Credit card debt can snowball faster than you can keep up with, especially if you’ve been using your credit card to buy groceries and pay your utility bills. The reason this happens is because people don’t view credit card debt as actual debt – it’s “plastic money”, so it doesn’t really count. Defaulting on your credit card debt by simply ignoring your repayments might seem like a convenient way to free up some cash, but it’s not. Credit card debt is very real, and the companies behind the cards will come after you for monies owed. If you don’t repay this debt, you are in breach of contract with the credit card issuer.
If you ignore this debt for long enough your credit card company will eventually issue a court summons against you, in an effort to get you to repay your debt to them. Once a summons has been issued, you’re expected to appear in court, on the appointed date, to explain why you’re not making the repayments you agreed to.
Failing To Appear
Being served with a court summons fills most people with fear, so much so they choose not to appear when requested. This isn’t a good idea because this is your opportunity to present your side of the case, including any reasons why you shouldn’t have to repay some, or all, of the credit card debt. Generally speaking, you must appear in court in person, but you can sometimes present your defense in writing.
When you don’t answer your summons, the court will only hear one side of the case. Also in some cases the judge may issue a warrant for your arrest, although this is quite rare. If, however, you are arrested for not answering your summons you can expect your bail to be set for the full amount of your debt.
Whether or not the court issues a warrant for your arrest varies from state to state. What will happen if you ignore your court summons is that the judge will issue a default judgment against you for the full amount of your credit card debt. In effect the credit card issuer wins by default. A default judgment will be granted within twenty days of the papers being served on you, and you’ve failed to respond to the summons.
Default Judgment
Once a default judgment has been issued against you the amount you owe to your credit card company is now your legal responsibility. The credit card company can now take action to recoup their losses by seizing assets of equal value to your debt, placing a lien on your home, or even garnishing your salary each week, or month. It’s worth remembering that by the time this happens your debt has probably been sold on to a debt collection firm, or “junk debt” company.
Your credit card company doesn’t have time to personally pursue each debt, so they sell on your debts to be managed by another company. You would now have to arrange repayment with the debt collection firm instead.
Statute of Limitations
There is a statute of limitations on all credit card debt, after which time you will no longer be required to pay it. Failing to answer your court summons means that the statute of limitations stays in place, forcing you to repay at least a portion of the money you owe.
Your Defense
Debts like this are sold for cents on the dollar – many times these “junk debt companies” are unable to pursue you legally through a civil suit because they lack the documentation and evidence to do so. What they’re hoping is that you choose to come to a settlement with them, because they know if the case goes to court there\’s a good chance you’ll win.
Please immediately consult with an attorney if you’ve received a court summons in relation to your credit card debt. Most credit card debt cases are easily defended, especially if your debt has been sold on to a third party.