Sued for old credit card debt? Do not Make a payment!

I have to say I'm excited about the actions that some of the Attorneys General of this country is taking. It is logical that other states will follow suit and this is a big win against the junk debt collectors that feed on consumers who do not realize that their old debt is beyond the statute of limitations.

Here's the deal with credit card debt consumption. There is a statute of limitations. This means that after so many years (varies by state, the average seems to be around six years, but in some states is as little as 3) a debt collector may continue to perform the collection, but can not sue in a court of law.

Well, whole armies of debt collectors have to be enriched by the court system for years! It will issue a complaint or lawsuit against a debtor who has an old debt. Most of the time this debt has been sold and resold to different debt collectors and buy for pennies on the dollar. The original creditor issue has long forgiven the debt, reducing your tax burden.

The debtor receives a subpoena to appear in the lawsuit. At this point you have three options. You can hire a lawyer to defend themselves, they can respond pro se (without counsel) and defend themselves or more often panic and do nothing.

A general call, be answered in what is called a "response" within 20 days or given a sentence in absentia. This is what happens in more than 95% of the demands of credit card debt.

No one answered the lawsuit, the lawyer does not even have to be in the courtroom (most of these cases are handled by mail) and a sentence in absentia is granted and the debtor now has an opinion on your credit report and collector has the legal means to garnish your wages or bank accounts frozen until his trial is complete and paid in legal fees, interest and penalties are tacked on to the original amount owed.

Judgments rendered in absentia should not happen. The worst case scenario for most of these cases is due to agree a reduced amount.

In addition to requiring them to inform the debtor that if you make a payment that will start the clock SOL. That's right. I have seen the payment of $ 20 debt which was far beyond the Sun (10 years or more) completely sabotage the efforts of people to defend themselves in court. One payment, no matter how small it starts the clock to zero.

Of course, we all know that debt collectors will try to find sneaky ways around this rule, but it is a big step forward and I sincerely hope other states follow suit. It is important to remain vigilant when it comes to debt collectors. For more information on self-defense in a lawsuit credit card debt (Pro Se).

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