Full question:
I have just received a copy of a request for default and request for default judgement filed with the local district court against me for credit card debt in the amount of $7000.00. I am unemployed and have depleted my savings. What can I expect to happen now. Should I call the Law Firm that represents the Credit Card company to see if I can workout a settlement? I really have no idea what to do. I have no money to pay for a lawyer.
- Category: Debts and Credit
- Date:
- State: Massachusetts
Answer:
Once a default judgment is obtained, the creditor is less likely to settle for a lower amount, as they have incurred court costs and attorney fees. A judgment lien can be placed on your property, allowing the creditor to claim an interest based on the court's decision. If the judgment remains unpaid, the creditor may seek to place a lien on your assets, such as bank accounts or real estate, to secure payment.
The creditor may also request a deposition to uncover your income and assets. If a lien is placed, the next step may involve selling your property to satisfy the debt. Additionally, the creditor can ask the court for a wage garnishment order, which would require your employer to withhold a portion of your earnings to pay the debt. Wage garnishment laws vary by state, but typically, the amount garnished cannot exceed twenty-five percent of your disposable earnings or the amount exceeding thirty times the federal minimum wage.
Some income types, like unemployment benefits and Social Security, are exempt from garnishment. If you're considering contacting the law firm representing the credit card company, it may be worth discussing your situation and exploring potential settlement options.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.