![]() Stay calm when you receive a summonsĭon’t freak out if you get a summons. Here are five steps you should take after receiving a summons. Taking action instead of hiding from the problem will make you feel better and ultimately help you move on. That means they must deliver a summons informing you that you’re being sued, the name of the plaintiff, the amount it says you owe and your court date and time. Five steps to take if you are sued for credit card debtįirst, no one can legally sue you without properly serving you. And they may be able to deplete your bank accounts as well.Įven if you receive notice of a default judgment against you, you may be able to settle – if you respond soon enough. How much can they garnish or take from you for credit card debt? Up to 25% of your disposable earnings if your monthly income exceeds $1,256. And over time, interest accrues and the balance grows. ![]() ![]() Once you earn more or come into some money, the judgment creditors will be waiting. Judgments can last for years and successful plaintiffs can renew them when they lapse. Think you’re “judgment proof” (too broke for your creditors to collect) because you don’t earn a lot or have money in the bank? Think again. Non-exempt income and assets are those that your state allows judgment creditors to take – for instance, 25% of your disposable income.Įxempt income or assets cannot be taken – like social security or disability income and bank accounts holding those funds. And as long as you have non-exempt income or assets, you are fair game for wage garnishment or asset attachment. If you ignore a lawsuit, the plaintiff will almost certainly win the right to collect money from you – the balance you owe plus interest and collection costs – perhaps even attorney fees and court filing expenses. How to Read Your Credit Card Statement What happens if you ignore a lawsuit? ![]()
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