Legal Question in Credit and Debt Law in Georgia

If the debt is large enough hire an attorney.

Otherwise, you must file an answer and counterclaim within 30 days of being served. (If you are being sued in one of the Georgia state courts.). You can generally deny liability, among other responses. If you don't respond within 30 days, the court may enter a default judgment.

In addition, you may consider filling a counterclaim for contacting your father and grandmother. There are several claims, including invasion of privacy

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When were you served with a complaint? You have 30 days to file an answer. After the answer is filed, then you get to engage in discovery and not before.

If you want to litigate, then go to a lawyer specializing in credit card defense.

Before you do though, ask yourself these questions:

(1) Notwithstanding that nothing with the credit card number is attached to this account, who is suing? The original creditor or a junk debt buyer?

(2) How long has it been since you stopped paying on the card or how long has it been since it was alleged in the complaint? If it is 6 years or less, the action is timely. If its over 6 years, you may have a valid defense and you should see the credit card lawyer immediately so you can raise the defense in your answer. If the defense is not raised, its waived - meaning you cannot assert it.

(3) Is this really your debt? Only you know the answer to that question. You have a moral, if not legal, duty to pay your debts. Yes, you can pay a lawyer to fight, but if you have no defenses (like the statute of limitations), then they credit card company will get a judgment against you. If you do nothing, the credit card company will also get a judgment against you, albeit sooner. The only difference is that for every dollar you make them spend, this may be added to any judgment. Also, if you become enough of an irritant, they may refuse to settle with you and you will end up paying the whole amount. So carefully consider whether it makes sense to litigate or not.

(4) Do you have a lot of other debts? In such case, would it be wiser to file bankruptcy rather than fight the lawsuit? If you have not had a consult with a bankruptcy attorney, then I suggest that you get one. Many attorneys give free consults. And just because you have a consult does not mean that you have to file today. Bankruptcy can be filed even after the entry of judgment.

(5) Bankruptcy is not right for everyone and I don't know your circumstances. There are alternatives are there besides bankruptcy or litigation. Debts can be settled at any time if you have the funds. Creditors and collectors prefer lump sums, but some creditors will spread out the settlement over payments from 2 to 12 months. I don't like long term arrangements, but it depends on the law firm and the particular creditor or junk debt buyer as to what they will do. Discover, for example, won't let you make more than 3 payments; others are more lenient. If you can't afford to settle at all, some creditors will allow you to make payments on the debt. I am not a fan of this either because you are paying on the whole debt. But, if wage garnishment or levy on other assets is a possibility, it may make sense.

I am not sympathetic to the credit card companies. However, I also don't believe the answer lies in fighting in court except on those rare occasions where the statute of limitations or some other valid defense exists. Lawyers who focus on litigating may have a different opinion and I respect that. But I believe in settling the debt, not litigating, if this is really your debt and there are no defenses.

Who is the law firm? Frederick Hanna? The Reagin Law Group? Pollack & Rosen? Emmett Goodman? Craig Goodman? Who is the creditor - Discover? American Express? Capitol One? Someone else? Or is it a junk debt buyer?

All have different limits as to what they will settle for. Depending on when you settle, settlements can range anywhere from 40% to 80% on average. Settlement will be based on whatever the balance is at the time you go to settle the debt.

I have settled debts for GA clients and can settle the debt for you for a reasonable fee if you have the funds. I will give free consults via email if you want to discuss the particulars of your case and can be reached at [email protected].

With respect to your question about calling your father and grandmother, this is not the same company that sued you. They would not be calling so I suspect that this is for another debt. Resolving the debt is one way if its the same people that sued. However, if its not, you need to write to them. If its a debt collector, then the debt collector is not allowed to call third-parties (like your dad or grandma) unless its for the sole purpose of obtaining your location information. If you write to them and tell them not to contact you at work as your employer does not allow you to receive personal phone calls and not to contact third parties like dad or grandma and only to contact you in writing at your residence, then they have to obey or risk being in violation of the law. If you have an attorney and they know you are represented, that will also stop them. Your father and grandmother could also write to them and tell them that you do not live there and to stop harassing them.

Debt collectors must send you a letter within 5 business days after they first try to call. Have you received a letter from them? Have you disputed the debt or written to them about the debt? If you have not received a letter, do you know their phone number? If so, Google it to make sure that you have identified the correct collector. Once you get the name, its easy to get their address.

In addition to the above answers if the debt is large or you have many debts, bankruptcy may be a good option to eliminate the debt. My office can evaluate that option for you. Feel free to call me.