Legal Question in Credit and Debt Law in California
I have a Credit Card with almost a $4,000.00 balance that I quit paying. I have been served a Summons "LImited Liability Case" Complaint for Account Stated Money Lent. I didnt think since this was an Unsecured Credit Card that they could do this. Do I have any options ?? I only have about 20 days to File my Response.
2 Answers from Attorneys
It's an unsecured credit card, so you don't have to pay?? Ha ha. Unless you have a better defense to the lawsuit (for example the debt is over four years old) you need to either pay or go bankrupt.
A credit card company can sue for the money due on an unsecured credit card. Unsecured means that there is no collateral, such as your home. You should file an answer with affirmative defenses. You may be able to find samples or more information in a law library. You should study to see what valid defenses you may have, such as beyond the time to collect, or that the interest or other charges are illegal, or that their actions in collection were unlawful. In answring the complaint, see if you qualify for a court costs waiver (there are forms for this by the Judicial Council). If you have other debts or if this debt alone is overwhelming, bankruptcy might be an ooption. You may be able to negotiate a settlement now, or further down in the litigation.