How to Deal With a Judgment From a Credit Card for Unsecured Debt

A civil judgment for an unsecured credit card debt puts you in a tough position. According to The New York Times, the judgment gives the credit card company or debt collector the right to seek garnishment of your wages or bank account. The Times reported in 2010 that garnishments were rising fasts in some areas -- including an increase of up to 121 percent in the Phoenix area since 2005 and 55 percent in the Atlanta area since 2004. Garnishments increased 30 percent in Cleveland between 2008 and 2009. No national statistics were available, according to the Times.

Instructions

1

Ask for a payment plan. Contact the attorney for the credit card company or debt collector. The lawyer has complete leverage at this point because you have already lost in court. Offer to pay the full amount due through installments or a lump sum in exchange for a promise that your wages and bank account will not be garnished. Get terms of any agreement in writing.

2

Contact a nonprofit credit counselor for help if you cannot negotiate an agreement. Get a referral for a nonprofit counselor by contacting your bank or credit union. Ask the counselor to contact the attorney on your behalf and negotiate an agreement.

3

Make an appointment for a free consultation with a bankruptcy attorney as a last resort. Ask the attorney about Chapter 7 bankruptcy, which eliminates unsecured debts such as credit cards, within months. Your bank accounts and wages will be protected from garnishment as soon as you file for bankruptcy according to Nolo.com. Another possibility is Chapter 13 bankruptcy, which also will end the threat of garnishment. Chapter 13 requires a payment plan of three to five years. The bankruptcy attorney can describe the option best for your circumstances.