Summons for credit card debt
My friend daughter just received a summons for credit card debt. The not so little 24-year old girl simply has not paid on the credit card since her sophomore year. Now, gainfully employed for almost 2 years, she is ideally suited for a nice lawsuit. Yet it is no big deal for her. The parents are very upset, she still lives with them and received summons at their address on 01/15. The court is in early April. The credit card debt that initially was just over $2,200 is now close to $5,000, including some Discover costs, law firm fees, interest and whatever else is in there. The young lady makes just over $35,000 and wage garnishment in Illinois is easier than many think.
The parents who until she received a summons, had no idea about unpaid credit card debt, are looking for any way to settle before court date. They are talking with the law firm representing Discover, offering to pay a lump sump since the law firm has so far refused to even discuss any sort of an installment payment plan.
They, the firm are certain to get a judgment which will allow wage garnishment. At the very least, they are demanding the daughter to sign a stipulated judgment as part of any agreement. A stipulated judgment or stipulation of judgment signed by the defendant basically represents an equivalent of pleading guilty and results in a recorded judgement, visible to every lender that pulls her credit report. Not a very good credit situation for a reasonably bright 24-year old. Then again, she received summons for credit card debt.
Stipulated judgment also gives the plaintiff right to simply go ahead and get an order of wage garnishment if the defendant fails to pay as agreed under the settlement. So it basically as they have won the judgement. Thus, all the credit card debt free loaders out there, the day of reckoning is coming. As long as you have some garnishable wages and liquid assets, watch out.
Thu Jan 27, 2011 01:01PM | Copyright: www.bad-credit-advisor.com | More in Credit Card Debt | Comments (0)
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