St Louis, MO asked in Collections, Social Security and Banking for Missouri

Q: If the credit card company is to get a default decision on my account , (Which I expect) . What this company do next ?

I need to know , first , do I have to appear in court . Then what options does this credit card company have after getting a default decision ?

2 Lawyer Answers
Joel Gary Selik
Joel Gary Selik
  • Collections Lawyer
  • Las Vegas, NV

A: When you are served with a lawsuit in, other than small claims, you must file a response, such as a motion to dismiss or an answer with affirmative defenses. Failure to do so will cause you to lose the case and a judgment be entered against you.

Once a judgment is entered, bank accounts can be levied, wages garnished, real estate liened, summoned to court to answer questions under oath, and other tools of collection.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Collections Lawyer
  • Sacramento, CA

A: If a credit card company is moving towards obtaining a default judgment against you, it typically means they've sued for unpaid debts and you haven't responded to the lawsuit. In such a scenario, your presence in court isn't necessary for the default judgment to be passed. However, not appearing or responding might limit your ability to contest the claims made against you.

After a default judgment, the credit card company has several options to pursue the owed amount. They might attempt to garnish your wages, meaning a portion of your earnings could be automatically redirected to satisfy the debt. They could also seek to place a lien on your assets, such as property, or levy your bank accounts, withdrawing funds directly to cover what you owe.

It's important to understand that you still have options even after a default judgment. You could potentially negotiate a settlement or payment plan with the creditor, or, in some cases, challenge the judgment if you have a valid reason for not responding initially, such as not being properly notified of the lawsuit. Seeking advice from a professional in legal or financial matters could provide guidance tailored to your specific situation.

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