I have recently received a court date for a wage deduction for a credit card. I am currently un employed?

Question

i have recently received a court date for a wage deduction for a credit card. I am currently un employed. Do i hire a lawyer and what will happen in court

Answer 1

they will win a judgement against you it will s***w up your credit for next 7 years

Answer 2

First thing to figure out is this debt time barred (beyond your states statute of limitations.  Illinois SOL for credit card debt is 5 years.  So if the last date of delinquency was over 5 years ago, this would be your defense in court, you could plea that the debt is beyond the state SOL and the judge will have to dismiss the suit.

Second.  If the debt is NOT time barred, then they can't get blood from a stone.  If they do win a judgment and you are un-employed, you can plead the fact that you are "judgment proof" which really means that you are "execution proof" and have no income to garnish or funds to seize. Mind you, this is only a temporary defense.

You may be considered "Judgment Proof" during periods of unemployment or while drawing disability pay or disability retired pay. Also, if you have no assets such as home, car, land, and other big-ticket items. In other words, you have no money and can prove it!

Never ignore a lawsuit just because you are broke or have no assets! If a debt collector or creditor is trying to sue and you believe that you are judgment proof, you must respond to the lawsuit as such. Failure to appear and show the judge why you are judgment proof opens the door for the judge to grant the collector a "default judgment".

Even though they cannot collect anything from you now, they can wait many years and try again. Also, the judgment will show up on your credit report.

Although creditors and debt collectors win lawsuits, they still have to collect thus, if you are penniless you are insulated not from judgment but from execution (collection of the debt - at least temporarily).

If you lose your "judgment proof" status due to new employment, the creditor or collector can seek a judgment and ask for a wage garnishment of up to 25% of your disposable income. Once you're employed again, it's better to negotiate a reduced payoff rather than risk a court-ordered judgment. The difference is your credit report will show "debt settled" instead of the more negative "judgment"!

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 3

what state do you live in?

Answer 4

I'm not exactly sure what you are asking here.

Is this your first court case for do they already have a judgment.

In may states, the creditor can request a "judgment debtor" disclosure, where you appear in court and turn over all of your personal financial info.  That would include your employer (so they can garnish your wages), your bank accounts (so they can seize them), and your social security number (so they can seize your state tax returns if it's legal in your state).  I've see a trend to also demand copies of tax returns also, as this supplies much of the same information.  

If you have no job, there is nothing to garnish and nothing to worry about (for now).  Move your money from your bank accounts.  They could also seize property such as your car, or place a lien on your home.

Answer 5

File bankruptcy.

The moment you file bankruptcy, credit cards are supposed to stop what they are doing to you.