What Happens in Court After a Summons by a Credit Card Debt Collector?
Sometimes, negotiations fail. Sometimes, debtors ignore a debt hoping that it will just go away. No matter the reason, some debt collectors will take a person to court to collect on a delinquent credit card debt. The court process unfolds in a predictable way, although by the time the matter reaches a judge, the debtor's options are limited.
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Appearance
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A person who is summoned in a civil suit should appear before the judge. Failing to appear may result in a summary judgement in favor of the plaintiff. When summoned, a person should arrive in a timely manner. Usually, the first step is that the plaintiff and defendant speak in an attempt to arrive at a settlement agreement, so the counsel for both parties will work through a plan to set a final debt amount and repayment plan.
Negotiation
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During negotiations prior to the appearance before the judge, both parties will review the facts and figures about the debt to arrive at a mutually agreeable settlement. At this point, the plaintiff has little incentive to negotiate insofar as they are likely to win a judgement in open court, but sometimes negotiations will result in a favorable resolution for both parties. If this happens, then the attorneys will draft an agreement, which will be presented to the judge.
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Open Court
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Irrespective of whether both parties can agree on a settlement agreement, the matter will be called before the judge. The clerk or bailiff will call the parties before the judge, and they will discuss the current state of the case. If a pre-trial settlement was reached, the judge will review and endorse it. If not, then the matter will be scheduled for further litigation.
Entry of Judgment
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After a settlement agreement, or after a finding that the defendant is responsible for the debt, an order of judgement will be entered into the court record. In many jurisdictions, this is a matter of public record, and it will attach to a person's credit record for seven to 10 years. The judgement will specify the actual damages awarded.
Disputes
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If the debtor has a dispute about the facts in a case, he may bring it forward to the judge. However, many judges are intolerant of plaintiffs who try to avoid paying legitimate debts through nitpicking details. It is usually better to acknowledge the debt and move on.
Garnishments
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If a debtor refuses to pay on a settlement agreement, then the plaintiff may go back to the judge to request a garnishment order. This order, when presented to an employer, requires the employer to withhold a certain amount of the debtor's payroll, redirecting it to the plaintiff through the court, until the debt is satisfied. Each state has different standards about what may be garnished, and how much may be withheld per paycheck.
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References
- Photo Credit bank statment and cut credit card image by Warren Millar from Fotolia.com
