe the debt. In addition, even you if owe the debt, many times a credit card company is willing to negotiate the debt and is willing to extend the terms of the repayment. For example, if a credit card is owed $2,500, they will frequently accept monthly payments at $50.00 per month with no further interest.
Contact a Lawyer in New Jersey Today
At Lutfy Law, we know how debt can impact an individual, a family, or a business. If you have difficulty paying bills because of the debt you or your company have accumulated, speak to a bankruptcy attorney in New Jersey today by filling out our online form or calling us at (908) 656-4704. We will schedule a Free Consultation so that you get the answers you need to all your financial questions.