Not paying off a debt often creates serious problems, but usually does not lead to a criminal summons---unless the debt is the result of criminal fraud. Virtually all disputes about debt are treated as civil matters, with credit card companies and other creditors filing lawsuits in small claims court.
Summons and Complaint
Lawsuits for debt become official with the serving of a paper document called a summons and complaint. A summons is a notification of a lawsuit and the complaint is the actual lawsuit. Usually a sheriff's deputy or private courier delivers them in person. They deliver the documents to people at their homes, places of employment and other public locations. In some states, delivery is by certified mail or left at the last known address. The summons provides instructions responding to the lawsuit, such as appearing for a court hearing or filing a written response.
Differences
The process for serving lawsuits shows the differences in civil summons and criminal summons. A criminal summons often leads to an arrest, with the person taken to jail at least temporarily. That simply does not happen in lawsuits about debts such as credit cards. The credit card company or debt collector resorts to a lawsuit only as a last resort to collect the full balance on the account and isn't alleging criminal activity.
Default Judgments
Some people ignore lawsuits---with disastrous results. Failing to appear for a court hearing or respond in writing gives the debt collector an easy victory. The judge will automatically grant a default judgment to the debt collector, and that creates big problems. The judgment requires the person sued to pay a specific amount of money for the full balance of the debt plus court costs and attorney's fees. Some debt collectors regularly file lawsuits against hundreds of people, knowing a certain percentage won't show up in court to defend themselves, resulting in easy judgments.
Garnishment
A judgment allows debt collectors to move on to bank or wage garnishment. Bank garnishment gives the debt collector full access to a person's checking account. The debt collector can freely withdraw money from the account as many times as necessary to pay the judgment. Wage garnishment forces employers to make payroll deductions each pay period to send to the debt collector.
Legal Advice
Representation from a good attorney is important even though there is no risk of jail with a debt lawsuit. A reputable consumer affairs attorney can offer advice on avoiding judgments and settling debts out of court. Some debt lawsuits are settled for 20 to 70 percent of the balance, according to SmartMoney.
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