Failing to show up in court for a credit card lawsuit has severe consequences. The judge will automatically award the credit card company a so-called default judgment. The judgment requires you to pay a specific amount of money. By failing to appear, you waived your right to defend yourself against the allegations in the lawsuit.
Considerations
"The New York Times" reports that some debtors fail to show for court hearings because they are unaware of the lawsuits. Couriers usually hand-deliver lawsuits to debtors at their residences, places of employment or other public places, but some states allow delivery by certified mail or allow the courier to leave the legal papers at the debtor's last known address.
Garnishment
The court assumes proper delivery of the lawsuit based on information from couriers and other court officials. That allows the court hearing to proceed as scheduled. Without the defendant in the courtroom, the judge has no choice but to grant a default judgment for the credit card company. That can lead to garnishment of the debtor's bank account or wages. Bank garnishment allows the credit card company to freeze the debtor's account and withdraw the full amount of the debt in a lump sum of installments. Wage garnishment forces employers to send the debt collector a percentage of the debtor's paycheck each pay period.
Solutions
Debtors who fail to show for a court hearing can file a motion to vacate the judgment. This process exists for people who really were honestly unaware of a court hearing or had legitimate reasons for not showing up for the hearing. A judge reviews the request and schedule a new hearing if he grants the motion. Debtors battling a default judgment should seek help from a consumer affairs attorney, if possible. The attorney can file the paperwork for vacating the default judgment and also contact the attorney for the credit card company to discuss a settlement.
Alternatives
Settlement is just one option for resolving a judgment. Usually, debt settlement leads to an agreement for the debtor to pay less than the full balance on the debt. However, a creditor holding a valid judgment may insist on receiving the full amount. Some debtors facing multiple judgments and garnishments elect to file for bankruptcy. Bankruptcy immediately stops enforcement on judgments and stops all garnishment.
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