What Happens if You Fail to Show in Court for Credit Card Debt?
If you fail to appear in court for a credit card lawsuit, you may face severe consequences. The judge may automatically provide the credit card company a default- judgment. If you fail to appear in the court, you will lose your right to defend yourself against the allegations within the lawsuit.
Considerations
In a report, the “The New York Times” says that some debtors fail to appear in the court hearings, as they are unaware of the lawsuits. Though courier service providers usually hand-deliver lawsuits at the debtor’ residence, place of employment or at other public places, sometimes they deliver by certified mail or leave the legal papers at the debtor’ last known address.
Garnishment
The court takes for granted the proper delivery of the lawsuit as per the information from the courier service providers and the court officials. This allows the court to proceed as per the schedule. However, if you don’t appear in the court, the judge may declare a default judgment on behalf of the credit card company. This may lead to garnishment of your bank accounts or wages. If this happens, the credit card company will freeze your bank accounts and withdraw the full amount to get the amount owed.
Solutions
If you fail to attend a court hearing, you can file a motion to vacate the judgment. However, this expediency is only available for those debtors who were really unaware of a court proceeding or had other legitimate reasons behind not attending the court. The judge reviews the request and schedules a new hearing if the motion gets granted.
Alternatives
Debt settlement may be an option to resolve a judgment. In a debt settlement, you come to an agreement with your creditor and pay less than the full debt amount. However, if a creditor holds a valid judgment, he may force you to receive the full amount. However, if you file for bankruptcy, all judgments and garnishments stop immediately.
Discussion
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