If your creditor has filed a lawsuit against you, then you are required to respond. You should also attend the court hearing with all the relevant documents. If you ignore the summons, then you can get into deep trouble because the court may issue a default judgment against you. The court may even issue wage garnishment order.
If you don't want to get into the legal hassles, then you should contact your creditors and negotiate an alternative repayment plan with them. Once you start paying on a new agreement,your creditors will dismiss the case. However, you should ask your creditors to update your account status as "Paid in Full" or "Paid as Settled" on your credit report.
Wed, 06/07/2006 18:37
anyone know what happens when a creditor takes you to court? they are sueing myself and my husband and my husband can't be there because of work and on the papers we received it just says to show up otherwise a judgment could be granted. also i'm not disputing i owe this money. its just i just recently got my money to t&c and they are in the process of getting it to them. and i was wondering do they automatically garnish your wages and if so do they both of our wages or just one.? any help would greatly be appreciated. Thanks
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.