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Credit Card Company Lawsuit? The Default Judgment Could Happen in Several Different Ways

credit card company lawsuit
  • Nov 4 2019

While some consumers fall into debt gradually, others may find themselves eaten up with financial worries at a surprisingly rapid pace after an unexpected life event. While we all know how imperative it is to have a savings account built up—as well as an emergency fund—that is easier said than done for most in the United States who still live paycheck to paycheck.

Even if you usually pay all your bills on time, and are a good money manager, if your income has been severely impacted for reasons beyond your control, you may be worried about what is going to happen next. The fear of the unknown can be deeply stressful, but in consulting a skilled debt protection attorney, you can plot a course of action for the future and fend off financial trouble before it worsens.

If financial issues are not addressed—for example, with a credit card company you may be indebted to, you could find yourself in a complicated situation legally—and especially if the creditor moves ahead to file a lawsuit. In that case you would find yourself presented with a summons and complaint, generally by a private process server or sheriff. In most cases you will knock on your front door, or they may even have to work in chasing you down a bit if you aren’t home much and meet you at work or another location to serve legal documents. And while such a process (actually, this is called process of service) may seem embarrassing, it is a wakeup call regarding a situation that needs to be addressed quickly.

With no reply to a collection lawsuit and no presence in court, you lose by default in most cases, leaving the court to grant a default judgment almost immediately. The court may move to grant a default judgment against you almost automatically, but there are several ways this can happen.

A default judgment may be rapidly granted against you if you do not reply to the lawsuit or show up in court. This is very common, and unfortunately, most defendants do bother with either very important task. It is in your best interest though to put your best foot forward and work with an attorney who may be able to turn the case around easily. In some cases, all it takes is requesting proper documentation regarding the account from the creditor or debt collection agency.

If however, you are involved in a trial regarding debt and you lose, a default judgment could be granted—or, a creditor may win by summary judgment with no jury and no trial at all as there are no facts to dispute; in other words, because they see you as owing the debt with no question. In other cases, the judgment may be included as part of the court settlement.

The best choice is to avoid having a default judgment granted against you to begin with, but if you are concerned about such action, consult with our attorneys at Fitzgerald & Campbell, APLC as soon as possible. We have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Let us review your case and discuss what would work best for you. We are here to help! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at info@debtorprotectors.com.

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Posted in: Collections lawsuit, Credit Card Debt, Credit Card Lawsuits, Judgments