Legal Question in Credit and Debt Law in Georgia

No one knows anything about your case and there is no "form" for every case. See a lawyer, or risk a judgbment (and if you do owe the money and have no defenses, a judgment will likely be the result anyway).

If you have been sued by a credit card company, perhaps the worst thing you can do (other than ignore it) is to file an answer pro se. The fact that you had to ask how compounds the fact that you are headed in the wrong direction.

By letting a case go to suit, you have already mishandled it by not getting counsel earlier in the process. The end result of most suits, with or without an answer will be the seizure of your bank accounts, paychecks and assets.

You need a lawyer ASAP. Be sure you retain one before 30 days elapses. The lawyer will determine if you have a defense to raise (rarely will that be the case, but it is possible), should try to settle, or should get the case tossed by filing bankruptcy. He may also explore other options.

My office handles these matters in the county where you live, so feel free to call me at 404-768-3509 for a consultation.

My focus is a little different from the above attorneys. They are focused on litigation and if you decide to pursue that route, you should absolutely see an attorney and have them draft a proper answer for you before its too late. You have 30 days after you received notice of the lawsuit in order to file an answer or other objections.

Before you decide that you must answer, you should ask yourself whether you need to do so. If it is your debt and you have no defenses then the credit card company will get a judgment against you. If it is your debt and you have no defenses and you admit the debt in your answer, the credit card company will get a judgment against you. If you deny the debt in your answer, but it is your debt and the credit card company can prove it, the credit card company will still get a judgment against you, but later. If you do nothing the credit card company will get a judgment against you.

The only way you are going to win is if you have valid defenses or grounds for a countersuit. Valid defenses generally can be: (1) the statute of limitations has expired (it begins to run from when the debt became delinquent; assuming that the debt was created in Georgia, caselaw says that the statute of limitations is 6 years); this is not your debt and was the result of identity fraud or theft; (3) the credit card company does not have proof as they might have sold the debt; (4) the amount stated in the complaint is wrong (they are allowed to collect interest on the debt, so even if the debt was small at the time you stopped paying, interest will make it grow larger); or (4) you already paid the debt. You also may have your own counterclaims if they hired a debt collector who violated the law.

If none of these apply, then you need to think things through. You can file an answer and delay the entry of judgment. For some clients, gaining more time by filing an answer is what is needed. However, lawyers cannot lie and if they sign an answer that is untrue, they will get in trouble, so a lawyer cannot lie and dispute the debt if its really your debt. Also filing an answer sometimes works to your detriment. I used to think that making the credit card spend money to prosecute their claim was smart. It isn't - usually credit contracts require you to pay their legal fees so for every dollar you make the credit card sompany spend, they are going to add it to the judgment.

Also, if this is your debt, then if you hope to settle, some creditors may not be inclined to settle if you go and litigate this. There is no law that says they must settle so its not very smart to antagonize them if this is your goal.

Assuming this is your debt and there are no defenses, then how are you going to pay a judgment when it is entered? Settlements can be made at any time - before or during litigation or after judgment. Do you have funds to settle the debt? It may be possible to settle for anywhere between 50% and 80% of the debt, depending on the creditor and the law firm. These are just general averages - not any guarantees, as I know nothing about your case. If you do not have funds now, start saving up. You have some time before they try and collect. The creditor can do nothing until 30 days after the judgment is entered. You can also work out payment plans to avoid the creditor from levying on your assets, like a bank account.

If there is no way that you can pay at all, then do not waste money on a litigation attorney to draft an answer for you. If you have a lot of debt, consider filing bankruptcy. Either of the above attorneys may be able to also assist you with that. Whether you use them or not, do get a consult with a bankruptcy attorney. You need to know about that and just because you get a bankruptcy consult does not mean that you need to file now.

A bankruptcy attorney can review your assets and debts, which I don't know. Georgia does allow wage garnishment, so that is a possibility if judgment is entered against you. However, if all your income is exempt from garnishment and you have little or no assets, then maybe you do not need to worry about bankruptcy.

I have many Georgia clients who I assist in settling their debts outside of litigation, as I do not go to court If you would like to resolve your debt in this manner, I can do so for a reasonable fee. I give free consults via email. Please contact me if you are interested.

email: rachelforjustice@hotmail,com