If a credit card company files a lawsuit against you, the company will attempt to obtain a court judgment. A judgment is a legal decision requiring you to pay the full balance on the account. If you refuse to pay, the judge in the case can allow garnishment of your bank account or wages. Responding to the lawsuit is critical. Ignoring the lawsuit and doing nothing results in an easy victory for the credit card company.
Default Judgments
Some people decide not to respond to a credit card lawsuit because they don't have the money to pay the debt. They may be suffering from unemployment, illness or other financial problems. However, failing to respond to the lawsuit limits options and results in a so-called default judgment. A judge has no choice but to issue a default judgment when a defendant in a credit card case fails to respond to court notices. After a default judgment the credit card company can request bank or wage garnishment.
Garnishment
Bank garnishment allows the card company to freeze your bank account and withdraw money to pay for the judgment in a lump sum, or in installments as money becomes available in the account. Wage garnishment forces employers to withhold a percentage of your paycheck each pay period and send the money to the attorney for the card company. Some people with multiple credit card lawsuits enter bankruptcy to end garnishment. Bankruptcy stops all garnishment activity immediately.
Considerations
People facing credit card lawsuits should immediately seek help from a consumer affairs attorney, if possible. Not all attorneys are super expensive, and a debtor need not hire the most powerful attorney in town for a simple credit card lawsuit. Some attorneys may offer a flat fee for responding to the lawsuit and offering advice through the process. Debtors should try to avoid judgments, and attorneys can help even if the debtor really does owe the money and the card company can prove it. An attorney can use legal motions to stall a credit card lawsuit for months or even more than a year. That gives the debtor a chance to save money to settle the case -- and avoid a judgment.
Options
It is possible for a defendant to represent himself in a credit card case, although that is risky. Attorneys for credit card companies have an advantage when matched against a defendant representing himself. Defendants representing themselves should at least seek one consultation with an attorney to learn more about the process and available options.
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