Legal Question in Credit and Debt Law in Maine

***Credit Card Default. Lawsuits, Judgements & Consequences***

Situation:

Massive Credit Card Debt; Recent Defaults; No Income; No Assets, Maine Residence.

Questions:

1. What is the most common amount of time between a credit card default and a lawsuit?

2. What are the possible consequences of receiving a Default Judgment? [Not going to lawsuit court summons; contempt of court]

3. If "Contempt" is the courts judgment, is incarceration possible? [If yes, in which states?]

4. If one were to attend their court summons for defaulted credit card debt, and the debtor made it clear that they were unable to pay at all, what would be the most likely outcome?

5. Is anyone affiliated with the defaulted credit card debtor at any risk? [ie. friends, family; not including co-signers]

6. Is there any legal way to force credit card companies to stop harassing the employer listed on the original application?

7. What could be considered to be fraud, regarding the original credit card application?

8. When would anything perceived as fraudulent be addressed, regarding the default, lawsuit & judgment process?

Any response(s) would be greatly appreciated.


Asked on 8/26/09, 3:39 pm

1 Answer from Attorneys
scott logan Law Office of J. Scott Logan, LLC

1) Typically, after default, an account is placed for collection at around 3 months after default. After that, it's up to the creditor. Typically, Citi will file a lawsuit about 3 months after that. Other creditors will wait as long as just before the 6 year statute of limitations.

2) Default judgment will just allow the creditor a judgment to put a lien on your property and make you attend a disclosure hearing.

3) Yes. A Civil Order of Arrest may issue and you can be arrested by the sheriff.

4) If you had no assets that were not exempt, the court would like continue hearings every 90 days until something changed.

5) No friends or family members are at risk unless they co-signed or co-own property subject to attachment

6) If you ask the collection agency to stop calling work, it cannot call or will be liable for damages of up to $1,000 under the FDCPA.

7) misrepresenting your income or assets on the application

8) Probably during the lawsuit; but this more of an issue if you file bankruptcy.

Please feel free to call me at 699-1314 for a free consultation or email [email protected]

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Answered on 8/31/09, 4:41 pm


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